So years ago, in April 2014, I bought Bitcoin at $400. A steal, right? Should have bought more probably. I was excited by what it was envisioning itself to be.
Wrong. I regret it. Well, actually, I both regret it and am happy about it. Because I sold it two years later in 2016 for about $100 more. I had no conviction, no spirit, no balls to HODL and stick with Bitcoin. And I literally paid for it.
Don’t even get me started on how much it hurt when the price jumped to $19k just a year later. Bloody hell. I had already gotten back into the game around August 2017 (bitcoin was about $4k at that time) and I had absolutely no idea what was coming at the end of the year. I don’t think anyone did. It is kind of annoying that a lot of people got into it because they thought they were missing out - I mean it’s okay if you want to join crypto but when you do with the explicit greed of making a quick buck in the hurried manner of 2017’s spike, you jeopardize those who are in it because they support the industry’s fundamentals.
Still, I think I should be grateful that I managed to make as much as I did from August 2017 to the next January. And I think the lesson from selling BTC for $500-ish has stuck well. I didn’t sell all of my holdings in the spike of 2017, but some and kept the rest, as that point I had learnt that the price was likely to rise. I think everyone should follow this sort of approach to investing.
I’m not the only one who has been through a few stupid decisions like this. You’ve heard stories of people losing their life savings because of the volatility of the market. Those are sad stories, which could have been avoided with a little more informed decision making. At the same time, if the investments were done correctly, the gains would have been incredible. The crypto market has far outperformed the stock market in the last 5 years.
The point is to be patient and HODL. If you believe in what the technology and industry is striving for, then you won’t be presenting yourself to the volatility and very easy chances of losing money. I didn’t really do so back in 2016 when I sold my BTC at a cheap ass price. You can actually quite Mr. Buffett (who *ahem* dislikes crypto quite a lot) when he said that the stock market is a device for transferring money from the impatient to the patient.