Mindblown: a blog about philosophy.
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Cost Averaging Using Technical Indicators
Once you’ve established a routine of Cost Averaging, becoming comfortable with the mechanics and record-keeping, one option is to segue into trading by using technical indicators to adjust your regular investments. Your goal should be to adjust your allocation down during periods when the market is overbought and the reverse when the market is oversold.…
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Cost Averaging with Passive Returns
To add some yield to your Cost Averaging investment, you can combine it with a service that pays interest. This can be either Soft Staking – with no commitment – or Hard Staking, where you get higher returns but funds are locked up for a minimum period. This isn’t risk free, as the providers of…
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Cost Averaging
We’ve written elsewhere about Cost Averaging in our section on how to earn crypto. Cost Averaging – sometimes called Dollar Cost Averaging – simply refers to making equally sized, regularly recurring trades, instead of one lump sum. The attraction of cost averaging is that it can help mitigate concerns around volatility and choosing an entry…
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Be Clear Of Your Objective
It may seem like a silly question, but a crucial part of trading and investing decision making is having a clear idea of why you are doing it. Making money isn’t a specific enough answer. To start with there are other things you can do with your money to derive a return, so what you…
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Allocating Discretionary Income
How much time you spend in thinking about trading will of course be relative to how much money you want to invest. Before thinking about allocation, you should always follow these golden rules: Never invest money you cannot afford to lose Don’t invest using a credit card or debt such as student loans or re-mortgaging…
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The Importance of Time
Everyone will be familiar with the phrase ‘practice makes perfect’. The celebrated author, Malcolm Gladwell, popularised the idea that mastering a skill takes 10,000 hours of practice, along with innate skill. Though Gladwell’s idea has been challenged, there is a definite correlation between time and success in trading cryptocurrency. You have to commit the time…
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Simple trading strategies
What you’ll learn : The Importance of time Allocating discretionary income Have a clear objective Cost Averaging as trading strategy Learn crypto’s section on how to trade cryptocurrency provides a basic foundation for anyone new to the subject. Trading is about trying to quantify and manage risk. Cryptocurrency markets are inherently risky because they are…
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Entry point & DCA
Fundamental Analysis is broad and far reaching, with this article only skimming the surface. At some point however, you’ll need to draw a line and decide whether to invest or not. Though Technical and Fundamental Analysis are very different approaches they can complement each other. If you’ve conducted your Fundamental research on a cryptocurrency that…
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Financial Metrics
Though cryptocurrencies don’t have familiar revenue based metrics they do are metrics that are useful. Market Capitalisation This is the number of coins in circulation (aka Circulating Supply) times price. On its own it’s a metric that should be treated with caution, as it can be spoofed or reflective simply of manipulation like pump and…
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Competition & Differentiation
Though the what, why and how framework are useful, alone they aren’t enough to charge ahead and invest in the long term success of a new cryptocurrency. Right now there are over 3,000 coins and tokens each proclaiming their own unique use case. Success will depend on whether they are the only project offering a…
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