The Crypto Bandwagon is a 6-month cryptocurrency trading experiment, based on short-term momentum investing, greater fool theory and, as is ubiquitous in the cryptocurrency world, “jumping on the bandwagon”.

Bitcoin consistently made headlines in 2017 thanks to its wild run from under $US1,000 to more than $US14,500 by December 29, skyrocketing more than 1,300%. Cryptocurrencies have anecdotally turned millennials into millionaires, and it now seems that every man and his dog is prognosticating “the next bitcoin”.

The Greater Fool Theory states it is possible to make money by buying securities, whether overvalued or not, and later selling them at a profit because there will always be someone (a bigger or greater fool) who is willing to pay the higher price.

Momentum Investing is an investment strategy that aims to capitalize on the continuance of existing trends in the market.

The Strategy:

  • Every week, I invest $500 in 2 new cryptocurrencies based on the largest 7-day % increase.
    • To qualify, the cryptocurrency must be in the top 150 by market capitalization at the time of purchase.
  • Sell both cryptocurrencies at the earlier of:
    • A. The end of the week; or
    • B. A 25% stop-loss triggering.
      • E.g. $500 is invested in Bitcoin at $10,000. A stop-loss will be set at a 25% price distance ($2,500) of the current price. If the price of Bitcoin falls to $7,500 a market sell order will be triggered.
  • Sale proceeds will be kept in the portfolio balance and $500 each will be invested in the next 2 cryptocurrencies the following week.


This is not investment advice. Cryptocurrencies are inherently extremely risky. Never invest any more than you’re willing to lose.