There Are Rules
After just listening to a fireside chat about Crypto scams it is even more evident to me that legacy finance individuals are absolutely clueless when it comes to Crypto. What I find even more disturbing than their lack of knowledge and understanding is the fact that they make no no effort to understand. It blows my mind how they make such bold claims simply based on a personal opinion. How can you confidently debate a topic that you know nothing about? The answer is simple, pride! Many of these financial personalities have been around for decades and have gained a relative amount of knowledge and insight when it comes to the legacy financial system.
In a form of arrogance, many simply transpose the authority they have in the legacy financial world into the Crypto world. In other words what many are telling their listeners and readers is that they know what they are talking about and that there is no need for any further information or data apart from theirs. Pride comes before a fall and if people choose to speak in ignorance, that ignorance will develop a life of its own and one day return to destroy their precious reputation.
Understanding Bitcoin is the starting point and most fundamental aspect to investing in BTC. Investing in Bitcoin without this understanding is foolish because your investment goals are simply based on speculation, void of any fundamental reason or fundamental catalyst for price appreciation. Studying and understanding the halving effect, as well as difficulty adjustments, hash rate and even on-chain data are imperative to gaining a reasonably sound understanding of this asset. BTC is not currency and yet it can function as currency, it is not gold and yet it can store value similar to gold. Bitcoin is also not property and yet is the purest form of property ownership the world has ever seen. Bitcoin is not a Retirement Annuity and yet due to the compounding price appreciation triggered by the halving every 4 years, it is a sovereign provision for retirement.
Bitcoin meets the requirements of multiple assets, in the form of one asset. Trying to categorize it as any of the above assets or investment vehicles would be inaccurate, as it is neither and yet all at the very same time.
Ignore The Rules To Your Own Detriment
Although Bitcoin cycles are not all exactly the same, they do however follow a very similar path. This predictability makes it vey easy to identify the best entry points and I do not mean price related entry points. Depending on how much time you require to build a position, you will want to start accumulating around the time of the halving. If you require a number of months to build your position, you should be looking to start buying a few months prior to the halving. An important aspect to remember is that the price only begins to react to the halving some months after the halving has taken place.
With that in mind, if you are entering with one lump sum, you would look at making a reasonably safe entry a few months after the halving. I personally never advocate going all in on any investment, or trade for that matter. Entering the market at this position in time sets you up for almost immediate gain and if you are smart, you will continue to add to that position on every significant drop. The recent dump from 64K has been a strangely long and boring time in the Crypto space and is rather peculiar. It is somewhat similar to having an ice cold day in the middle of summer! According to the time frame we should be hitting some serious upward momentum at this point. However, BTC has been hit by an absolute onslaught of FUD in recent months.
When you actually take these attacks into account and begin to realize the magnitude of these events, you will actually begin to realize that BTC is actually still very bullish. If this were not the case, Bitcoin would now be trading well below 20K, I am sure of that. I told people entering the market recently that they were entering at a very dangerous point, even though I do expect further upside.
The safest place to start a journey in Bitcoin is at the halving, plain and simple. Once price action has exceeded the previous all time high by more than 300%, it becomes more dangerous. Ignoring this basic Bitcoin wisdom has a great chance of getting you rekt!
Some like to sell their holdings as near to the top as possible, while others simply hodl and begin adding to their position again when the next halving commences. Whichever way you may decide to go, this is the smartest and safest approach to build your Bitcoin stack.
Volatility Is Simply Opportunity
For the long-term investor who is anchored by conviction, volatility simply provides further opportunity. On the other hand, those simply trying to get rich quick or pull off a big payday are actually infuriated by volatility. It is often these investors that sell the bottom, only to buy in again when prices are pumping alongside the the narratives of the mainstream media. These are the lazy ones, too lazy to do research or technical analysis but will rather take the advice of some news anchor that knows next to nothing about Bitcoin.
There are rules to the game of Bitcoin and if you break them, you will quite simply pay the price. Those who have made meaningful money in this market have for the most part done so because of the time they have spent in it. Time and knowledge, complimented by experience and the school of hard knocks.
This is my perspective, simply designed to stimulate your own thought process. Please do not consider this investment advice! Thanks for reading and see you soon!
