I was wondering if you knew how I could reproduce what you did.
First of all, did you get the top traded currencies based on volumes ? Felt like it was it but not sure.
Also I was wondering how one would go about getting the top 10 traded currency of the month. Of the last 7 days is information that's given but of the last 4 weeks, I'm not too sure how to get that info.
Last but not least, let's say you buy the first month the top 10 crypto, the next one, do you add X amount you want to invest + sell the ones you bought the last month ? Or do you keep them and buy the next top 10 ?
thank you for the robust data analysis. really appreciate the outcome of your analysis!!!
I have checked the coinmarketcap.com, but I could not find the 'average monthly volume' in the 30 days volume filter, as presented in your spreadsheet. What I can find in the 30 days volume filter is the total volume in $ amount. For instance, as of 21 Oct 21 Bitcoin was traded $1,247,389,498,803 over the last 30 days.
These are all very interesting points that I had questions about as well.
I would imagine the approach that's suggested in the article is a "buy and hold" approach since towards the top of their post they have mentioned people losing all of their investment, which wouldn't apply - I don't think - in the "buy and sell each month" scenario.
That would be a really interesting analysis to do though, now I'm curious!
Hey, thanks for bringing it to my notice! Graham Stephan has featured Market Sentiment in the past, and these are two videos where he featured some of my most popular posts: https://youtu.be/VcldqSxfClU and https://youtu.be/7md7sdyCKos.
It's a quick overview that could help you decide which articles to dive deeper into! 😉
Can you share the same analysis but investing in the top-10 monthly by market cap? Does this change the results drastically? Thanks and amazing analysis!
Hey, thanks! The assumption was that the market cap and trading volume were roughly correlated. Might do an analysis by trading volume down the line, stay tuned!
I'm a full-on noob with regard to crypto's, but does this strategy imply that every month you sell the top-10 of previous month and buy the top-10 of this month (assuming that there is no overlap). Or that you just keep everything you bought and just invest a small bit every month in the current top-10?
I'm not sure if you've seen other comments on this article, but they mention in a different reply that you would only add to the position, not sell each month. Additionally, the point at which you start taking profits is entirely individual decision.
That is correct. There would be no selling till the point at which you decide to take profits, as it would complicate the analysis with tax considerations.
Hi Alex. Thanks for your interest. We don't have a paid subscription option yet. Do let me know which aspects of the newsletter you found most useful (and would consider paying for? 😉). Stay tuned!
I really want to thank you for all the hard work that you must have put into this analysis. I was looking for an improved version of the DCA strategy and this is it!
I was wondering if you included stable coins in the monthly top 10 or if you left them out. Personally, I don't know what the point would be, but I would really value your opinion.
Again, thank you so much for this priceless analysis!
I'm also a noob when it comes to crypto. I would just like to know if there's a method of knowing whether a coin is a stablecoin, or better, a list that includes all Stablecoins. I am planning to utilize this promising strategy in time for the upcoming new year.
Did your weighted investing based off of trading volume include buying Tether USDT?
Tether (USDT) is a guaranteed 0% return... its utility is being pegged to the USD and not changing in value.
Including this every month would have been a very large portion (between 35 and 70% of each months trading volume) of your monthly investment.
No Sane man would buy Tether expecting any kind of return, if you re-run the numbers you should find that the gap is far less than the 5000% youve claimed....
Why wouldnt you exclude this currency from your calculations?
I think Stephan forgot to clarify it in his video. Stablecoins are not considered in the analysis..if you check the infographic it's clearly stated that stablecoins are not considered in volume calculation and final investments.
This is very well insightful and timely. Have you ever attempted to replicate this strategy with value averaging rather then DCA? I have conducted some research and have found the returns to be rather favorable. However, this is in relation to the stock market and not crypto. Thanks
Late reader here. Did you build a system to automate the monthly investment process? It would also be interesting to see how this strategy did in 2022.
