How to make BTC off of exposure to alts

Hello there my friends,

With the recent uptick in interest in crypto again, I’d like to share an anecdote on how I’ve been able to be as unemotional as possible when buying and selling crypto.

This may seem intimidating to many, but truly it is one of the easiest ways to capitalize on the volatility of this market.

The answer is bots. No coding, no complex tutorials required.

There are numerous bots for numerous strategies (examples listed at the end), but what I wanted to share today is primarily how to use a smart rebalancing portfolio bot during a bull market to use exposure from alts to stack btc and eth.

Last bull run I used kucoin for this ???? but now that that’s gone for US citizens, I’m using Pionex this time around. DYOR as always about which platform you wish to use. After you’ve done the prerequisite of having a bot trading platform available to you, and you’ve signed up, kyc’d and deposited, you are ready for this process.

First:

Select “Smart rebalance bot” and begin.

Choose your portfolio.

If you’re like me, you have mostly btc & eth and a bag of ragtag alts ranging from DeFi to eth L2 to meme coins.

Eg.

BTC ETH AVAX DOT ATOM SOL LINK DOGE SHIB

Second: This is important - Add a stable coin. For me it used to be USDC due to reliability/trust, but I eventually switched to USDT due to fees per trade. Do what’s best for you.

The idea is that the stable coin will be the only asset tied directly to fiat in the portfolio. Meaning if the whole portfolio is crashing, your stable coin is automatically buying. While if there are assets pumping in the portfolio, you will automatically be selling, keeping a percentage as “cash” on each trade, as well as hopefully accumulating more btc or eth along the way from pumping alts.

Third: Now the portfolio is your chosen assets, plus a stable coin. We have to give weightings to the portfolio - this is based on your own personal convictions but an example looks something like this -

Eg.

BTC - 25% ETH - 20% AVAX - 6% DOT - 6% ATOM - 6% SOL - 6% LINK - 6% DOGE - 5% SHIB - 5% USDT - 15%

I set mine to rebalance every 5 minutes so I never miss a crazy pump, but play around with intervals/thresholds depending on your volume.

Also the more stablecoin, the more stable the portfolio. More stablecoin = more cash less crypto. You will be selling more into cash during pumps, and buying less during dumps. This might make you money, but it will likely not accumulate tokens. The less stable coins you have the more volatile the entire portfolio will be. In my experience the sweet spot is somewhere between 10-30% of the portfolio.

And voila, you now have your own little institutional-grade trader in your back pocket.

I personally DCA directly into my bots, because it automatically buys into all my assets and keeps some cash for buying dips.

Things to keep in mind:

You may limit your upside doing this, but in doing so, you also limit your downside.

Also you cannot do this with staked coins - for instance most of my alt coins are still locked in staking for the time being, mostly DOT, ADA, ATOM - your coins have to be liquid, so I have a separate small pool of them in the bots that aren’t earning interest as they normally would be. Again, I just want the exposure from alts to automatically buy more btc/eth if they do pump.

There are tax ramifications to doing this, check your local tax laws.

If the bear market hits and your alts drop 90+ percent, you will be selling your btc & eth for alts that may or may not ever recover - don’t go too crazy with your picks unless you like to gamble.

Lastly,

You want to make btc off of arbitrage with eth? The only downside being you might end up with more eth than btc? Use a grid trading bot.

You want to make cash off of arbitraging the same asset - buying low and selling high? Use a reverse grid trading bot.

You want to DCA and make a principal amount set to buy every x interval? Use a martingale bot.

Use a bot. Take the emotions out of it. If you have cheap or free power, I highly suggest participating in a PoW network that you can feed your bots with. When I had cheap power last bull run I made life-changing money because of that glitch. Mining-> Bots -> withdraw cash and keep crypto. Now that power is so expensive in my area and I don’t have solar yet, it is less tenable for my situation, but it may not be for your living situation.

Stay safe, good luck ????