In life we often regret lost opportunities, things we could have changed and everything we think we could have done differently or better; but it turns out that life is governed by time, and time does not wait for anyone or anything.
Time is a titan
And since time waits for no one, neither do opportunities, hence we must be attentive to the opportunities for success that are presented to us in order to take them on time and not regret it later. This is especially true when it comes to economic success; because it is useless to later regret the opportunities that were presented to us and we did not know how to take advantage of them.
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For example, today I could regret not having bought Bitcoin in 2009; or in 2014; but it turns out that it would be useless to do so. In 2009, I didn't even know about Bitcoin, as it was just in its infancy, but in 2014, it was already established, and still, I didn't make the movements I should have taken back then; that is, I did not buy BTC.
As I already said, it is useless to complain now, because simply, for whatever reason, the fact is that I did not invest at that time and it is no longer relevant now in my present.
Focus on the present
I know that I could have taken the opportunity to buy Bitcoin many times in the past at prices that today seem like a dream; but it no longer has any importance in my present; other than as learning what I should and should not do. In other words, this learning taught me that I should focus on the present to be aware of opportunities in the market and what I should not do is be lamenting the past that no longer was.
Yes, I would probably be a millionaire by now, if I had done things differently in the past, but it doesn't matter; because the experiences and learning that I have achieved during all these years also count. And because of that learning and my experience as a trader, I have discovered that when the asset is solid, serious and has liquidity (as is the case with Bitcoin); then the market will give almost infinite opportunities for us to obtain profits and wealth if only we are attentive and we act when it is necessary to do it and in the right measure in which we must do it.
Dollar cost averaging
One thing I've learned over the years as a Bitcoin investor, is that it doesn't matter what price you buy it at, as long as you manage to average it through the Dollar Cost Averaging. So, if I buy Bitcoin at the current price (which at the time of writing is 21,709) and then Bitcoin goes down, and I buy again, and then goes higher than the current price and buys again; everything comes into play in an average price compendium; as a result of that, if you notice, I'm always buying Bitcoin at a price below the present price.
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Technically, to explain it in a simple way for those who don't understand it (that is, for those who don't know what dollar cost averaging is) let's put it like this: Suppose I buy a cryptocurrency that is worth just $10. I withdrew $10 and bought one unit of said cryptocurrency today; but tomorrow the cryptocurrency drops to $5; So obviously, I lost $5 relative to what I invested yesterday, right? That is the first impression it gives; and a novice trader, or someone scared by FOMO or the impact of the crash can sell automatically and take the loss of $5 fearing to lose more in the process.
The impulse of most people, as I said, in such cases is to sell at all costs so as not to continue losing with the fall; but what if instead of selling, I take another $10 and buy more of the cryptocurrency in question. It will turn out that now I have bought 2 units for the same amount of money with which I was able to buy only 1 unit before; and now I have 3 units of the cryptocurrency in question.
What is the price at which I have bought all the units of the cryptocurrencies that I have bought from yesterday to today then? Well, the price would be the average of the purchase. That is, it will be as if he had bought the 3 cryptocurrencies at a price of $7.5 (because (10+5)/2= 7.5); it is that simple.
Well, that is what the Dollar cost average consists of in broad strokes, so it does not matter if Bitcoin goes up or down, or how much it goes up or how much it goes down; What we always have to take care of is having sufficient liquidity to take advantage of buying whenever we see fit, and averaging in the best possible way, the best price we can based on what is happening in the market.
As can be seen, thanks to the dollar cost averaging, price and time play in our favor to give us almost infinite opportunities for profit in the market; that is very clear. I hope everything I have explained is clear.
What do you think about the topic discussed? Please comment.
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