As many of you know, I believe in long-term hodling of cryptocurrency. My investing philosophy is simple: Pick the good cryptocurrencies, accumulate (buy when prices are low), and wait. Wait for the marketplace to go bullish and then sell or shave off the top when the prices are high. Take profit. But this investing philosophy does involve patience.
We have been in a bear market for quite some time and many investors (usually the new and inexperienced) lose patience … and confidence. This is a mistake. Patience is a requirement in cryptocurrency investing. To look for and expect instant profits will place you in the losing category and riddled with frustration.
Adjusted Bitcoin Buy Order
In this bear market, I am in the accumulation mode. All of the cryptocurrencies in my portfolio, I buy more of when the prices dip. If the price of any of my cryptocurrencies goes above the price-level I purchased them, then I can shave off of the top and take some profit. The key is knowing at what point do you ride that price-wave to take profit. This is not easy for anyone to do. You could just pick a price-point that you want to sell and just do it. Do not beat yourself up if the price continues to go up and you say to yourself, “If I had only waited a few more days, I could have made more profit.” This can work in the reverse: You can wait and the price-action goes down and you do not make as much; you could even lose.
With Bitcoin, I have adjusted my buy-order-price from $2600 to $3400-$3500. When Bitcoin gets down to this level, then I will accumulate more of it in anticipation of the next bull-run when it comes. No need to second guess myself on the buy-order price I have set for myself.
When The Nex Bull Run?
While no one can know for sure when we will come out of the bear market and go bullish, I do not believe we will see it in 2019. I sense a lot of downward activity in the marketplace coming and that downward activity is a perfect opportunity to buy and accumulate.
I believe the next bull-run will be selective. Investor-lessons were learned in 2018 where many lost a lot of money by purchasing junk cryptocurrencies at dirt-cheap prices hoping the marketplace would go bullish and they profit. This did not happen.
I believe one’s portfolio should be selective. Purchase only cryptocurrencies that have a proven track-record and those that have been around for a while. Typically, anything in the top 20 is safe investments for the long-term.
I am comfortable with my portfolio as it stands now. I believe in the next few years head, it will serve me well.
I am patient.
Remember, do your research, ask questions, and invest only what you can afford to lose.