A Bitcoin whale known for sharing his opinions with the wide public is now promoting an investment strategy that he claims most crypto traders do not consider.
The pseudonymous trader known as Joe007 says that smart traders keep an eye on Bitcoin’s long-term price movements, selling their positions when BTC price has grown ten times, and purchasing the crypto coin when Bitcoin has decreased five times from its top.
The trader, who is known for placing large bets on the exchange Bitfinex, refers to the method as a ‘simple and effective investment strategy that allows anyone to become a whale within a reasonable timeframe.’
Even though declining returns will ultimately show up and get rid of the viability of the strategy, Joe says the 10x/5x rule will be a great method to use and will hold up for at least the next few cycles. The trader believes Bitcoin is too volatile, at the moment, to consider the ‘buy and never sell’ approach.
Bitcoin’s Halvings Will Start to Matter Less Cycle-to-Cycle
Joe says that the repeating patterns of highs and lows are matching the buzz on the Internet about BTC.
“Buy BTC when it’s way down, and everyone and their dog barks about how it’s going to zero soon and sell it when it’s way up, and a boomer neighbor asks you for tips on how to get into ‘the next Bitcoin.'”
Joe007 also said that Bitcoin’s halvings would not be so important with every cycle that passes.
“Halvings may have served as major drivers of supply/demand imbalance in early cycles, but over time changes in demand side will be playing a much bigger role, IMHO,” he explained.
When it comes to his personal portfolio, the trader says that in addition to Bitcoin, he places a ‘non-trivial’ amount of his fiat Tether (USDT) to hedge against ‘banking system failure.’