Staggering your digital currency investments

Last updated: October 10, 2017 Investing Strategy 0

How to make money HOLDING onto your digital currency

I don’t think many experts can argue with the benefits of buying digital currency and holding onto it for several years. I myself have money tucked away that I will not touch for quite some time in hopes that we see gains comparable to past years. However, since the markets appear to make lots of dips every week or so, I figured there should be a better way to capitalize on these swings. Obviously, in an ideal world you would sell high and buy low, but that is often much harder than it seems. That’s why I’ve come up with a more “aggressive” way to be conservative with your money without just holding on to it for years to come.

I call it “staggered holding”

I know I didn’t invent this idea at all, but as far as digital investing strategies go I have only seen a couple of popular strategies. Holding until the currency doubles or triples, or doing lots of day trading (which never seems to work out in the long run). So that’s why I decided to create more of an in-between approach. The idea is to be conservative and to hold your money, while slowly accumulating profits when the price drops or rises.

What’s the basic idea behind it?

The idea is that you place “Sell limits” on small parts of your currency at various increasing prices. Let’s use Bitcoin as an example. To make things easier let’s just say you own 1 Bitcoin. And let’s just say the current price of Bitcoin right now is $4,500. Here’s an example breakdown of how you would set up your “Sell Limits”. You can make the intervals smaller to be more aggressive, or larger, to be more conservative. It’s usually a good idea to hold a large chunk of your currency in an actual wallet, instead of leaving it all on an exchange.

  1. Sell Limit 1 – At $4,700 sell 0.10 BTC
  2. Sell Limit 2 – At $4,900 sell 0.10 BTC
  3. Sell Limit 3 – At $5,000 sell 0.10 BTC
  4. Sell Limit 4 – At $5,250 sell 0.10 BTC
  5. Sell Limit 5 – At $5,600 sell 0.10 BTC
  6. Sell Limit 6 – At $5,900 sell 0.10 BTC
  7. Sell Limit 7 – At $6,150 sell 0.10 BTC
  8. Sell Limit 8 – At $6,450 sell 0.10 BTC
  9. Sell Limit 9 – At $7,850 sell 0.10 BTC
  10. Sell Limit 10 – At $9,600 sell 0.10 BTC

Basically it’s like automatically selling pieces of your pie at the HIGHEST PRICE without selling the whole thing. 

selling bitcoin as parts of pie

What’s the point of this?

The reason “staggered holding” has worked so well for me is that it allows me the chance to re-buy more currency with the profits I make when the price drops. If in our example above, Bitcoin decides to spike to $5,300, we will have sold .40 BTC for a very nice profit! Then as Bitcoin starts to drop in price again, you can then go use all your profits to now buy .50 BTC. Then you would re-setup your staggered investing “sell limits” and keep repeating. As long as Bitcoin continues to follow its current patterns, you will be making a great return on investment and you will be able to cash out the money or keep adding more currency to your portfolio.

Sell Limits are automatic and you won’t miss out if you are busy

The best part about placing “Sell Limits” is that you don’t have to be online at the exact time you want to make the trade. The digital currency markets are open 24 hours a day which makes it impossible to always be watching them. By setting “Sell Limits” you won’t accidentally sleep through a huge spike or happen to be on vacation during a crazy price surge. Nothing is worse than going to bed with a currency worth $100, having it go up to $150 in the middle of the night, and waking up to it being worth $100 or less… If only you had set a “Sell Limit” to capitalize on that gain!

Real example of Bitcoin’s ups and downs

This is real data of Bitcoin’s prices over the past few months. As you can see, there have been a ton of gains and drops over the months. In this screenshot, I counted about 10 different “ups” and “downs”. With my staggered investing strategy, I was able to make money each time there was a rise in price (where the green sections are together), and then was able to buy the currency for cheaper when the price dropped (where the orange sections are together).

bitcoin staggered investing conservative dips and gains

What if I just held?

In this example, if you would have just held your money, you would have made a nice profit! It obviously depends on the price that you bought in for, but as long as you bought in for less than $4,800 you would have made some money if you decided RIGHT NOW to sell. However, what if you sell and the price keeps going up?? You will regret that. Or if you keep holding, the price could drop and then you’ll be back in the hole… That’s why I feel much safer selling off little bits and pieces as it grows, that way I still hold on to a large majority, while making a guaranteed profit! Now in a week or so when the price drops, I will go and buy some more cheap Bitcoin, and setup some more sell limits. Following this strategy, I have been able to more than double my portfolio, while retaining the option to have liquid cash at any times.

Staggered Investing eliminates the “what if” game

The most difficult part about investing is playing the scary “what if” game. You hear it all the time where people regret selling at the wrong time, buying at the wrong time, or realizing that they could have made thousands if they just held and sold at the right time. The only way this strategy “doesn’t work” is if the digital currency prices continue to go up and you sell off every piece of currency and aren’t able to buy more… BUT WAIT, if that happens that means that you made a HUGE PROFIT. If you staggered your investments that means each time another section sold off, you sold it for an even higher price. Then the next time a section goes, you sell it for an even HIGHER price. I don’t think many people would be too upset at more than doubling than investment! Yeah you might have missed out on some extra money with the big price increase, but what happens when the price suddenly drops and you didn’t sell. You’d be back to square one with nothing to show for. Digital Currency is only worth money WHEN IT HAS BEEN SOLD. It could be worth $10,000 today and $5 tomorrow. If you still have it when it’s worth $5, then it’s only worth $5.

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