The bitcoin and crypto market is currently in a crab market. Meaning that it keeps going back and forth between upwards movements and also downward movements. All-the-while, staying in the same price range. Many people are complaining that the market has become boring and are wishing for any kind of substantial movement. Be it upwards or downwards. When I see these type of people complain, I always find it pretty amusing. After all, the quiet times are when you should be preparing and putting yourself in great position for the next time that things begin to ramp up. I understand that sentiment though. We have become an impatient society, and we all want to become rich overnight. I would be thrilled with that happening as well. Besides that, I remain extremely confident in the future of bitcoin, crypto and where things are heading towards. I'm in no rush. In fact, something interesting happened to me when I became more confident in bitcoin. I extended my timeline horizon. While it would be nice, I was no longer trying to get rich quickly. I was now in it for the long haul.
If you have true conviction in bitcoin and crypto, you should think the same way. If we all agree on where the prices of these markets are heading towards, why would we want that price movement to happen as soon as possible? We should be relishing and ecstatic that we have the opportunity to buy bitcoin, ethereum and others at such great prices. During the year there were many price predictions that had bitcoin going up over $300k, ethereum over $20k and the list goes on and on. We were all excited about this, and a lot of us kept buying these coins as their prices continued to go up. While we haven't hit those price targets, fundamentally nothing has changed. We will still reach those marks, it will just take a little longer than expected. If that is the case, we should enjoy this great opportunity to buy as much as we possibly can. Imagine being able to buy bitcoin at $3k again like you could during the covid price crash. In a few years time, we will look back at this moment and wish that we had boughten bitcoin when it was at the cheap price of $48k. We will wish that we would have boughten more ethereum at the cheap price of $4k.
As always, price predictions are merely that; price predictions. They may never come to pass, or they could. But remember this key point. Those price predictions that I mentioned above, those were the price predictions for this bull market. The cryptocurrency is still extremely young. Not only that, but if you look at the world right now, you'll see that everything is setting itself up perfectly for cryptocurrency to take center stage. If that happens, imagine what the prices of bitcoin, ethereum and others could be ten years from now and beyond. Again, you will look back on these current prices with deep regret. While prices are expensive for the average person to currently invest into these blue-chip coins and many believe it's too late to obtain life-changing gains with these coins. I completely disagree, especially if we move towards that crypto world that I was mentioning above.
So what can you do?
You need to take advantage of this quiet time period as much as possible and set yourself up for future success. When everyone stayed home during the covid lockdowns; the smart people were learning or studying new skills. They took advantage of this quiet time and were potentially able to level up once things settled down. You should be thinking in the same way during quiet market times.
While this isn't financial advice, but buying and accumulating as much as possible during these dips is a great way to build your portfolio. I was able to build a majority of my portfolio during the March 2020 Covid crash. Buying while prices are on deep discount is usually a good idea. This all boils down to your conviction once again. If you are bearish and believe that a bear market is coming, then it may not be a good time to buy. But if you have conviction, then it is always a good time to buy. Remember, even the people who bought at the market top in 2017, would still be up over 2x if they held onto their coins.
Next, build up your passive income streams. Using crypto lending and staking has worked well for me. As with buying coins and investing in general, don't lend out more than you willing to lose. My goal was to generate a significant enough of a passive income that I would be able to still accumulate a significant amount of crypto each month without ever needing to add my own cash for spot purchases. This would help me to accumulate even as the prices in the market erupt to the moon. With that said, I still am going all in with my spot purchases as well.
This is also a great time to put in the research. When prices are soaring it is so easy to get caught up in the coin of the moment, the meme of the moment or even the NFTs. This is the time when your conviction is made. Read the white papers, investigate projects and even learn general crypto basics. Look into projects and learn everything you can about them. Then invest accordingly. You never want to make your opinion based solely on what others are saying. This means you shouldn't be listening to the YouTubers who are paid to shill coins or have their own biases. That also means you shouldn't trust my writing solely as well. Each person has their own agenda, or biases which often depends on what coins are the largest in their portfolio.
Finally, if you have been stressed out from the crab markets, there is no shame in taking a break from the market. Of course I'm of the opinion that there are some amazing buying opportunities out there right now. But the worst thing that you could do would be to become so stressed that you decide to sell too early. If you need a break, take one. Be it a few days, weeks or even a month. Come back when you're ready.
With all of that said, I still remain very bullish on what is coming. If you have been into bitcoin for a while like I have, you will find it funny that people are scared about bitcoin when its price is at $49k. Remember, just last year it had dropped to $3k. And just a few months ago it was at $28k. People are a victim of the moment and are on too short of a timeline. Have patience, keep accumulating and HODL. It most likely will change your life financially forever.
As always, thank you for reading!
Crypto is still very young and is very best time to key in. I won't want to regret that I didn't buy enough AWC token now the price seem affordable. My target is to have enough AWC token to stake for my passive income both now and then. For info about AWC - https://atomicwallet.io/token