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The Donkey Theory
The Donkey Theory: It may not be the most expensive or attractive, but it gets you to your destination!
After my horrific week, I knew I had to get my shit straight, or I’d DEFINITELY lose all my funds by not learning from these stupid rookie mistakes. So I sat down and thought about what had just transpired and how I could AVOID it from ever happening again. It was rough going through it but it made me a better investor in the long run (or so I keep telling myself).
When I came across crypto as an investment, I was interested but did not put too much money in my initial investment (1st mistake). Mind you, it was scary, techy, and something I was not familiar with, but the reason I was attracted to it was because of the potential gains on my investment. But once you’re done freaking yourself out, it really is just a very serious game, in a sense.
One day while trying to figure out my next investment, I realized something; could it be that easy? I began to contemplate and weigh things out in my head, then on paper, and finally on a document. I had came to a conclusion, and the answer I had come up with seemed just too easy. The conclusion I came to: It’s all just a game (sort of), just like the game of life.
Different tokens & personal research
First off, in order to make significant gains, you need to have a significant amount of tokens. I’m not talking about collectively, but a nice amount in EACH token you are invested in. So each time the token(s) you invested in goes up a dollar, your gains in dollars depend on how many tokens you have. So I came to the conclusion it is best to hold either 50, 100, 500, or +1,000. In my mind, this is the how you really set yourself up to succeed in these crypto markets.
Secondly, it’s all about doing your own personal homework, research, and Technical Analysis (TA); NOT so much making a post on Reddit or a forum asking for strangers opinions and financial advice. People on the internet have no obligation to you and will more likely chime in and pump their own coins. After realizing this, I figured I needed 3 types of coins:
- Coins you truly believe in.
- Coins that can serve as functions and can draw you some decent gains.
- “penny stocks.”
I’m sure there’s a nicer, more concise way of putting it, but I wasn’t out to write an academic paper. I was getting my crypto strategy tight.
Clients & exchanges
Next, I went through and set up all necessary clients, so when I was ready to make a move, I could right away. All the appropriate tools would already be in place. This made things much more fluent and efficient, saving me time and headache, which is always a good thing.
Lastly, I signed up for an exchange, not Coinbase or shapeshift, but more along the lines of Bittrex and Kraken. I was limiting my options only dealing with the first two. By having a Bittrex account, I had access to a lot more tokens. From there, I just had to figure out the platform and get myself familiar with it, so when I was ready to make moves, I wasn’t wasting time on learning the platform.
Setting up my clients and getting on the right exchanges were extremely helpful in ensuring I wasn’t wasting time while trading. I could be ready when I needed to be, and it provided me with a different sense of security then I had before I made these moves to get my trading strategy pin-pointed down.
My theories about crypto trading
So now you have a little bit of context and my attack plan towards crypto, but you’re probably still wondering why I’m calling it the Donkey Theory. Let me explain:
The Donkey Theory is an idea I came up with to represent my current uphill battle with cryptocurrencies. If success was seen to be at the top of the mountain and I am just starting at the bottom, there is no reason I shouldn’t have an attack plan to get me to the top of that mountain. I always hear, “buy on rumors, and sell on news,” “if there’s blood in the streets, buy” and so on and so forth. So while I’m slowly making my way up the proverbial mountain, my attack plan is to take calculated risks, buying up tokens as those weak hands weed themselves out, and know, not every day in crypto land will be a positive day. I like to think, if it were that easy and predictable, wouldn’t everyone be in on it?
***This is NOT meant to be financial advice, Just my story***
If you missed Jordan’s previous trading tales, check them out here. If Jordan’s story has inspired you to try trading out yourself, check out our cryptocurrency and blockchain project pages. We also have a resource for different wallets, and securely storing your crypto. Check them out!