This is how volatile the cryptos market is. Just last week, I was writing about watching my crypto holdings on Hodlnaut (BTC and ETH) and Cake DeFi (DFI) hit new highs. Even my regular purchases on Crypto.com (LINK, LUNA, DOT, SOL and MATIC) were also in gains. In the last few days, that high is all gone now. It’s to be expected from the cryptos market and why I don’t trade it. Leveraged cryptos traders with long positions would have been liquidated given how quickly the market dropped in such a short time.
My investment strategy for cryptos is to mostly buy large caps regularly over time and hold for the long term – generate higher crypto interest and lower capital gain. And buy lesser amounts of small caps when the opportunity arises and hold again for the long term – generate lower crypto interest and higher capital gain with the potential for higher staking rewards. It’s not complicated but difficult to execute consistently given how fast-moving the cryptos market is and trading occurs 24/7. Meaning big movements can be happening while you sleep.
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With the recent dip in the cryptos market, I have been swapping my stablecoin (USDC) holdings on Hodlnaut into BTC and ETH as the prices dropped. Not big amounts but 50 to 100 USDC at a time. On my Crypto.com account, I have been initiating small purchases (using USDC after transferring in XSGD to buy it) of a variety of cryptos (such as XLM, BNB, ADA, LTC and XRP) outside of my regular purchases (LINK, LUNA, DOT, SOL and MATIC) as the prices dipped. Using even smaller amounts of 10 USDC at a time.
While the value of my cryptos portfolio has gone down, the number and amount of crypto holdings has increased. This is an opportunity for me to accumulate more of the cryptos I have been monitoring for a while now. It’s possible for the prices to drop further so I’m in no rush to commit more of my cash funds. In any case, I’m running out of investing cash as I was averaging down on Paypal and Disney. And regular contributions to my various investment plans with robo-advisors and banks continue to drain my cash.
My salary income is mostly used up and I’m waiting for my wife’s salary income now for the top-up. I have a big credit card bill payment due around the same time so it’s going to be close as to whether I have enough cash to pay it off on that day. It’s like my cash level is on survival mode because I’m not used to investing this much every month. But I’m pushing for it to increase more quickly to get my buffer in place. I would probably be in a more comfortable position by end Dec after my wife’s bonus is credited. Just more breathing space to not worry about paying for expenses and invest at the same time.