Apply 50% rule for purchases - purchase initial position using half the amount you want to invest - only ever purchase more if the price falls by 50%, using half of the remaining amount - you have an infinite number of times to purchase - apply the same formula to any new crypto position
Apply the 10% rule for withdrawals - sell 10% if position does 100x - sell 10% (of the remaining 90%) if it doubles from there - sell another 10% (of the remaining 81%) if it doubles from there and so on - you have an infinite number of times to sell
Specific example: - lets say you had $1000 to buy Digibyte in 2016 - maybe you bought at .0008 in the bull run 625,000 ($500) - in the next 15 months you would have bought 625,000 at .0004 ($250) - and 625,000 more at .0002 ($125) - you now have 1,875,000 Digibyte (cost $875) - in 2018 you sell 187,500 at .04 ($7500) (100x average buy price) - sold 168,750 at .08 ($13,500) - now you made $21,000 by selling roughly 1/5 of your original $875 investment. - the remaining 1,518,750 Digibyte has roughly never been worth less than $15,000 and for a very short window of time it could have been sold for $182,000 in addition to the $21,000 you made along the way. - but now you have 1,518,750 DGB going into the next bull run.
Stack responsibly
Do you think DGB will 100x, 200x, or 500x in the next bull run?
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