Don't Make This Bitcoin Mistake
Today we need to have a serious discussion. Most of my articles generally consist of me having a very bullish mindset towards bitcoin and cryptocurrency. If I'm not talking about bitcoin specifically, then I'm probably talking about making a passive income, striving towards reaching financial freedom. With that said, I am always consistent about one thing, in all of my articles. I'm always stressing the fact that the crypto market is constantly changing, and we need to be able to change with it as well.
But, we have to admit that the price action since we last saw bitcoin reach it's all-time high price last November hasn't been great. In fact for some, we could probably admit that it has been an extremely stressful, and emotionally taxing experience. And then we need to consider that it isn't only the bitcoin market that has been stressful for many recently. There is still the whole covid situation, where people were locked down in their houses for two years. On top of that, there is a war breaking out in Europe. That alone is tragic in itself, but then taking into consideration that there could be nuclear ramifications, and that takes the situation to a whole new level. If that wasn't enough, we also have record inflation going on around the world. Prices are rising, but people's salaries aren't, and this is making every day life more difficult for most. All of these happening with an impending recession on the way. Experts are thinking that this could just be the beginning of market turmoil, and that we need to brace ourselves, and set ourselves up with protection.
Scary stuff. That is a lot to take into account. For many of us, this is the first time that we have had live through these type of circumstances. What should you do? What are ways that you can protect yourself financially for the future?
Those are both important questions. But, I would argue that the most important thing that you need to be considering, is what are things that we should AVOID doing.
In times of panic and turmoil, that is when people are most likely to make quick, rash decisions, that they will come to regret in the future. I'm sure we have all experienced this in some way or manner, but on a smaller scale. For example, while the price of bitcoin is crashing, there are probably moments when you begin doubting if you were correct to be investing in bitcoin. At that moment, all you want to do is escape with as much cash as you possibly can. Your mind switches to a safe or protective mindset, and you want to take less risk, and have peace of mind. But an interesting thing tends to happen during these precise moments. Just when a large majority of people begin to sell off their bitcoin, that is when the price begins to recover. And not just recover slightly, but have a price bounce that is what we all dream about. In this market, that could equate to a $10k price candle upswing in a day or two. You have probably all guessed where this is leading towards. But, it is those same people who panic and sell off impulsively, that will also FOMO and buy back in as the price is pumping. Which leads to the famous phrase of buying high, and selling low. That is something that you definitely want to avoid doing.
As I mentioned above; the bitcoin market and the world news as a whole can be a pretty stressful experience right now. If that is starting to put ideas in your head that you need to sell your bitcoin, or that your just tired of looking into the bitcoin space. Don't sell, but by all means, take a break. In fact, that is something that I think we all need to remember. People who have been in the market for quite awhile will already know that crypto burnout is a real thing. It can be extremely disheartening to see your portfolio rise to incredible heights, where you begin dreaming about the house that you might buy, or how just maybe you will be able to afford to retire. Then suddenly, prices plummet and your portfolio seems to be at ground zero again. It's at that moment that many people take a break. While my first recommendation is that those price dips are the greatest times to be buying bitcoin. They can completely transform your portfolio. The price crash of March 2020 was the best thing that ever happened for my bitcoin accumulation. These current price lows can be the same opportunity for you.
But the worst thing that you can do, is to sell out of your position. After all, most of us believe that we are still extremely early to bitcoin and cryptocurrency as a whole. If we are early to bitcoin and it is price at around $38k, just imagine what it will be priced at when adoption really comes. Those price predictions of more than $1 million per bitcoin begin to seem not so outlandish. So to put it simply. Bitcoin is in my opinion, a once-in-a-lifetime type of asset, and you don't want to miss your opportunity on it. We have heard stories of people who had Apple and Amazon stock extremely early in their companies lifespan, only to sell early and miss out on incredible riches. Bitcoin and crypto, will completely outperform both of those companies by far. Don't miss it.
So if you are feeling stressed, take a break. The market will be here when you're ready to come back. If you're trying to transform your portfolio, remember to ignore the fear that you're feeling and know that these periods are great for accumulation. Things could continue to be bumpy the next several months. We will see extreme volatility to both the upside and the downside. Avoid trading with leverage, make sure your collateral loans are heavily backed or paid off. Then just sit back, and continue stacking SATS. In a few years time, you will be very thankful that you did.
How about you? Is the volatility of the market stressing you out? Have you sold? Are you still buying?
As always, thank you for reading!
