Industry players discuss the best crypto trading strategy for 2023
It’s day two of the Blockchain Economy Summit – the UK’s largest gathering of crypto companies and blockchain entrepreneurs.
Taking place in the heart of Europe’s financial capital – London, with two days full of Web3, NFT, cryptocurrency, blockchain and metaverse events.
With more than 3,000 attendees from over 65 countries gathered to join 70 leading companies in dialogue about the future of the blockchain and crypto space – crypto industry insiders revealed their opinions on how best to trade the markets this year.
How will the crypto market develop in 2023?
High profile algorithmic trading startup founder Daan de Rover (AKA Crypto Rover) reviewed the market outlook for 2023.
“[We] can see that $25,000 for Bitcoin is really the level to break,” Rover said.
“we tested $25,000 and this was the level we couldn’t break – now we’re retesting it – and actually we’ve already fallen back to $23,000 – so $25,000 is the level to break.
“What I don’t like about this market right now … in the short term we can clearly see that we’re creating a rounded top structure … we can probably see a pullback right now.”
But the prominent trader saw reasons to be cheerful on the road ahead.
“If you look above [the resistance level] $25,000 to $29,000 is an extremely low volume range,” Rover added.
“So if we break above $25,000, it could go up to $28,000-$29,000 very quickly, but the question really remains can we break above 25,000? And where is the market going in terms of inflation? Because that’s really a big driver in the market .”
Daan also touched on the recent industry narratives that theorizing the next bull run may be driven by eastern economies.
“You think it’s a bear market until you go to Dubai … it’s like a bull market all the time because everyone is still putting effort and time into crypto,” Rover said.
“Crypto is so alive in Dubai… you can buy or rent your house with USDC, you can buy a car with crypto – you can do everything with crypto in Dubai.
“There is so much money in that market and the Saudis still haven’t even entered this market yet”.
The best way to research a crypto investment?
Crypto Flus Josh Moden – Founder of CryptoBusy – broke down his approach to performing due diligence on projects. Developed, he claimed, from a partnership with the Coin Bureau’s former head of research.
“To do due diligence, start by contacting the company and talking to the team – [you] want to know who is behind this coin,” Moden said.
“Any coin with an anonymous founder or anonymous team – you’re asking for trouble.
“Volume is very important [for altcoins] you have to have enough liquidity… and coupled with that are the exchanges that are on – which says a lot about the coin – where is it listed? Is it on an exchange that is credible?”
Jordan Kerridge – Founder of Crypto savings expert – added that a key area to look into when performing due diligence is project financing.
“From my side [my primary research] is funding – the first thing I look at is how much money someone has raised and then you ask them how much they have left,” explained Kerridge.
“And you’d be shocked how many people had their entire company’s funds in FTX… I know of at least 100 different projects that had more than 80% of their funds in FTX.
“[And] this is why due diligence is so important – you could end up getting cut by someone who bites”.
Best Crypto Portfolio for 2023?
Josh Moden explained how he is structuring his portfolio for the coming year.
“I’m dollar cost averaging in Bitcoin and Ethereum mainly, and some other top coins, but when it comes to lower value coins…I’m waiting for them to show me the way with price action,” Moden explained.
“I’m waiting for a technical sign on this [low cap] the coin will rise – volume plus [technical] structure – because these investments can be very lucrative but can lose 50% in two days”.
As for Crypto Rover – now an industry veteran – he explained how he is adjusting his portfolio to a more conservative risk tolerance.
“The majority of my portfolio is Bitcoin and then 40% is altcoins – I’m mainly interested in Bitcoin as I don’t have to take any major risks,” Rover said.
“And my strike is to get out of the market for the Dollar Cost Average when we start to break the All-Time High for a period of about 12 months.”
