The Unique CORE 3 Crypto Portfolio “HODL, TRADE & THROTTLE”

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Bitcoin provides an excellent example of why many investors combine long-term holding with other investment strategies. Imagine buying Bitcoin at $16,000 and selling it at $42,000. Locking in that profit would certainly feel like a great decision. However, Bitcoin later continued its rally, reaching a new all-time high of $126,198.07. This is a common situation in the cryptocurrency market. Many investors take profits too early and later regret missing a significant portion of the upside. The lesson is not that you should never sell, but that relying on a single strategy often leaves money on the table. That is precisely why I developed the CORE 3 approach. Rather than choosing between investing and trading, I divide my portfolio into three equal parts: HODL, TRADE, and THROTTLE. Each serves a different purpose, allowing me to benefit from long-term market growth while actively managing risk and capitalizing on short-term trading opportunities.

Understanding the Core 3 Portfolio Mechanics

The CORE 3 Crypto Portfolio is a well-balanced investment strategy encompassing three keys to cryptocurrency trading: HOLDling, Trading, and Throttling. This diversified approach allows me to maximize its potential returns while minimizing. In this article, we will delve into Crypto and provide valuable insights for crypto traders, explaining them individually.

#1 HODLing Strategy

HODLing, from the term “hold,” refers to buying and holding cryptocurrencies for an extended period. This Strategy is based on the belief that the value of cryptocurrencies increases over time. By identifying promising projects with solid fundamentals and a clear vision, investors can build a HODLing portfolio with potential gains in the crypto market. For example, Bitcoin (BTC) and Ethereum (ETH) are popular choices for long-term HODling due to their widespread adoption and solid track records.

#2 Trading Strategy

Trading a CORE Crypto Portfolio involves actively buying and selling cryptocurrencies based on short-term price movements. Traders use technical analysis tools, indicators, and trend lines to identify entry and exit points. Successful traders often rely on solid risk management techniques, such as stop-loss orders and proper position sizing. It is important to stay on top of market news, developments, and trends to make informed trading decisions. If you are a beginner, please start by reading about how to get started with Crypto trading.

#3 Throttling Strategy

The throttling Strategy balances the throttling and trading approaches and periodically rebalances the portfolio. It involves taking profits from successful trades and reinvesting them into promising long-term projects. Throttling helps maintain a diversified portfolio and mitigates risks associated with extreme volatility. Additionally, it allows capitalizing on term trading while still benefiting from potential growth.

The Allocation of the Core 3 Crypto Portfolio

Now that we understand the strategies, how should I distribute my portfolio? What distinguishes each strategy?

1. 33% HODL – One type of investor is known as a “HODL” investor, who tends to follow a predictable and low-risk investment strategy. They typically purchase a cryptocurrency and hold onto it for an extended period without making significant changes. They might only sell a coin if they lose faith in its potential. In their free time, they spend a lot of time researching and learning about which coins have the most growth potential. Although they may seem boring as they prefer to stay in and read comics, they take pride in their valuable collection, which includes a copy of Superman Volume 1 worth over $300,000.
2.  33% TRADE – Meet TRADE, the counterpart to HODL. Like HODL, TRADE buys coins, but it’s a bit more strategic. When HODL buys 1 ETH, TRADE follows suit and buys 1 ETH. The same goes for 1 BTC and any other coins HODL acquires. However, TRADE likes to make moves based on its market assessment. TRADE is not always right, but it’s always looking for opportunities to grow its crypto portfolio. Unlike HODL, which is content to hold onto its coins, TRADE wants to be active in the market and make trades to increase its balance.
3.  33% THROTTLE – HODL and TRADE have a friend named THROTTLE, who is often seen as the odd one. He enjoys partying and having a good time but sometimes takes it too far. On occasion, they have had to rescue him from being passed out in an alleyway at 4 am. THROTTLE tends to act impulsively after drinking tequila and doesn’t seem to worry about the consequences of its actions.

The Trading Rules for the Core 3 Crypto Portfolio

1. When your original stake has doubled in profitability, it is crucial to withdraw 100% of your starting capital. For instance, if you invested $1000 and now have $3000 gains, it is time to take out your initial investment. This strategy guarantees you will not lose any money, as you are working with the market’s capital and your risk is zero. Thus, although the temptation may arise to go all-in and aim for riches, it is wiser to prioritize securing your profits first and playing it safe.
2. It’s important to diversify your holdings when investing in coins. Many people make the mistake of buying too few coins, assuming that the ones they have are the best. However, as the old Chinese proverb goes, “Water which is too pure has no fish.” Having a diverse portfolio not only provides superb stability but also offers the opportunity for a few big winners to offset any stagnating or declining coins. To start, I suggest having a minimum base of 20 coins, with each coin comprising 5% of your holdings. This is a good basic plan to build upon. You can also create another portfolio and experiment with different percentages and ideas.
3. When examining my charts, you may notice that I often scale in or out of a position at various price points or events. This technique, known as dollar cost averaging or scaling out, is a strategy I employ to boost my overall profitability. As someone with a background in technical analysis, I find this approach particularly well-suited to TRADE or THROTTLE. Give it a try, and enjoy the process!

No strategy is terrible results

These are the fundamentals of CORE 3. Some people may find this approach uninteresting or believe they can consistently outperform the market without a structured plan. However, inexperienced investors often overestimate their abilities and only recognize their mistakes after a significant setback. Time and again, I hear people regret selling too early, holding too long, or missing profitable opportunities altogether. A clear strategy helps remove emotion from your decision-making and keeps you focused on your long-term goals. As Sun Tzu famously said, “Every battle is won or lost before it’s ever fought.” The same principle applies to investing. Prepare your strategy before entering the market, and let it guide your decisions instead of your emotions. If you want to improve your active trading skills alongside your long-term investment strategy, exploring reputable crypto signal groups can provide valuable market insights, trading ideas, and educational content to complement your CORE 3 portfolio approach.