Who bought high and sold low (to those who kept averaging in with regular consistent buys as Crypto markets move up and down)?
Who's happy and who's sad? Angry? Who's been holding off to jump into these markets and now sees opportunity? Who concludes this just isn't for them? Who's been buying regularly all the way down and will keep buying regularly on the eventual and [I think] certain trip back up?
Here's my general take. I don't look at my portfolios very often, neither the Patreon nor my personal. In fact, I haven't even looked at my personal portfolio in over a month. I don't care about the prices. If I think about it at all, which I try to avoid, then I think instead about other things in the history of human civilization that were true game changers.
So, for instance, suppose you're some dude or dudess way back in the days of farming and you notice that things like agriculture just getting started have great potential to feed more people, increase fecundity, and so on. You might want to accumulate land and livestock, unconcerned with what it might "cost" in terms of the work of homesteading, investment, occasional pillage, etc., understanding that no matter what, this is going to be big...at some point, who knows when.
Or, suppose you hear about this new technology called "money," and you might want to set your sights toward erecting a secure building, designing secure storage within it, and inventing innovative services. You'll call it "banking" services and then one day you realize you can actually print money, loan it out, and charge interest on it...
Suppose you saw the personal computers and internet coming, dispensed with your silly notions of flying cars and and instead made shrewd investments positioned to be the eventual "picks and shovels" behind these certain massive markets that change everything...
And the list goes on and on.
So here's the other part. I've generally advocated regular buys into Crypto since I began this gig. It's not to late to start and in fact, for many of you, it's an incredible opportunity. For some others of you, you're getting a gift of a great second chance. You thought it was running away and low and behold, it turned right around and has graciously come back to get you and take you along for the ride.
Let's just consider an example and you're welcome to scale it up or down depending on your means and risk tolerance.
Let's say you have the equivalent of a 401K, employer matching to some degree, and you you want to max that out for both the tax benefits and growth over a long time. So, perhaps you're setting aside $1,000 per month and I know many people of average means who do just that, and more. It's automatically deducted from paychecks so they never see it, never think about it.
So, suppose you modify your deduction down to $800 per month, with a firm commitment to invest the other $200 monthly into crypto (or, $400/$100, $1,200/$300, etc.—but I think 20% is a reasonable number). And because of volatility, you're going to buy weekly instead of monthly.
So you're going to buy $50 per week, each and every week. You could perhaps do Bitcoin and Etherium, or perhaps you want to add Litecoin. The split is up to you. I'm a fan, currently, of 65-70% Bitcoin and 30-35% Ethereum. Up to you.
To do that, what I do for my personal portfolio is a setup in Coinbase that's just on auto-pilot: every Monday, like clockwork. I use the ACH method, which means I'm buying at the price at that moment, paying a small fee, and I let it sit there in Coinbase. Then, about every month, I sweep it first to GDAX, then onto my wallet for no transaction fee.
But here's something else I do. Returning to the $50 weekly example (your amount may be more, it may be less), I'd do something like only do the weekly auto buys with perhaps $35...so say $25 to Bitcoin, $10 to Ethereum. The other $15 is a weekly automatic straight ACH to my Coinbase USD wallet where it accumulates for exactly times like these. Depending on how much, I might have been doing daily buys of BTC with all of that accumulation during this last week, so averaging daily with that money, as there's no question about this being a dip.
I also might—once I've used all of that set-aside money—modify my weekly buys up to the full $50 until such point as the market begins a firm move upward.
Now there's a simple and I think, foolproof strategy that anyone can do easily. And, over time, as you perhaps find spare cash or take on additional work to have more available funds, you can certainly get started with litttle plays here and there in wider alt and ICO markets.
...I was going to cover and comment on a collection of news article and general FUD I've seen over the week, but I'll save that for tomorrow. I am now pretty much back to full normal, perhaps like we're likely to see the crypto markets resume sometime soon.
Take care, be rational out there. Dismiss both irrational exuberance and FUD. Nobody knows, and this is why you need a sound and simple investment strategy you can be consistent about and that's founded upon the firm idea that Crypto is a true game changer and will eventually pay off for all of us who kept our heads on straight, maintained an open mind—just not so open as to let our brains fall out.
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