The Crypto Advice You Don't Want to Hear
Humans are very stubborn creatures and there is nothing we are more stubborn about than money. That stubbornness is amplified even further in the cryptocurrency market. We all have dreams of hitting the lottery in this market, being able to finally become wealthy and obtain financial freedom. To be able to achieve that we all need a little bit of stubbornness. Being able to go against the grain, stick to our convictions, and ride the extremely volatile market that can be stressful enough to make even the best of us want to quit the market. In that case, being stubborn is a great tool.
But with money and especially with cryptocurrency, your stubbornness and emotions can become your biggest weakness. One of the easiest examples of this is dealing with FOMO (fear of missing out), and FUD (fear, uncertainty, and doubt.)
Last year when Bitcoin’s price was moving at a blistering pace up to $69k, many of us got caught up in the hype. Throwing more and more cash into the market at what ended up being the absolute peak. We were sure that Bitcoin was going to reach $100k, then $200k, and maybe go even further. Buying BTC at $65k would be considered cheap in just a few months. At that time, many veterans in the space were preaching that we should be taking profits along the way. We all knew what they were saying made sense, but greed got in the way. We wanted to hold on just a bit more to maximize our gains. Many people likely wish that they would have sold a portion of their portfolio back then.
However, that isn’t the crypto advice that many of us don’t want to hear. After all, selling to take profits sounds like a very rational thing to do. It makes sense, but greed just got in the way. Instead, the advice that we don’t want to hear requires us to do crazy things. To do something that will be painful and perhaps even mentally draining.
That piece of advice is that when prices of crypto are seemingly at their absolute bottom when all hope has been lost in the market when then crypto depression has set in. That is the moment when you need to invest even harder in the crypto market.
There is a misconception that crypto wealth is built during the bull runs, but that is false. The truth is that wealth in crypto is built when it actually hurts the most to buy. The moment when you seriously begin doubting crypto’s future, and why you are even buying this asset that continues to drop; is usually when the price bottom is near.
Those who kept buying during the bottom of the previous bear market in December 2018. The people who bought the covid crash dip in March 2020. These are the people who were the most successful last cycle. And the people who are continuing to buy today are the people who will be the most successful this cycle.
It is the hardest thing to hear when your portfolio has already gone down by 70% or more in the last year. But now is the time when crypto wealth is being formed. Research the market, build your conviction, make a plan and stick to it. Then go even harder when things seem their worst.
How about you? Have you been buying even more crypto during the last few weeks?
All views are my own and not financial advice.
As always, thank you for reading!
I save more than I buy because I have already completed my purchases. Now is the time to be patient and not wait for the gains to multiply!