As part of our interview series Trading Crypto to the Moon, this month we switched it up a little and interviewed one of the best traders in the crypto universe, @Cryptopathic. “Path” has over 162,800 followers on Twitter and is not only a legendary crypto trader but also an avid collector of digital items, including NFTs.
Read on to learn more about Cryptopathic’s trading plan, investments and market overview, and follow him on Twitter for his insights on the crypto market and NFTs.
Interview with Cryptopathic
- Please introduce yourself. What do you do for a living? What do you like to do in your spare time? What are your hobbies?
Hello :) I’m @cryptopathic, a trader and more recently a collector of mostly digital items. I’ve been involved in cryptocurrencies since 2013 and am very passionate about the future of web3 and the metaverse; I think this industry is part of a larger online & generational zeitgeist that crosses over with macroeconomics and anthropology; how people value digital things compared to how much time they spend on them is a large chasm that is being bridged. NFTs are a more recent passion of mine that has brought a lot of new attention to crypto, and personal sovereignty through these decentralized systems is something that I think will change the world.
2. How long have you been trading, and how did you learn to trade?
I first bought Bitcoin in 2013 and started trading altcoins frequently later that year. I am entirely self-taught, learning from experience and mistakes.
3. Do you trade any assets besides crypto?
I have traded other collectibles (CSGO skins, TCGs, occasionally traditional asset classes) but am mostly focused on crypto.
4. How much of your investment portfolio is allocated to crypto and how does your portfolio distribution look like?
The vast majority of my net worth is in crypto, probably north of 85% now. I diversified significantly after the last cycle, but despite this my crypto investments have outpaced them and have ended up very heavily weighted again.
5. Can you tell us about your trading strategy or trading plan?
This year most of my alt/nft trades span a few months and will be closed out 10–100x; being early to things I like with decent size and just letting the winners run is a great strategy. I also have large sized high conviction investments on ETH and BTC I don’t really plan to close out without significant fundamental changes. I will occasionally take shorter term trades in more liquid markets if I see there is momentum that can be capitalized on easily.
6. How much do you generally risk per trade and how do you decide on the position size?
<1% for some NFTs/fun DEX stuff with no due diligence. 1% for seed investment or riskier/illiquid trades. 3% for long term altcoin trades I have conviction in. 5–10% for various leverage trades. These percentages were larger in the past but I now reserve a lot (variable) for LP, liquidity mining, defi/stable farming and NFT funds. The rest is long term holds in ETH or btc; ETH makes up my largest position.
7. What indicators do you use, and which time frames do you usually trade?
The only indicator I use is 4h RSI — buy when oversold in an uptrend for BTCV (or other very liquid assets). This has a very high hit rate. I trade daily/weekly timeframes, or lower when the price is very volatile/high volume.
8. What are your preferred exchanges for trading?
Bitfinex is the most reliable by far for spot trading. I struggle to recommend others, though I have not used FTX much I have heard it is the place to be.
9. Do you have any specific targets this year? How do you plan to achieve these goals?
I’m advising for several different projects but am currently working on NFD and Cryptotrunks. I want to continue developing these into social tools for the metaverse and carve a meaningful spot in the space for them to thrive in the future.
10. Do you think we are done with this bull market, or its yet to continue into the end of the year or early next year? What is your exit strategy for your crypto portfolio for “the end of this bull market” if we’re still in it?
I think Bitcoin will continue higher for a while, and altcoin/NFT strength will kick back in significantly in a few months. I do believe we are in a supercycle of sorts, which means I’d rebalance some on extreme moves but not completely exit the market ever.
11. What advice would you give to new traders?
Do not use high leverage or borrow a significant amount of money to trade. You can lose both money and time in trading if you do it poorly. Make sure you are aware of the timespan of the trade — decide if it is an investment you believe in or something you just want to flip, and stick to that. Do not let losses run.
12. Any last tips, words of wisdom? :-)
Up only :)
A huge thanks to Cryptopathic for sharing his insights and dropping priceless knowledge! Follow Cryptopathic on Twitter at https://twitter.com/Cryptopathic.
Stay tuned for Crypto Trading to the Moon Episode 6, coming soon!