Cardano Dan's Newsletter - Issue #29
Multiple exits are better than one
Quote of the Day
Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.
— Robert Frost, “The Road Not Taken”
When I lot of people talk about this poem, they consider the choice between the roads and which one is better. I want to focus on the point that there ARE two roads. When you have more than one road, you have OPTIONS.
Earlier this week, I said that I’d come back to talking about exit strategies. When you’re trend trading, or trading the cycle, you plan to exit your position as close to the top of the trend as possible. Crypto has historically moved in 4 year cycles, so it logically follows that when you exit your position, you want to exit it to a path of liquidity because you have some time before the next uptrend.
In other words, if you sell on an exchange, you want to move your money off the exchange to a bank or some other option for spending/using your money in the meantime. Exchanges are known for doing funny things or having service interruptions at very inconvenient times.
When it comes time to exit your trend position (I talked about the different kinds of positions and possible portfolio allocations for each type of position back in Issue #3), you’re going to watch OPTIONS. Have you ever missed a highway exit only to find it’s 60 miles to the next exit? That’s not a good position to be in.
Let me encourage you to set up MULTIPLE options now. Have multiple exchange accounts where you can sell your crypto. Have multiple ways of moving your crypto off of each exchange account. Consider incorporating DeFi exit ramps into your options.
Then position your assets in such a way that if one path is blocked, you can still exit at least a portion of your portfolio through another path.
This is a lot of work, but it’s well worth it. Planning ahead now to have multiple roads ensures that you’re not stuck with only one road when it matters most.
Cardano Updates
The Cardano Foundation announced a Token Registry, “a trusted and curated collection of on-chain identifiers for tokens written and deployed on Cardano.” Another great example of the quality work that the Cardano team does.
Charles said in a recent interview, that there will be a special episode of Cardano360 called the “Africa Special” where they’ll announce deals that are already closed! I appreciate that they’re taking the time to roll this big news out the right way.
In The News
Ethereum’s Berlin Hard Fork went live, but the upgrade wasn’t seamless.
With Ethereum making upgrades, it brings out some common questions like, “What does Cardano have to offer that makes it better than an upgraded Ethereum?” Check out the solid reply to a similar question on reddit recently.
Dogecoin pulled a 3x in the last 4 days. SMH.
Technical Analysis
Cardano put in 6 green days in a row! The current trading day is red at the time of writing.
I continue to expect significant upward movement in the near future per the analysis from my last newsletter. I’m not going to be worried about a red day or two after 6 green days in a row. Not a lot new to add other than a reminder that crypto is REALLY volatile right now.
The shortest timeframes that I’m trading around are days or weeks. I’m am not doing any day trading or leverage trading. Here are a couple tweets with my thoughts on those topics.
If you like this newsletter, please share it with you friends!
Also, I’d love to hear your thoughts, questions, and feedback.
This newsletter is for entertainment and educational purposes. I’m not a financial advisor and you should do your own research and consult a financial advisor before investing in cryptocurrencies.
Which platform do you use to trade Ada or other cryptos?
Wow. Shows how little I pay attention. I receive emails for this newsletter but never clicked the links. I come on this site for something else and I see this when I log in. Boy do I need to get from under this rock I’m living in.