Anyone else notice a certain smell in the air recently? Is it bacon? Garlic bread?
No, it's just the smell of FOMO, now that Bitcoin has risen 33.81% in the past month to a current price of $36,650 USD per Bitcoin.
You may be wondering to yourself, why didn't I buy more when Bitcoin was at $17,000? $22,000? $30,000? Let me assure you, you are not the only one. To get you ready for what seems to be a potentially HUGE bull run, I offer the following 3 pieces of advice.
1. You are not too late
So you didn't buy Bitcoin when it was near its absolute bottom this past year - big deal! A common expression amongst Bitcoin enthusiasts is "ZOOM OUT". We are still a long way away from the current All Time High of $68,789. This means that in some ways, you're still getting a great price to buy today!
There's no need to be like Rachel McAdams in The Notebook and think that you've missed the party. Chances are, the price of Bitcoin is going to continue to rise. This means that even if you buy Bitcoin today, your odds of getting a good amount of Bitcoin for your money is still there. For example, let's look at some potential entry points (in USD)and how much BTC you would get.
$100 of Bitcoin purchased today gets you roughly 270,000 satoshis
But what if I wait and buy when it reaches its all time high again?
$100 of Bitcoin purchased at the all time high price gets you roughly 145,000 satoshis
Which brings me to my next point...
2. You don't need to go all in right now
As I just showed. obviously the better price you buy BTC at, the more satoshis you'll end up with. However, since none of us are capable of reading the future, there exists a great strategy we can use which doesn't require us to time the market perfectly. This strategy is known as Dollar Cost Averaging (or DCA).
Using this strategy, you buy Bitcoin at regular (or irregular) intervals and at a price that you feel comfortable with. For instance, you might buy $10 worth of Bitcoin every week on Monday morning. Or perhaps, you prefer to dump a higher amount in, at less regular intervals. This might mean putting $50 into Bitcoin at the beginning of every month.
Using this strategy means that yes, sometimes you will buy Bitcoin at a very high price. However, it also will let you take advantage of dips and gives you a less risky way of investing into BTC overall. Best of all, you can choose a sum that you feel comfortable with and the regular buying pattern may actually be something you end up looking forward to (I LOVE comparing the different price points I have purchased Bitcoin at).
Best of all, you don't have to worry about telling your friends and family all about how you just bought $1,000 worth of Bitcoin, right before its price takes a massive nosedive. Which brings me to my final point...
3. Don't tell anyone how much Bitcoin you're buying
While it is very tempting to spread the word about Bitcoin, resist the urge to tell people how much Bitcoin you have and how much you paid for it. This is good advice for numerous reasons.
a) Nobody likes someone who discusses how much money they have, whether it's fiat or Bitcoin
b) You make yourself a target. Even if it's just your friends or family you trust - imagine if Bitcoin rises to $200,000. I can already hear all the hands coming your way like Oliver Twist (please sir, can I have some more?). More nefarious actors can be even worse news in this event
c) Privacy and pseudonymity are some of the best aspects of Bitcoin - telling people about it takes that benefit away from you
d) Depending on your self-esteem and ego, if the price of Bitcoin goes down, everyone will think you're an idiot and laugh at you. Maybe this will bother you, maybe not - but why put yourself into that position needlessly?
As always, none of this is financial advice. Do your own research and enjoy the journey!
***If you enjoyed my article, please give me a follow HERE and check out my other articles for all things crypto!***
