Gaetan Dresse
Switzerland
Dear Copiers and Followers, It's been a while since I last posted, but I now feel like it is time to get back on track as I'm excited to share some updates and strategies with you all. Over the past two years, my portfolio has seen its ups and downs, particularly with a challenging 2022. However, every other year has been marked by market-beating returns. Long-Term Strategy: Dollar-Cost Averaging As I’ve emphasized before, the volatility in my portfolio makes it an ideal candidate for a Dollar-Cost Averaging (DCA) strategy. By investing a fixed amount (e.g., $500) every three months, you can take advantage of the highs and lows, thereby maximizing the efficiency of your investments over time. This strategy is particularly effective given the increased difference between the lows and the median prices compared to standard indexes. Current Market Outlook We are currently in a bullish market, and with the US elections slated for November 2024, I don't foresee this trend reversing anytime soon. My recommendation remains to follow a DCA strategy with a 5-10 year time horizon for stable growth. Short-Term Opportunity: Cryptocurrency Bull run Now, onto something more immediate, I would like to discuss a mid-term investment opportunity. As some of you may have seen, I have been using the past few months to build up some of my crypto positions as I see a compelling opportunity to make crazy returns over the next 10-16 months. Let me break it out for you: 1. Bitcoin Halving Cycles: Since Bitcoin's inception in 2009, we have seen four distinct cycles, each driven by the Bitcoin halving (where the creation of new bitcoins is halved every four years). 2. Historical Patterns: The first 3 cycles have been almost identical in terms of structure with Bitcoin delivering significant gains the year before the halving before exploding and peaking 12-18 months after the halving. (See attached picture representing $BTC performance) 3. Crypto Market Behavior: To talk about the entire crypto market, let's focus on the previous 2 cycles (halvings of 2016 and 2020) as altcoins were irrelevant before 2016. Liquidity typically flows this way: $BTC pumps -> $ETH pumps -> ALT Coins pump ($LINK $NEAR $IMX $SOL ...) 4. Managing Risk and Returns: This is where it gets tricky. Higher returns mean higher risk and managing this risk is vital in crypto, so here's how I plan to play my shorter-term crypto positions: I will take back my investment at *2 which I expect to happen in the next 4-10 months. I will then deal with my free money, aka profits, only by trying to time the top of the cycle following $BTC performance while taking profit during extreme green days. 5. Crypto Market Analysis: Whilst I only started investing in cryptos in 2019, I spent the past 4 months studying the crypto market and never in my 10 years of investing have I seen such correlations. History is clearly repeating itself and it would be a shame not to position yourselves to enjoy some market-beating returns, either by building your own crypto portfolio (in which case you should pay attention to point 4) or by copying mine. Let's print some money together!
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