Core Concepts behind CATS
Why was CATS created
Way before governments started getting interested in cryptocurrency, the team behind Crypto Statto and CATS quickly realised it was about gaining coins. Back then, just the idea of exchanging value quickly without middlemen quickly appealed. Everyone makes mistakes with cryptocurrency, we tried;
- Running miners on laptops
- Identifying early proof of stake coins
- Joining various sites where you exchange certain cryptocurrencies for big payouts
- Looked into the ICOs phenomenon
- Avoiding NFTs despite a vast amount of sound logic around some of them
- Looking into "pumpamental" coins
- Desperately trying to find places to buy Bitcoin
- Seen crackdowns on perfectly legitimate exchanges by governments
- Following Crypto YouTubers and others, before learning most of what many say is garbage
- Managed to avoid almost all scams - touch wood!
If our time existed again, with a little more foresight, we could be wealthy beyond all our wildest dreams. Some, maybe many achieved this - good luck to them!
Over time, after making many mistakes, it was clear that swing trading probably beat most other attempts to gain coins. True technical analysists and algorithms can pick potential massive gains, but over the long-term we don't seem to have lost many coins.
As governments became more interested in controlling this amazing technology, it was clear that a more professional approach to accumulating cryptocurrency was needed with potential to generate cashflow and if within an onerous jurisdiction - pay the dreaded taxes.
It is also clear that many of the alts we accumulated way back probably won't surpass their all-time-highs. A sensible exit strategy is what pushed us into building CATS.
The one thing we know is that if, at, the 2017 pre all-time-high, one had just bought a single Bitcoin they would not have as many Bitcoin. They would have a single Bitcoin.
Some core philosophies behind CATS
This is not financial advice. Please do your own research or better still, seek financial advice.
Stop buying cryptocurrency with large amounts of cash
There is nothing wrong with buying cryptocurrency with regular amounts of cash, but dollar cost averaging does not always lead you to being on top.
We are not here to claim that we are geniuses and did everything right. However, in most circumstances - once one has put a certain amount of cash into an asset that should be it.
Thinking long-term
This software may make you money, but at many points you won't, many will think paying to run software does not make sense when the market is falling. Yet, it is far cheaper than putting cash into coins that fall significantly to never return.
Knowing when to exit
Fear is the most petrifying of emotions. Decision paralysis causes us to do nothing. Sometimes, in the case of the HODLERS, their decisions can be proven correct. We have seen 80% drawdowns on Bitcoin, we have seen swings to 50% above all-time-highs.
The truth is - nobody knows when to exit. The main reason is due to Fear of Missing Out (FOMO).
As the price rises, we are confounded with two main fears;
- What if I sell too early?
- What if this is the all-time-high and the price collapses?
Most either sell too early, or don't sell at all.
How CATS can work with this
One way to do this is to simply decide on what you would be happy taking off the table and laddering these trades to sell a certain amount once the trade hits a certain price. By setting buys at lower prices, you can buy back some more but withdraw capital.
The Snake's Head Hypothesis
When we look at Trading View, CoinGecko or various asset level prices on different trading exchanges, we see assets going up and down all the time. Where Bitcoin stays flat, we may find certain coins stay flat also, and that some coins move up and down against Bitcoin.
(Forgive the use of the name "Snake"), it has a lot of connotations but it is the best analogy I can come up with.
I have often thought of Bitcoin as the head of the snake. As the snake moves, the head leads, the neck, body and tail follow but perform a wave movement behind it. For the snake to move, we observe oscillation as a sinuous movement. The key observation is that at certain points the head is lower than other parts of the snake, sometimes the mid-section is higher than a later and earlier section.
The key point is that the experience of cryptocurrency is that at many times, they appear to lag and lead the head. This is the principle behind our automated trading software.
How CATS can work with this
CATS permits swing trading between coins with the aim of accumulating more. These relatively small movements over the short to mid-term should see more coins being accumulated.
"The Trend Is Your Friend Until The End"
Despite there being clear times where the "Snake's Head" appears to hold true, there are some terrible long-term drawdowns that appear as if they will never recover. Some coins have never returned. Yet still we hear many on social media espousing that these coins will beat their all-time-highs, that they will 10x from here.
How CATS can work with this
Use automated swing trading to retain balances of alt coins, but move capital into other coins. Over time, you may be in a position to have gained both coins or at least kept enough of the original stack and moved some capital into another asset. Some may decide to make this exit in fiat, or to multiple targets.