The crypto bull market appears to have been reignited and prices are finally starting to go back up again. If you survived and held onto your coins throughout the dip; congratulations. It is times like those that will challenge and test you mentally. You will begin questioning if you were potentially wrong about your assets, the future of the market and also your financial situation. Did you waste all of your disposable income on something that was potentially just a fad or a bubble?
Of course the answer to that 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 moves towards being fully digital as well. Many of us who are extremely bullish on bitcoin, ethereum and many other coins were able to take advantage of the recent price dips and grow our stacks much more. But, as I mentioned, prices have begun to appreciate again. Coins are becoming much more expensive and that means it is more difficult to accumulate as much as you were able to in the past. But has it become too expensive to buy? Would it be better to wait until another massive price drop, or until the end of the bull market to resume buying?
Those are very important questions to think about. I would assume that most of us here are trying to get ahead in life by investing into crypto, and hopefully obtain life-changing wealth. No one knows your finances better than yourself. In a perfect world we would all love to perfectly time the market by 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. A reason for this is the FOMO and greed that each of us have. We always want more and more. For example, a person may have $200 to invest into bitcoin, or anything other coin. The coin that they're interested has been dropping quite significantly. It has reached a price that they would have been thrilled with just a few days ago. But now that the price is dropping, they are hoping it will drop further. And then the price begins to recover. The person has become greedy though, and they are expecting the price to drop back to the lows it was just at. But it doesn't, and instead keeps rising. As expected, the buyer missed that great opportunity.
The same can said when dealing with all-time high prices. Last year as bitcoin was approaching it's previous all-time high price of $20k, and finally would surpass it. At the time there were many people declaring that bitcoin had become too expensive to buy. That it surely would drop back to $10k. These people said that they would sit out the potential upcoming bull market and wait until the bear market to buy. The problem is that we never saw those prices again. Bitcoin kept rising and rising and never looked back. During the summer bitcoin did in fact drop down to $29k, but it was still much higher than that expected drop to $10k. If you had stopped buying last few, you would have missed out on a lot of buying opportunities. Those opportunities while appearing expensive at the time, now seem very cheap.
This is the approach that I decided to take before the bull market began. I have full confidence in the future of bitcoin, ethereum and a few other coins. I felt I had very good idea of where I expected the prices of those coins to go up to in the future. That is how I determined that I would continue buying no matter what. I was going to continue going full throttle into my crypto investing; never taking my foot off of the gas pedal. Yes, this is simply called dollar-cost-averaging. Something that I have always been doing. Investing a significant amount with each of my paychecks. Something that many of you most likely do as well. But as the prices of cryptocurrencies balloon up significantly, it can be quite easy to become less willing to put money into the project. This is why you need to find projects that have a very good future, that you can depend on, that also have great potential. This is why I have the investing strategy that I do. Yes, I am a self-admitted bitcoin maxi, but I still like other projects. I am a big fan of Ethereum, Polkadot and a few others as well. I continue to invest into each of these heavily.
While continuing to purchase heavily during the bull market can be risky, especially when the blow off the top of prices does eventually happen. Always remember that time in the market is better than timing the market. Even if you bought bitcoin right before the huge drop in 2017. If you just kept holding the coins, you would be greatly in profit today. That is the constant story in bitcoin. The price has only been higher than today's price only 1-2% of bitcoin's life. That is why I continue to invest heavily. Up until this point, it has been one of the best decisions that I have made.
How about you? Is cryptocurrency becoming too expensive for you to continue investing heavily into? Which coins have you been buying recently?
As always, thank you for reading!