You all have heard the old adages "buy when there is blood... blah, blah, blah" or "Be greedy when... blah, blah, blah" -Benjamin Graham or Warren Buffett probably.
So why do the majority of people not do it? One word- FEAR! People are scared when they see the fiat value of their investments decreasing. Whether this fear is because the person's expectations of an Always Up market have been shaken, they are over leveraged, or are spending money they couldn't afford to lose is anyone's guess.
In order to combat the fear- we need to be greedy during market corrections. Greed and patience are the hallmark traits of a good value investor. Time in market has always saved the savvy crypto investor, so expand your view from the hourly, daily, weekly, or even monthly. Look at what is in store on the three and the six month horizon. If you are a true investor, look for quality projects with staying power and at the 5-10 year timeframe. Soon you will realize what a beautiful opportunity you have been gifted to grab my four favorite large cap picks at a discount.
The cryptoverse is ruled by the rise and fall of BTC dominance. Until it is decoupled you need to have Bitcoin as a stable in your portfolio. Currently there is both extremely bullish and bearish news surrounding BTC. The bullish news such as country wide adoption has caused little price action (yes we saw a bounce to the low 40s) to help push us back into bull mode of this market cycle. The bearish FUD has continued since April's ATH as countries, whales, and institutions are granted the opportunity to accumulate your bitcoin at cheap prices by driving you out of the market.
This week it is the ever present China ban FUD, but this is actually great as China will no longer have that carrot to dangle over the crypto markets in the future. The mining hash concentration in China needs to go elsewhere and it has already started. From CoinDesk: Chinese firm BIT Mining has already delivered its first batch of 320 machines to Kazakhstan after its Sichuan operations were suspended.
Next week it will be something else, but as an investor it doesn't matter. You need to be following what the whales and institutions are doing not what the "news" or corporate figureheads are saying. They are accumulating and you should be doing the same at these low prices. Currently flirting in the 29s on Binance as I write, I may have to press pause on this prose and go get some more.
My Portfolio: A few weeks ago I outlined a change in my investment strategy after realizing how disgustingly underexposed I was to the King of Crypto. Since that point my focus has been on stacking sats. I haven't reached my portfolio percentage goal yet, but I have managed to increase my BTC bag by about 35% and my total portfolio percentage by 5%. I have been buying, and buying, and buying. As long as it is below my target my price I will keep buying in bulk. I also keep my monthly DCA-buy in effect and will continue to do so no matter the price.
If Bitcoin is King, then ETH is queen. You need to have some of this sugar-momma in your portfolio. Ethereum has the largest adoption, most dApps, and is gaining more institutional money right now than Bitcoin. It is 60% off its ATH, EIP 1559 is coming, and ETH 2.0 will be here within the next two years.
If I need to sell you on Ethereum then you are either a Maxi or have been living in a cave. Get some.
My Portfolio: Eth is over 25% of my portfolio and I held over half of that from the 2017-18 cycle. I have not bought more ETH during this dip as it hasn't reached my target purchase price. NFA, but if I had bought a month or two ago at higher prices I would consider buying to lower my cost-basis and accumulate more.
Polkadot has not been this low since the middle of January 2021. Parachain auctions are coming this year which will unlock the true value of the network. This will also cause an enormous liquidity crunch and price action as DOT is staked towards those auctions decreasing the amount of available Polkadot to purchase on exchanges.
My Portfolio: DOT is easily one of my most coveted assets- it is basically my "One Ring". Buss loves the Precious Polkadot. I added another 20% to my bag this morning, because I couldn't turn down the hotness.
Cardano is back to its March 2021 prices. The next few months will see smart contracts live on the MainNet. Much like what we saw with the BSC/BNB crunch we will see with Cardano. Major positive price action will occur when all of the dApps go live on Cardano as ADA is needed for transactions. Get it while the getting is good.
My Portfolio: Cardano is 10% of my portfolio. Like Ethereum, it hasn't reached my target purchase price, but it is still down 60% from its ATH making it a great value buy.
These four coins represent my favorite picks for Value Investing in quality, long term big caps. In 5 to 10 years you will wish you hoovered these up at these discounts. (3-6 months if the bull cycle continues) Don't let your future self be mad at present you for missing out on these opportunities.
FUD abounds, be it China Mining, U.S. President Biden talking taxes, SEC talking regulation, etc. FUD is opportunity for the savvy investor, so take advantage of the mass fear and pick up some glorious sized bags of future wealth.
cover photo courtesy of: www.worldtopinvestors.com/