cryptoglobe.com
Koroush Khaneghah, widely recognized by his online alias “Koroush AK,” is a prominent figure in the cryptocurrency community, celebrated for his multifaceted contributions as an educator, analyst, investor, and trader. He has carved out a niche for himself by providing a wealth of educational content aimed at demystifying the complex world of cryptocurrency trading and investment strategies. Through his engaging presence on various platforms, including Twitter and YouTube, Koroush AK shares invaluable insights into market analysis, technical analysis tutorials, and advice on portfolio management and trading psychology.
Beyond his social media outreach, Koroush AK is the driving force behind the Market Meditations newsletter, a comprehensive resource that delivers regular updates, analyses, and educational content to its readers, helping them stay abreast of the latest trends and strategies in the cryptocurrency market. He also hosts the Market Meditations Podcast, where he explores a wide range of topics related to cryptocurrency. The podcast features interviews with industry experts, offering listeners deep dives into market dynamics, investment strategies, and the future of blockchain technology.
In the whirlwind of a bull market, where the fear of missing out (FOMO) can cloud judgment and lead to hasty decisions, Koroush AK offers a thread of wisdom on social media platform X. On February 25, he laid out a strategic guide for navigating the bull market, addressing critical questions, and providing actionable advice for both seasoned traders and newcomers to the crypto space.
Should You Trade in a Bull Market?
Koroush AK begins by tackling the question of whether one should trade in a bull market. His advice is straightforward: if your trading journal, filled with data, shows profitability, then trading might be a viable option for you. However, for those without this evidence, Koroush suggests steering clear of trading. The rationale is simple yet profound—significant money can be made in a bull market without engaging in active trading.
Making Serious Money Without Trading
Highlighting the massive gains seen in 2021, where Bitcoin (BTC) saw approximately 15x returns from its bottom, Ethereum (ETH) about 40x, and Solana (SOL) an astonishing 200x, Koroush underscores that these were not flukes or limited to obscure altcoins. By merely having passive exposure to these assets, investors could have netted substantial returns. This segment of his guide serves as a powerful reminder that strategic investment and patience can be just as lucrative, if not more so, than active trading.
Strategy to Buy
Koroush AK outlines a clear, two-step buying strategy for those looking to invest in crypto during a bull market:
- Decide on the Percentage of Net Worth to Invest in Crypto: He suggests either lump-sum investing or dollar-cost averaging (DCA) into the market, with a personal preference for the former.
- Decide on Asset Allocation: Koroush recommends a portfolio primarily composed of BTC, with a significant portion in ETH and an optional 0-15% in altcoins, depending on individual preference.
This approach emphasizes the importance of thoughtful investment decisions based on one’s financial situation and risk tolerance.
Strategy to Sell
Selling, according to Koroush AK, should be approached with a strategy aimed at protecting gains and ensuring a balanced portfolio:
- Rebalance Altcoins into BTC and ETH: This step helps consolidate gains from more volatile assets into those with a more established market presence.
- Rebalance Crypto Holdings into Other Assets: Diversifying your investment portfolio by rebalancing crypto gains into other asset classes can protect against market volatility and euphoria.
Koroush mentions maintaining about 15% of his total net worth in crypto and rebalancing any deviations from this allocation, highlighting the importance of maintaining a diversified and balanced investment portfolio.
Dealing with FOMO
In a market where overnight 100x returns can become the talk of the town, and influencers flaunt million-dollar positions, Koroush offers a guide to managing FOMO. He advises investors to critically assess whether such gains are the result of skill or merely a gamble. He believes the key is to focus on protecting oneself from loss rather than optimizing for the upside, and he claims that this mindset shift is crucial for long-term investment success and mental peace.
Featured Image via Pixabay