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RE: How I Approach The Practice of Accumulating Crypto & Taking Profits

in LeoFinance5 years ago

I’m not at all in the position to do what you do, but I’ve heard more traders talk about having a core position. Then they also have a larger trading position that they either dollar cost average or also do what you do.

On hive I find it much harder to do that, since the use of hive power has a compounding effect. If I take a big chunk out, then I need to take into account that on an exchange it won’t give me that steady flow of income from curation.

Do you trade with your hive position?

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I think this can be done with any size portfolio. As long as you're mindful of fees (which can be low in crypto depending on how you approach it), I think it's smart to have some kind of plan to take profits/re-buy if the price drops.

I have a similar strategy on Hive that I do for most of my other investments -- I have a core position that I don't touch (this is my HIVE POWER that I use for curation activities) and then I also have a "non-core" position that I will trade relatively actively. Sometimes I even power it up temporarily and curate before initiating a power down to get it liquid again.

The Powered Up position is way bigger than the liquid position. I just like having a bit of a mix of the two to take advantage of things like the recent HIVE spike, for example.

Posted Using LeoFinance

Well that’s a good point indeed. I have just started trading on a small scale from my steem powerdown.

I think I’ll build up some liquid hive for trading purposes. Thanks for sharing.