Hi mate, thanks for sharing awesome knowledge as usual! Did you ever consider to do a similar post with maybe the top 5 or 3. My thinking is (and my own situation) that many readers might have limited money to throw at the markets, like what i see is that there is a standart fee for buying on coinbase for example. So the smaller the amount you allocate to each coin, the bigger % you "lose/pay" to fee's. So if doing the same thing with top 5 would also create create upside, then readers could allocate more per coin for the same total sum, thus paying less in fees.
Have you considered sharing the findings of a similar strategy but the top 7/5/3 ish coins?
Would be nice to have a follow up on this piece as i see alot of attention for this article :)
Others tend to make weird predictions of coins being either store of value, or boom-and-bust coins. It would be best to find common patterns among multiple Bitcoin-parity Oscillators.
1. Would the idea be either to capture values of "rising" Oscillators, or exit early on Degenerators?
2. Can this strategy be paired with other high-security strategy into a more barbell-like format (see for example the memetic 1:99 portfolio with 99% cash or bonds or gold)
I was wondering if you knew how I could reproduce what you did.
First of all, did you get the top traded currencies based on volumes ? Felt like it was it but not sure.
Also I was wondering how one would go about getting the top 10 traded currency of the month. Of the last 7 days is information that's given but of the last 4 weeks, I'm not too sure how to get that info.
Last but not least, let's say you buy the first month the top 10 crypto, the next one, do you add X amount you want to invest + sell the ones you bought the last month ? Or do you keep them and buy the next top 10 ?
Hey Joel, Great questions!
Yes. I got the top currencies based on the trading volume.
You can go to coinmarketcap.com and inside their customize filter you can choose 30 days volume filter.
In this strategy, you will not sell. Every month, you just invest $100 and buy the most popular cryptos of the past month.
hi Market Sentiment,
thank you for the robust data analysis. really appreciate the outcome of your analysis!!!
I have checked the coinmarketcap.com, but I could not find the 'average monthly volume' in the 30 days volume filter, as presented in your spreadsheet. What I can find in the 30 days volume filter is the total volume in $ amount. For instance, as of 21 Oct 21 Bitcoin was traded $1,247,389,498,803 over the last 30 days.
Am I looking to the same data point as you?
Many thanks
I get the top 10 traded currency of the month in this link Joel: https://coinmarketcap.com/currencies/volume/monthly/
Good Luck!
i'm newbie in english so if i wrote some words wrong, sorry haha.
Thank you Pablo!
Thanks for sharing the link, Pablo :-)
You are welcome Alex!!
These are all very interesting points that I had questions about as well.
I would imagine the approach that's suggested in the article is a "buy and hold" approach since towards the top of their post they have mentioned people losing all of their investment, which wouldn't apply - I don't think - in the "buy and sell each month" scenario.
That would be a really interesting analysis to do though, now I'm curious!
Yes. Buy and sell would definitely be interesting but would be much more complex as short-term capital gain taxes would come into the picture.
Thank you for all the work you put behind this . It’s really appreciated
you are welcome :)
You made it on the Graham Stephan YouTube channel https://youtu.be/-Hbu2nKVJR0
Hey, thanks for bringing it to my notice! Graham Stephan has featured Market Sentiment in the past, and these are two videos where he featured some of my most popular posts: https://youtu.be/VcldqSxfClU and https://youtu.be/7md7sdyCKos.
It's a quick overview that could help you decide which articles to dive deeper into! 😉
Can you share the same analysis but investing in the top-10 monthly by market cap? Does this change the results drastically? Thanks and amazing analysis!
Hey, thanks! The assumption was that the market cap and trading volume were roughly correlated. Might do an analysis by trading volume down the line, stay tuned!
I'm a full-on noob with regard to crypto's, but does this strategy imply that every month you sell the top-10 of previous month and buy the top-10 of this month (assuming that there is no overlap). Or that you just keep everything you bought and just invest a small bit every month in the current top-10?
I'm not sure if you've seen other comments on this article, but they mention in a different reply that you would only add to the position, not sell each month. Additionally, the point at which you start taking profits is entirely individual decision.
