Crypto Strategy: Temporary Arbitration

Something is missing from the cryptocurrency market, and it's not fancy algorithms or pretentious marketing jargon. It is not customary to think about time here. Market fluctuations are just a sight for onlookers. Assets rise in price or fall - Twitter explodes. Technical analysis turned into picking up rumors and reading a site made by marketers.

In a world where time is money, time remains the last frontier

Time is somehow forgotten in the confusion. They have forgotten that the market is not immediately ripening, that it is impossible to simply jump into the future - for innovation, energy, as well as trials and mistakes, are needed, and only in this way do breakthroughs move the industry forward. We are crawling - this cannot be called either running or flying. Little by little, step by step. Yes, it seems that sometimes we are retreating, but this is only an illusion - even if the market stands still, progress continues.

Value

The industry goes forward regardless of market behavior, simply because the best minds of the planet flow into it. Smart people are interested in solving complex problems, but there are many of them.

Neither cryptocurrencies nor ideas die - they belong to all participants in the process.

Since the creation of bitcoin, the cryptoindustry has been getting better, more interesting, more complicated every day, there is no rollback. Even break-ins, bankruptcies and fraud are opportunities for growth, including for security innovation. We are moving forward based on mistakes.

Wonderful future

We hear all the time that in the future the value of cryptocurrency will only grow. Although no one can predict the value of a specific asset, we can be confident that, indeed, the level of achievement in this area will increase: the infrastructure will be more reliable, innovations will have a greater effect, and the flexibility of solutions will increase.

Thus, we cannot talk about the value of assets, but we can talk about the value of the movement as a whole.

Time

Awareness of what is happening gives a lot of opportunities. The optimal strategy in cryptocurrency should take into account time. Most tactics deal only with rising or falling uncertainty in the short run, but this has nothing to do with the distant future. In the coming years, the market will mature and grow, and we can be sure that growth will not be avoided in the long term either, and it is from this that we should proceed in our investment strategy.

Short-term uncertainty should not affect our confidence in the future.

Neither the progress nor the spread of new technology does not occur instantly - they are built gradually, brick by brick. Imagine an unfinished house. Yes, now there is little benefit from it, but sooner or later it will be completed, you just need to wait a bit, and the whole will become much more important than just the sum of its parts.

Portfolio rebalancing

Time-optimizing strategies are few, and the most famous of them is portfolio rebalancing, a long-term strategy aimed at future growth.

Temporal arbitration - it's simple: invest, forget, rebalance. Different approaches are used to predict long-term growth depending on which trend we are dealing with, an upward or downward trend.

The idea behind rebalancing is that at the end of each time interval, we re-allocate the portfolio according to the original goal. Assets that showed good returns during the last period in the next period may be a bad investment. Conversely, even if the asset has not previously made a profit, you need to take into account the general long-term upward trend.

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