The crypto bull market seems to have resumed and prices are finally starting to move back up again. If you survived and held on to your coins through the plunge; Congratulations. Times like these will challenge and test you mentally. You will begin to question whether you were potentially wrong about your assets, the future of the market, and also your financial situation. Have you blown all of your disposable income on something that was potentially just a fad or a bubble?
Of course the answer to this is that cryptocurrency is not a bubble and most on this website would agree that it is indeed the future. The world has gone digital and it makes natural sense that money will move towards being fully digital as well. Many of us who are extremely bullish on Bitcoin, Ethereum and many other coins have been able to take advantage of recent price declines and increase our stacks much more. But, as I mentioned, prices started to rise again. Coins are becoming much more expensive and that means it's harder to accumulate as much as you could in the past. But has it become too expensive to buy? Would it be better to wait until another massive price drop or the end of the bull market to resume buying?
These are very important questions to ponder. I would guess that most of us here are trying to get ahead in life by investing in cryptocurrency and hope to gain life changing wealth. No one knows your finances better than you. In a perfect world, we would all like to perfectly time the market, paying the least amount of cash for the maximum amount of cryptocurrency. For most people, myself included, trying to time the market is not a good idea. The reason for this is FOMO and the greed that each of us has. We always want more and more. For example, a person may have $ 200 to invest in Bitcoin or another coin. The coin they are interested in is falling significantly. It has reached a price that would have been enthralled only a few days ago. But now that the price is falling, they hope it will drop even more. And then the price starts to recover. However, man has become greedy and they expect the price to fall back to the lows it was just at. But it doesn't and instead it keeps going up. As expected, the buyer missed this great opportunity.
The same can be said when dealing with all-time high prices. Last year, when Bitcoin was approaching its previous high of $20,000 and would eventually surpass it. At the time, there were many people who declared that Bitcoin had become too expensive to buy. This will surely drop to $10,000. These people said they would exit the potential upcoming bull market and wait until the bear market bought. The problem is, we never saw those prices again. Bitcoin kept going up and up and never looked back. Over the summer, Bitcoin did fall to $ 29,000, but it was still much higher than the expected drop to $ 10,000. If you had stopped buying the last few, you would have missed a lot of buying opportunities. These options, while seemingly expensive at the time, now seem very cheap.
This is the approach I decided to take before the bull market started. I have full confidence in the future of bitcoin, ethereum and several other coins. I felt I had a very good idea of where I expected the prices of these coins to go in the future. So I decided I would keep buying no matter what. I was going to go full throttle in my crypto investments; I never take my foot off the gas pedal. Yes, it's just called dollar cost averaging. Something I've always done. Investing a significant amount with each of my paychecks. Something many of you probably do too. But as cryptocurrency prices rise significantly, it can be quite easy to become less willing to put money into the project. That's why you need to find projects that have a very good future, that you can count on, that also have great potential. That's why I have the investment strategy I do. Yes, I'm a self-confessed bitcoin maxie, but I still like other projects. I'm a big fan of Ethereum, Polkadot and a few others. I continue to be heavily invested in each of them.
Continuing to buy big during a bull market can be risky, especially when prices eventually hit the top. Always remember that timing the market is better than timing the market. Even if you bought bitcoins right before the huge drop in 2017. If you just keep holding the coins, you will have a big profit today. This is the consistent story in Bitcoin. The price is only higher than today's price only 1-2% of the life of Bitcoin. This is why I continue to invest heavily. So far, it's been one of the best decisions I've made.
What about you? Is cryptocurrency getting too expensive to keep investing seriously? Which coins are you buying recently?
As always, thanks for reading!