Crypto Trading – If in doubt, take the middle path

If you are involved in Crypto Currencies you know how much the market can be volatile, and spike up and down. At times so much that you feel you are in a roller-coaster.

For longer term investors this is just white noise, another yo-yo day, but most importantly an opportunity to buy great coins at discounted price. As even if we are getting used to buy lower and lower dips, and are asking ourselves, “when are these dips going to end?” all we are really doing, is dollar cost averaging on the way down.

In the long term, in a few weeks, months to 4 years, (depending where you are in the BTC and ALT coins market phase) we will be so glad we did purchase at all these lower levels.

As mentioned in a previous post, we have to focus on the amount of coins we have rather than the unrealized loss on the screen. This mind set change help me keep my sanity during the 2018 bear market when my portfolio value dropped from $256K to $37K, as most of my portfolio was in ALT coins and I was not aware at the time of the 4 year cycle, and its phases.

In the end 1 bitcoin, is still 1 bitcoin, and if we believe eventually with time that it will go up, then it becomes not a question of IF you’ll make great profits, but of WHEN. This is why, not only did I not sell during that last downturned (2018) but I kept using my crypto wallet as a saving account collecting more and more coins. I know a lot more about the 4 year cycle now, and I would use a hybrid strategy today, but we are all here to learn, and that for me was a big learning experience.

We know of course, that Bitcoin and the crypto market does not follow a set schedule, it does not look at a calendar and say: “Oh well is that time of the year, in the 4 year cycle, and I better start moving up!”; but we do know for certain is that once 210,000 blocks are mined in Bitcoin a new halving happens, which comes around every 4 years. This has helped many investors in having a better understanding about the different phases in the market.

Many that have entered the crypto space looking for a get rich quick opportunity are learning that it’s not all sunshine and rainbows (see video reference here 3 min long https://www.youtube.com/watch?v=D_Vg4uyYwEk or meme attached) , but at times a hazardous terrain, full of unexpected surprises, a forging of the self and even if at times tough, a great learning experience. The winners in the end are the one that can take the hits, and still stand up and weather the storms of life.

Bear markets, corrections and retracements have stronger moves because FEAR is easier to manipulate than GREED.

When the market moves sideways and you are undecided on the direction the market will move the best things to do is to wait until a clear trend is established or dollar cost average.

When the market is in a downtrend, and I have doubts, I either wait for a confirmation or sell half and keep half, so that if I am right or wrong, I have not liquidated all of my potential profits and not risked all of my potential funds.

As a long term hodler, you can also make the choice of just staying put, as the number of your coins has not changed.

Of course none of this is financial advice. Just my way of dealing with the crypto market.

You see when we are scared, when we are anxious, stressed or terrified, we start to see only the tree and forget the forest, the bigger picture. We need to look at the tree in front of us (current risks) but also have an idea where we are heading, or our long term goals (the forest).

So for now, review your strategy, think about what is right for you, for your risk profile, for your mental state and balance and for your long term financial goals.

I wish you all the best

Stay strong, be patient

Much Light