Do you know someone who bought BTC in 2017 for $15000 or higher? Or someone who was convinced that the best way to invest in crypto was to buy XRP at $2 a token? I do. I know a few. People who knew nothing about crypto until 2017 when it was all over the news decided to jump in and buy at all time highs. We all know how that story went. Its never that crypto is a bad investment, its the entry stupid! People who bought in at 5K are still 2x their capital. Only suckers buy at the top.
I am always advising my friends to buy and HODL crypto (If you dont know the word, google it!). HODLing is usually a good strategy for two reasons:
1. It can give you great if not the highest returns, and it is the simplest to execute — without any trading or financial knowledge.
2. You don't need to spend time trading or worrying. The average investor has a busy life doing a job, spending time with family and perusing hobbies, he or she doesnt need the stress that comes
In-fact most people don't even care about getting the best returns as much as about not having to actively trade. So that’s my usual advice for anyone who doesn’t know anything about trading or can’t handle the stress of crypto volatility.
But here’s the thing. HODLing wont work for someone who went all in BTC at 19000 USD as there is very little upside left (whenever that happens). So the entry is key to making a good investment.
So I began to wonder, what if we could create a solution as simple as HODLing but that could also take care of the entry. Now most people don’t do entry planning or look at charts before taking a position. If crypto investments is ever to get mass adoption, we need to figure out something completely that a non technical & non-finance person can do. Something akin to investing in Index funds. The only thing is since all cryptocurrencies are highly correlated to BTC, a good crypto index fund would have to do more than just diversify coins based on market cap, like most crypto indexes do. More on that in another post.
Imagine an investment bot where you can put in your money and it can time you entry so that you never buy at the peak or at-least invest your savings in chunks over a longer period of time, something called dollar-cost averaging. That doesn’t sound too hard. And the investors doesn't have to do any of it, just put in money once and let the bot do all the averaging based on all the the technical indicators (RSI & MACD to begin with). And while we are at it, why not let the bot make an extra little profit from trading the volatility again based on simple technicals. So what we need was a portfolio of bots (not one, mind you) that work together to pickup a good entry point based on market signals, take calculated risks and buy and sell without any biases or emotions.
So we looked at all trading bots in the market. They all require the user to know how to setup a bot, put in trading strategy and configure all the parameters. Nowhere close to what the average Joe would use. So we decided to make the solution ourselves. And that’s why we created BotsFolio.
Initially, we made Botsfolio to take care of our own trading strategies and crypto portfolios while we can sleep at peace. After putting my portfolio on the platform, I for one could go on a vacation without checking BTC every day (ask my girlfriend about it!). We wanted to make a platform that my mom can use, or my uncle who always wanted to cash-in on all the crypto action. I always worried about people who wanted to invest in Crypto but didn't understand trading. They don't understand that they can potentially loose their savings. But now I have a tool that I can recommend to non traders without worry.
For what its worth, please be mindful that at the end of the day you are investing your savings in cryptocurrencies which are known to be highly volatile.That being said, BTC has also proved itself as the most profitable asset of the decade, even performing great in the face of a recession. You just have to know when to buy-in and hold for the long period and I think our tool can be great for that.
We are grateful that we started this journey. We are hoping you would join us too. You can apply to get an invite here botsfolio.com. If you know someone whom you wanna save from buying wrong entry into cryptocurrencies, please share the link with them as well. We also appreciate any feedback.