What’s Next for Crypto Investors! How to make sure you are a part of it!
The chartists who use Fibonacci retracements and trends will be the first to tell you that prices don’t always follow their formulae.
There are just too many facets to investing – ones that you can’t know or predict. The most unpredictable of all is human nature. People don’t have artificial intelligence. We are, ultimately, creatures of emotion.
However, one thing that crypto investors do believe in: over time, prices should go up.
Putting your money in an investment all at once - believe it will only go up in value - can be a very profitable, but for those who are recent crypto investors, it has been a risky idea.
One of the safest ways to be a crypto investor is by following a practice known as dollar cost averaging. This allows you to enter into the market progressively. If the coin is going down in value over time, it allows you to accumulate more coins; but if it increases in price, the value of your portfolio also increases progressively.
Simply put: buying a fixed dollar amount on a regular schedule allows you to focus on accumulating assets on a regular basis, instead of trying to time the market.
Although tempting, now may not be the time to dive “all in” on Crypto.
Admittedly people will boo that statement, but what it really goes to is a recognition that different people have different risk tolerances. With dollar cost averaging, you remove a lot of the emotion, fear and stress out of investing because it removes (to a great extent) the daily or short term ups and downs in market prices, as long as you stick to a regular investment plan. And, allows you to profit from the long-term rise in market prices (as most everyone in crypto currency investing agree, in the long run most coins will go up in value).
So, don’t worry about the daily or even monthly variations in price. Just keep salting away what you can afford to lose and have faith in the long-term prospects of crypto currencies.
And whatever you do, DON’T give anyone 10,000 bitcoins for two pizzas!
DON’T DO IT!
