The longer that you have been investing into the cryptocurrency market, it makes sense that you will learn much more than when you first began. You gain valuable experience and knowledge; learning things that you should and shouldn't do in order to be successful. For many of us, we learn those lessons the hard way by actually making those mistakes ourselves. The key thing is what you take away and learn from those experiences. If you don't learn anything and continue to make the same mistakes over and over; that is valuable time that is wasted. In fact, making the same mistakes over and over without changing your action is the definition of insanity.
Of course, most of us prefer to not have to go through those difficult bitcoin, or cryptocurrency experiences that might cause us to learn a difficult lesson that will help us to be more successful in the future. After all, wouldn't it be much nicer to learn the information that you need, skip over all those difficult times and go straight towards growing your wealth. That is what we would all like to do, but unfortunately it doesn't always work out that way. Just like when people decide to finally enter the cryptocurrency market, they need to have an open-mind, and be willing to listen to the advice of others who have gone through all of these experiences already. After quite some time investing into bitcoin, ethereum and other cryptocurrency; there is one mistake that I often see people making the most often. Because they are waiting for this event to happen, more often than not they end up missing out all-together. Is your mind open enough to listen to this critical piece of advice?
What could this critical piece of advice be? It frustrates me to no end when I see people "begging" for the price of bitcoin, ethereum or anything other coin to go down before they buy. There are times when that line of thinking might be reasonable; such as when the price of BTC or ETH has risen significantly in a very short amount of time. In those situations a slight pull-back could be expected. But for people waiting for the price of bitcoin to go to under $15,000, or for ethereum to go under $1,000; I have news for you. That will not be happening. You will forever be waiting for your dream price that will never come. You will then be forced to buy in at a much higher price.
The key thing that you need to remember is that the important thing isn't timing the market, but having time in the market. Just look at the picture above. Nearly every single year in Bitcoin's history, the yearly low price has risen. If you concentrate on the yearly low instead of the high it will make your life a lot more stress-free. I would even argue that 2020 was an outlier and the numbers would have been higher if it weren't for the covid panic. On average, there has been an annual yearly-low increase of 200% or more. With bitcoin now at a price of around $38,000, many people are now waiting and hoping for the price to return to under $30k before they will buy. But if we follow bitcoin's history, we could expect the 2022 low to be in the 50K upper range, with 2023 being in the 100k range. Of course some years go up more, and other years go up less. But the key point is this; the buying price range of 30-38k will seem quite small when bitcoin reaches a price of 150k.
The same was true last March during the covid price panic. Bitcoin dropped to $3,500 and then quickly went back up over $4k. But many people didn't buy, and instead were hoping that it would go back down to the 3k level. It never did. While back then, the buying price difference between 3 and 4k seemed quite large. Today, we would absolutely love a buying price fo 4k. That large price difference of 25% is minuscule today.
The same can be said for Ethereum. There have been only two years in which the price did not double at the very least. Again, 2020 being an outlier because of the covid price drops. While investing into the low-cap gems can be quite risky, because they are projects that are likely to not be around 10 years from now. But when investing into the Cryptocurrency blue-chips like bitcoin and ethereum, these are projects that you can feel more comfortable investing into. While the cryptocurrency market is extremely volatile, there are only a handful of days each year where the highest upwards movements take place. These are the days were most of the gains are made. If you are sitting on the sideline during these times, then you are missing out.
Of course I recommend to dollar-cost average. When investing into these two kings of crypto, never take your foot off the gas pedal. While it might not seem like it, we are still very early into the cryptocurrency market. Many hedge fund leaders and influential people in the market have been asked many times where they believe bitcoin, ethereum and cryptocurrency is at its life? They usually say that if it were a baseball game, we are at the first top of the first inning.
So get into the market. Find ways to earn even more by using your bitcoin and ethereum to earn a passive income. And then lock the key, or in this case make the thought of selling any of these assets a ludicrous and impossible thought. I have said this many times, but the name of the game is to accumulate as much bitcoin and ethereum as you possibly can. If you are able to do this, in just a few years you will be so thankful that you did. It will be life-changing.
How about you? Are you often trying to time the markets? What is the cheapest price that you have ever bought bitcoin and ethereum at?
As always, thank you for reading!
