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Investing in volatile markets can be a thrilling yet unpredictable journey. The key, however, isn’t about guessing the next big trend; it’s about preparing for the highs and lows. To manage this, I divide my portfolio into two baskets: one for stable assets and one for volatile assets.
This approach not only protects my capital but also allows me to take advantage of market cycles without overexposing myself to risk.
The first basket is composed of stable, resilient assets. In my case, Bitcoin and JLP are the primary assets I’ve chosen for this basket. These are well-established, less volatile assets that provide a solid foundation.
This basket serves three main purposes:
Capital Protection: These assets tend to hold value over time and are less prone to extreme fluctuations.
Liquidity and Flexibility: Keeping a large portion of my portfolio here gives me the flexibility to move funds into the volatile basket when opportunities arise.
Long-Term Growth: While these assets may not experience explosive price movements, they steadily increase in value over time.
The second basket holds assets with higher growth potential but also greater risk. Examples here include Solana, SUI, and other emerging blockchain technologies.
These assets can potentially see massive returns, but they are also much more susceptible to sharp price drops.
For this reason, the percentage of capital I allocate to this basket is smaller than the one I allocate to stable assets. This strategy ensures I always have enough capital available to weather downturns without needing to sell in a panic.
A common mistake is to make large, one-time moves between baskets, trying to guess the best time to buy or sell. Instead, I use Dollar-Cost Averaging (DCA)—a strategy that involves making small, gradual moves over a period of time.
When the market dips, I move capital from my stable basket into the volatile basket using DCA.
I usually make these moves over a span of one month, ensuring that I get an average price rather than trying to pick the bottom.
This has several benefits:
Risk Reduction: If the price drops further after I buy, I get to purchase more at a lower price.
No Stress Over Timing: I don’t need to worry about guessing the perfect entry or exit point.
Steady Growth, Not Rapid Gains: Instead of trying to maximize returns quickly, I focus on steady, less risky growth.
Just as I use DCA to enter volatile assets, I also use it to exit those positions and return to stable assets when I’ve realized gains.
If a volatile position has appreciated significantly, I move a portion of it into my stable basket using DCA over a month.
This ensures I don’t sell everything at once, allowing me to capture gains while minimizing the risk of missing further growth.
Over time, this method helps build a solid foundation as the stable portion of my portfolio grows.
The goal of this strategy isn’t to maximize short-term profits, but to minimize unnecessary risks while achieving steady, sustainable growth.
Instead of trying to hit a "home run" with every trade, I focus on consistent, reliable progress.
It doesn’t matter if the price goes up or down tomorrow; what matters is that my portfolio keeps growing steadily.
Patience and discipline are the true rewards for investors who stick to their strategy without getting carried away by market hype.
🔹 The patient investor always has the capital to take advantage of the best opportunities.
🚀 Exponential TOM 🚀
