What is the correct strategy for bottom-fishing? The key lies in actively buying low and positioning oneself correctly. This article is sourced from Cyclop’s X platform research, compiled, translated, and written by Deep Tide.
(Summary:
Perspective: Is the Bitcoin market’s difficulty in rising due to panic or a conspiracy by large-scale mining companies?)
(Background:
CryptoQuant: Bitcoin miner selling pressure decreases! BTC initiates a new round of increases in Q3)
Table of Contents:
1. Avoid high-risk operations
2. Stablecoins
3. No funds to buy low? Find a Web3 job
4. Enhance your skills during market boredom
Regarding how to buy low:
When should you buy?
What do you need to buy?
How do you buy?
But specifically, when should you buy?
Summary:
True wealth is created during consolidation phases, just like now. But no one explains how to profit from it, everyone just says to buy low without sharing specific methods. This tweet will serve as your operating manual, helping you maximize the downturn in the market.
We are currently in a consolidation period, and our main goal is survival. Those who achieve this will stand out in this bull market. The key lies in actively buying low and positioning oneself correctly. Below is my ultimate operating manual to teach you how to do this.
During such a consolidation period, taking significant risks can lead to heavy losses in your investment portfolio. Therefore, limit high-risk operations to within 3% of your investment portfolio, preferably focusing on low/medium-risk operations.
Allocate 30% to 60% of your investment portfolio to stablecoins. They help reduce volatility and allow you to buy low at the right time.
If you don’t have funds to establish a position, find a Web3 job. These periods usually last for 4-6 months, giving you enough time to build a minimal investment portfolio, especially now when there are many job opportunities.
This is the difference between winners and losers. Those who conduct research and actively learn new things during market boredom will stand out in this cycle. Here are some skills:
Programming
Video editing
Copywriting
This means buying at the lowest price, but there is a question: how do you predict the lowest price? The answer is simple: no one can predict it. But we can get as close as possible to the lowest price through strategies.
To buy low as much as possible, you need to know the answers to the following three questions:
When do you need to buy?
What do you need to buy?
How do you buy?
Let’s delve into them.
The usual pattern for all bull markets is: halving -> 18 months -> all-time high (ATH). We can divide the entire cycle into:
Phase 1 – Buying
Phase 2 – Repair
Here is an approximate chart including these phases:
Phase 1 – Buying season during the decline, usually lasting 14 months. Our task is to accumulate positions.
Phase 2 – As the market approaches its peak, we start locking in profits.
To maximize profits, we need to find undervalued altcoins.
But remember the risks:
High market cap = Low risk
Low to medium market cap = High risk
Choose based on your risk management and investment portfolio.
Undervalued altcoins are usually in the price discovery phase. They can be assets with high or low market cap. You can also increase your position in $BTC/$ETH to reduce portfolio volatility.
Buying low is a complex process. We cannot invest all our money into a token at once because it may not truly be at the lowest point (the price may continue to decline). This is why we use the cost-averaging strategy for buying.
Let me explain.
The cost-averaging strategy, in simple terms, means buying in batches to achieve the lowest average purchase price.
For example, with a $1,000 investment portfolio:
First purchase – $100
Second purchase – $200
Third purchase – $300
Fourth purchase – $400
You can freely adjust these numbers according to your situation.
The simplest method is to buy each time $BTC drops by 5-7%, keeping in mind that altcoins may drop by 10-15% during this time.
Again, you can freely adjust the percentage based on your strategy.
Check if it’s the right time to buy low and also check if altcoins are still undervalued. Then use the cost-averaging strategy:
BTC -5% = Buy $100
BTC -5% = Buy $200
BTC -5% = Buy $300
BTC -5% = Buy $400
This way, you are effectively buying low.
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