Investing in crypto coins has so far been a fun experience for me. The opportunities are endless this early in the process, so it can be overwhelming. I focused on the top coins like Bitcoin (BTC-USD) and Ethereum (ETH-USD), and I ignored the noise. We are free to make our own mistakes and learn from them. So far I’ve been lucky with nothing but wins with swing trading. But today I discuss my interest in investing in Crypto.com coin (CRO-USD).
I already hold some, but as a starter portion of a longer-term core position plan. At this point, I realize that it may become cheaper this year, so I am not calling a bottom.
My strategy this year is very clear, and I will share it with you today. However you must first shed your hangups against crypto if you have them. To do that, I had to control my natural aversion to change, especially when the assets are this wild. Prices fluctuate so much that opportunities for mistakes are plentiful.
The post that I shared late December brought 35% profits quickly. But if you didn’t book it, you are now sitting on losses. I held on to mine, but that was by design. I’ve already had two 30% winning runs with Crypto.com coin. This third order, as I noted earlier, is a starter tranche.
Invest in Crypto Coin for the Long Run
In my December article I discussed in details why betting on Crypto.com makes sense. My strategy this year is more from an investment perspective. I adopted the style that worked well for me with gold, which is to add some over time.
With crypto I have a few favorites, and CRO-USD made the cut. The pandemic reminded us that everything can change in an instant. Therefore we should have alternative electronic assets and transfer methods.
I treat crypto like an asset. I even transact in it with a few global partners. In my experience, it’s been a faster and cheaper way of moving funds electronically overseas. I definitely prefer it to my old ways of wiring through banks. For this, look into stablecoins to avoid the rapid fluctuations of the others.
Crypto.com is making a sizable U.S. marketing effort for ubiquity. Its app works, but is nothing special. I would even consider it clunky. Still, the demand growth must be exponential, so I commend them for handling it this well so far. Growing pains are real potential problem — just ask Peloton (NASDAQ:PTON). For that, management earned some benefit of the doubt in my book.
The success of the app should translate into the success of Crypto.com coin. If the company is this committed, then CRO should come along for the ride. After all, it is there to serve and support its platforms. Even after falling 60% from the highs, early investors are still enjoying profits.
I know not everyone can be an active trader, jumping in and out of positions. I did it, but I also see the benefit of accumulating the stuff over time. Just ask the early Bitcoin investors. For that purpose, there is no need to be surgical with the timing of the entries. But it is good to have a plan guiding us — a system if you will. I developed mine late last year from studying the Bitcoin chart.
The Nitty-Gritty Levels
Over the years, I’ve honed my charting skills, and it has now become an outright passion. From that, I saw the correction in Bitcoin forming months ago. And since BTC still is the chief coin in charge, I assumed that the rest of the coins would follow. That’s exactly what happened, and the correction is still ongoing. Bitcoin lost its footing and hit my first target near $33,000. That’s when I deployed my first batch of Crypto coin.
Now BTC is trying to recover the neckline it lost, but it has so far failed. If the second phase were to come, it would be from losing the Jan. 24 low. Oddly enough that was an important low for stocks too.
If it can do that, then my next move will be to add batch two when BTC falls to $28,000.
It sounds ominous, but it is healthy for a stock to revisit its breakout. BTC did that in December of 2020, so it could use a retest this year. Therefore, I expect it to eventually add my third batch of Crypto.com coin when that happens.
If I’m wrong and Bitcoin recovers $46,000, then I would already be long with an incomplete position. But you won’t hear me complain about profits. Besides my goal is to accumulate over time. I am sure there will be more opportunities down the line.
This year, I happen to have a plan from specific chart lines. So far it’s playing out almost to a tee, so I will stick with it until it’s over.
Let me leave you with the suggestion to look into crypto in general. I promise you that the toughest part is to overcome the innate skepticism. Luckily the investments in it can be tiny. Unlike with equities, small accounts can do it all. I’m confident that the skeptics will eventually come around. They did it with getting on the “internet super highway” and it will happen here.
Not all coins will survive, but the process will. The blockchain technology and the electronic transfer of wealth will be the way the world works eventually. The transition is happening now and crypto.com coin is playing a big part. As long as the company is in business, owning CRO is a viable investment thesis.
On the date of publication, Nicolas Chahine held CRO, ETH, USDC and SOL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.