"Is it still worth investing in Bitcoin, now that the prices are so low?"
That's a question I get asked a lot. I have a few counter questions to that:
- "Would you rather buy when prices are high?"
- "Isn't it great that you're getting an 80% discount now, compared to December 2017? Eighty percent!!"
- "Do you believe in Bitcoin and that it will go up to $20,000 again, or even just $7,000?"
The people who ask me the above question, are people who have...
a) no education on Bitcoin yet
b) no experience in investing yet
Which is - let's face it - most people! It was me until only a few years ago, too.
Investors, who truly understand Bitcoin and its potential, are HAPPY every time the price drops.
Why? Because they get to buy more, at a lower price.
Imagine two people who both bought Bitcoin at $1,000.
One is an experienced investor, who studied Bitcoin and knows enough about our current money system to understand what kind of revolution and solution Bitcoin represents.
The other one knows hardly anything about it and just followed the hype and thinks this is the financial opportunity of a life time. (He's probably right, but...)
...then the price drops to $500.
The experienced investor is happy, because now he can get two Bitcoins for $1,000, while earlier it was only one.
The other one panics and thinks he lost 50% of his money. He blames himself and the people he listened to, and he quickly sells, to prevent losing even more. He now lost $500.
Guess who bought the Bitcoin he sold so low? The smart investor, of course! Because that's the investors goal: Buy low, sell high.
And that's how everyone else loses money...
Of course you have to actually be convinced that Bitcoin will go up again.
And that's where the education and time investment comes in. You need to get to a point of understanding what Bitcoin & Cryptocurrencies are all about, so you can make a conscious decision whether to invest your own money in it or not.
That conscious decision and reasoning will be your WHY.
It is what you will always remember when times are tough, and your portfolio might be in minus. That WHY will enable you to emotionally detach from your money, and prevent bad decisions.
DO NOT invest in crypto before you know WHY it is important to you and why YOU believe in it.
So, don't be lazy and ask other people to give you your WHY ;)
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About the author:
Anja Schuetz is a cryptocurrency mentor for absolute beginners, with specific focus on women and non-digital natives. She also consults as a Customer Communication & Operations Manager for blockchain start-ups. Sign up for her Free Bitcoin Beginner's Course and her Conscious Crypto Museletter here: http://anjaschuetz.net