Creative Accumulation

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15 Oct 2024

Delayed Gratification
Altcoin investors love to see their bags grow. Many have a single asset they are committed to, regarding accumulation. However, this practice follows a fairly simple process of dollar-cost averaging. Dedicated Hivers, on the other hand, grow their stack by creating content, engaging, and curating. The inflationary-based rewards are accumulated daily from the protocol. However, for those purchasing their assets, there are creative ways of multiplication.
An investor can choose to set up an automated dollar-cost averaging strategy or purchase assets when they have available capital. Either way, it’s much of a muchness. Choosing to delay the gratification of seeing more of your favorite coins in your wallet can be a beneficial sacrifice with a few strategies. Many of these are trading-based and are reserved for traders.
Taking advantage of market movements can speed up accumulation. Instead of investing directly in your favorite altcoin, another approach can be initiated. For instance, when your desired asset has reached a previous point of resistance and is experiencing a rejection, identify an altcoin that is about to do the opposite. In other words, coins that have broken out and beyond previous resistance.
The Double-Whammy
This dynamic can create a double-whammy effect if the scenario plays out as expected. Instead of investing in your desired altcoin, invest in the coin breaking out. This will increase your capital. Furthermore, your primary coin is likely to drop due to experiencing a rejection. Now, not only do you have more capital to deploy but your desired coin is now cheaper. It’s a double whammy that can easily add 20% to 30% depending on the breakout and rejection.
Another trading idea is to utilize the approach I have addressed numerous times on this blog. Buy the asset outright, but then sell peaks that are met with rejection and repurchase lower. These little tips and tricks add up over time. Another idea is to utilize DeFi opportunities within the market. Every so often new pools launch with enormous returns. Purchase these particular assets and farm rewards, even if for a week or two.
When you are satisfied with the increase you have attained, sell the assets and purchase your primary asset with additional capital. This will ensure you receive more coins than if you had just gone straight for your primary asset. There needs to be a rational approach to this strategy, regarding the type of coins you choose to work with. Don’t just jump on a high-yielding opportunity.
You have to ensure that the asset is of the appropriate caliber. A high APR is pointless if the underlying assets involved are dumped. In such a scenario you are better off purchasing your asset outright. Risk management must always be present with anything you attempt within the Crypto and finance world, There are plenty of different strategies one can apply to multiply accumulation.

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Final Thoughts
Piling up more coins than your initial capital made allowance for is a rewarding experience. However, one must keep a clear head, not be greedy, and know when to exit and move into the primary position. This is another avenue of compounding that can seriously enhance your portfolio. Investors can also test these ideas with some of their investment capital to see. All the best, keep stacking, and I will see you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.