That is correct. There would be no selling till the point at which you decide to take profits, as it would complicate the analysis with tax considerations.
Also, I can't seem to find a link to be able to become a paid subscriber. Would you be so kind as to share it, please? Thanks again :-)
Hi Alex. Thanks for your interest. We don't have a paid subscription option yet. Do let me know which aspects of the newsletter you found most useful (and would consider paying for? 😉). Stay tuned!
I really want to thank you for all the hard work that you must have put into this analysis. I was looking for an improved version of the DCA strategy and this is it!
I was wondering if you included stable coins in the monthly top 10 or if you left them out. Personally, I don't know what the point would be, but I would really value your opinion.
Again, thank you so much for this priceless analysis!
Thanks, glad you found it useful! I excluded stablecoins as they would not experience price fluctuations to justify investing in them.
Hello!
I'm also a noob when it comes to crypto. I would just like to know if there's a method of knowing whether a coin is a stablecoin, or better, a list that includes all Stablecoins. I am planning to utilize this promising strategy in time for the upcoming new year.
Thanks!
Hey Ryan, glad you liked the strategy.
All the major stablecoins are listed here
https://coinmarketcap.com/view/stablecoin/
You can check in this list to see if the coin you are investing in is a stable coin or not! Happy investing :)
I loved it, thanks for this content, great! I came here because of the youtube channel Mateus Rapini, he shared this amazing material.
Hi, I searched and found where we can see the 10 most traded cryptos, this is the link: https://coinmarketcap.com/currencies/volume/monthly/
Good luck for everyone!
Hi Market Sentiment.
Did your weighted investing based off of trading volume include buying Tether USDT?
Tether (USDT) is a guaranteed 0% return... its utility is being pegged to the USD and not changing in value.
Including this every month would have been a very large portion (between 35 and 70% of each months trading volume) of your monthly investment.
No Sane man would buy Tether expecting any kind of return, if you re-run the numbers you should find that the gap is far less than the 5000% youve claimed....
Why wouldnt you exclude this currency from your calculations?
regards
Henry
Hi Henry,
I think Stephan forgot to clarify it in his video. Stablecoins are not considered in the analysis..if you check the infographic it's clearly stated that stablecoins are not considered in volume calculation and final investments.
Cheers :)
This is very well insightful and timely. Have you ever attempted to replicate this strategy with value averaging rather then DCA? I have conducted some research and have found the returns to be rather favorable. However, this is in relation to the stock market and not crypto. Thanks
Yes. A lot of you were mentioning value averaging in my last post. I am looking into it. Stay tuned :)
Late reader here. Did you build a system to automate the monthly investment process? It would also be interesting to see how this strategy did in 2022.
Amazing article!
Hi mate, thanks for sharing awesome knowledge as usual! Did you ever consider to do a similar post with maybe the top 5 or 3. My thinking is (and my own situation) that many readers might have limited money to throw at the markets, like what i see is that there is a standart fee for buying on coinbase for example. So the smaller the amount you allocate to each coin, the bigger % you "lose/pay" to fee's. So if doing the same thing with top 5 would also create create upside, then readers could allocate more per coin for the same total sum, thus paying less in fees.
Have you considered sharing the findings of a similar strategy but the top 7/5/3 ish coins?
Would be nice to have a follow up on this piece as i see alot of attention for this article :)
Keep up the nice work.
Br Casper.
Others tend to make weird predictions of coins being either store of value, or boom-and-bust coins. It would be best to find common patterns among multiple Bitcoin-parity Oscillators.
1. Would the idea be either to capture values of "rising" Oscillators, or exit early on Degenerators?
2. Can this strategy be paired with other high-security strategy into a more barbell-like format (see for example the memetic 1:99 portfolio with 99% cash or bonds or gold)
https://woobull.com/the-two-types-of-altcoins-an-investors-view/ https://medium.com/dcresearch/altcoin-hypothesis-oscillators-and-denegerators-ccf42b88a821