Crypto Investments

Research
Risk Managment
Diversification
Emotional Control
Technical Analysis
Research the people in leadership postions, it’s the head which leads the body.

• Find out what is their plan for the company

• Important to pay attention to their ethics and team
• Do they deliever on their promises?
• Research each member of team and find out about their
background.
• Look out for red flags
Compare projects

• Important to find the competitors of your businesss

• For long term investments you want to associate with
project that will perform well in the future
• if the competitors have a better team, hitting their goals
faster, offer more features and stand out in an authentic
way it may better invest in them.
 Using a stop loss

• Stop loss orders are very helpful when price movement is

against trader’s position
• It offers risk managment making so you won’t lose all you
money and might even have unrealized gain
Investment strategies
1. Create exit strategy for your holdings. At what price do you plan on selling or taking profit?
2. Don’t be greedy as you aproach bull market. Take your wins.
3. Be prepared to pay your taxes. Talk to accountant on how much you would have to pay.
4. Spend a little and you if decide to reinvest you crypto again then do that.
5. Don’t try to time the market and expect to quadruple your earnings. Take your gains as
soon as you can because cryptocurency moves fast and changes when you least expect.
6. Keep track of your cryptocurrency and have a detailed plan on what you plan to do.
7. Have an idea where you’ll deposit your funds for the short term such as bank until you
have a solid idea where you going to invest.
8. if you need to reinvest your money on different assets do your reseach now on some
possible places you may want to re-invest your crypto
Risk managment

• Don’t take all in or nothing approach when investing. Find

sweet middle ground solution that offers risk and return.
Diversify Funds- Don’t put all you eggs in one basket

• There are different types of cryptos privacy coins, alt

coins, Defi tokens, etc. (most alt coins must be avoided)
• Make sure you portfolio represents each of those types
• Let’s say Bob’s portfolio 90% Defi and BAM there is a
new regulation that limits defi. What happens? Bob loses
90% of his portfolio.
Time Diversification

• Rather than buying coins in one day you buy it in

intervals. For example you would slowly inch into position
by 10% each month. Completing you portfolio in 10
months.
• Place price alerts on coins you are intrested in. This will
help you to stay up to date and prepare you to the market
movements and allows you to react quickly.
Emotional roller coast

• People behave according to their emotions when they are

strong. So when trajectory is upwards there is hope,
optimism, thrill, euphoria but when its going downwards
its worry, anaxiety, denial, panic, depression.
• The key is not to get affected by them internally and
especially externally. These emotions that lack rationality
will be projected all over the social media platforms.
Emotional Control Plan
• Focus on the long run and the big picture.
• Anaxiety over short term losses can cloud your judgment and lead you to limiting growth
potential over the long run.
• Think carefully before abandoning long term plans for short term gains. The crypto market is
volatile so when its going downwards ask yourself if its going to affect your long term plans.
• Instead of fearing market correction see it as an opportunity to gain more. if you did an
actual investigation correction should not be scary at all.
• Again don’t get locked in frame of refernce keep your visison open for all posobilities.
• Investment decisions should be made with clear mind and based on intellegence as a frame
of reference. Don’t get into herd mentality.
• Fear of missing out might cloud your judgment and rush you into stupid positions. FOMO is
eventually emotion of “lack” so don’t get youself there. Patience is key.
Chart patterns put all buying and selling into one prespective by consolidating the forces of supply and
demand into a concise picture. As a complete pictorial record of all trading, chart patterns provide a
framework to analyze the raging battle between bulls and bears. More importantly chart reading can help
determine who is winning the battle, allowing traders to position themselves accordingly.
Support and Resistance
• Support and Resistance is respective price level at which
price stops going down or up.

• Market price is one at which bulls and bears agreed upon. if

bulls think price is low they will attempt to buy. As price rises
bulls become less agressive and bears more. At some point
bulls and bears agressivness will balance that point level
becomes resistance

•
Support works is the same way but in other way around.
Trend Lines
• Trade lines work like support and resitance but
are made of diagnols instead of horizontal
lines.
• When drawing downtred you draw them above
the the price
• When drawing downtrend you draw them below
the price
• It is highs downtrend and highs on uptrend that
determine a trend line.
• At least two swing high or swing lows are
needed to draw the line: However trend line is
only confirmed if you get three points it is no
coincidence anymore.
Slopes and Angles
• The slope or the angle of a trend line immidiatly
tells how strong the trend is.
• A large angle on lower trend means that the
lows are rising fast and the momentum is high.
• Some people call bump and thrust pattern when
you see that a trend is suddenly gaining even
more strength and then trend becomes
unsustainable at one point.
• Continuation pattern tells you that buying and
selling point is pausing. If big picture trend is
estabilished the pattern suggest it will
accelerate after the pause. Therefore this point
is good place to add more because you expect
move in the same direction. Continuation
pattern tend to be short term sometimes only
few days. They are also good spot to place stop
loss.
Ascending and Descending Triangles
• In system you draw horizontal line in both lows and highs and
make a trinagle
• Keep in mind if trend isn’t making new highs and niether new
lows you can expect trend to go up
• In ascending triangle if trend is crossing the line and moving
up you can expect upward trajectory.
• In descending triangle if trend is crossing the line and moving
down you can expect downward trajectoty. The important
case is that in this case he price failing to make new lows in
the prevailing downtrend.
• if you can draw a line along the series of lower highs it would
be mistake to buy at this point the probability is high that
trenddown is going to continue.
• Don’t only look at rising highs but also rising line along the
lows at the same time. Ascedning line of lows confirm the
trend continuation and provides you with ready made stop
loss level at this ascending support line
• Expected rise is equal to the height of the triangle pattern
Breakouts
• Breakout is the sign that trend is going to
change in its present form.
• It’s important to identify authentic trend
from fake one which some smart-ass
orchistrated.
• The channels you draw estimate not
certainty so sometimes you get little
breakouts as an imperfection. Its important
here not to come to false conclusion that
trend is over. In this case trend will go back
to normal in couple days or less.
• During a false breakout candle generally
failes to close but rather be a quick wick in
short period of time.
Dead Cat Bounce
 Double top/bottom
• Double bottom similar to the double top but
instead of M its W.
• For M when bulls fail to bring back to the first
high bear market starts as for W when the
lowest point in the middle is surppresed move
down begins. When conditions are met for top
delievers down move 83% of them time and for
bottom 97% but when conditions are not met
twin tops fail to deliever down move 65% of the
time.