I was watching a great YouTube video by CryptoInvestor this week and he talked about this idea of a "magic number" when investing in Crypto. This magic number is the dollar amount you're willing to invest without getting anxious over said investment. It made me realise that I was over extended in my crypto investments. So I decided to sell 50% of my stake (luckily still at a profit, but not as much of a profit as I had at the very start of the year).
This is not to say I don't believe in the future success of crypto. I believe that this negative downturn at the moment is going to become a part of a regular cycle that we see in cryptocurrencies. However, I don't know exactly what will happen and neither does anyone else. I feel that being a little bit cautious is important when dealing with your money and that's why I've decided to downgrade my investment to something that is something more manageable emotionally.
I'm sure a lot of you are still heavily invested and that's awesome! I say if you're still in the race you might as well keep pushing it. However, I am weak and have decided to partially bow my head.
I wouldn't be surprised if there is another run mid year and I go full on into a bigger position. But at this point in time I'm not comfortable with my allocation.
I hope you can all figure out what your magic number is and have a suitably sized investment that you are not crazily, emotionally attached to. It's the best thing to do for your wellbeing.
Have a wonderful week.
