Use Cases for Momentum

Use Case: Staying Exposed for the Long Run Without getting Wrecked

You believe in Bitcoin and Ethereum long term. You’re here for the next cycle, the one after that, and the one after that. But simply holding means enduring brutal drawdowns along the way. Every cycle, Degens watch their portfolios drop 60-80%, only to recover years later—if they have the patience to hold through it.

With Momentum, you can stay exposed while automatically reducing risk during downturns—no selling, no taxable events, no panic decisions.

Key Uses for Momentum

• Long Term Position Management

  • If you’re holding for years, you don’t want to manually manage exits and entries. Momentum does it for you staying in trends, reducing risk in downturns, and re-entering when conditions improve:

  
• Alternative to Dollar Cost Averaging (DCA)

  • Instead of buying blindly at fixed intervals, Momentum dynamically increases your exposure when trends are strong and reduces it in downturns, making it a smarter way to average into the market.

• Tax Efficient Profit Taking

  • Traditional profit-taking means selling and triggering taxable events. Momentum rebalances automatically, avoiding unnecessary sells and keeping you exposed without incurring capital gains taxes.

• Best in Trending Markets

  • Works best when markets are moving either up or down.

  • Captures upside in bull trends and minimizes damage in bear trends.

  • In range-bound markets, it may underperform compared to passive holding.

When to Enter?

• If you're bullish on BTC or ETH but don’t want to suffer full drawdowns.

• If you want long term exposure but prefer an automated, adaptive approach.

• If you want to build a position over time without DCA’s inefficiencies.

Momentum is for those who believe in the long-term value of their assets but want to stay exposed in a way that makes sense.