Should I be selling my bitcoins now or be buying?
I am glad for the advent of crypto assets (as I like to call it). It has brought the global money market closer to me in a very special way. It is a huge step from what we used to have and I can understand those who find it difficult to understand. I hope to give you some clarity in a few points about it especially if you are confused whether it’s on a bubble or not.
Point 1: Crypto assets have not changed the rules of investing
This is a very important point. Investing is still investing. Gambling remains gambling. If you are buying based on speculation and hoping the value rises, you are gambling. Whether it is stocks, bonds or any other securities, gambling is not good. If you can’t sleep well over the decision, then it means you gambled. Investing means that you have a failsafe, some form of fallback in case of losses or diversified portfolio.
Point 2: Play for the long term
I know it feels good to make a lot of money in a short time. Some even use that to measure their smartness and financial literacy. This is wrong. You are only money-smart when you make money when everybody else is losing it. The only way to guarantee real added value in crypto is to be in it for the long term. And of course, you must have a strategy not emotion or speculation.
Point 3: There will be ups and downs
This is something you must come to terms with. The value will go up and it will come down. Good investors find a way to make money in both scenarios. So, whether it is in a bubble now is irrelevant.
Point 4: Buy when you have a plan, sell when you have decided in your plan
Those who will make substantial losses in crypto are people who don’t have a plan for their investment. How much you bought bitcoin or ripple is irrelevant. What matters is your plan; what do you plan to do with what you bought? Emotion and speculation will help you run into losses. A good plan will tell you what to buy and when to buy.
Point 5: Distribute your investment properly
Can all crypto assets fail at the same time? Do the value of tokens affects the value of ether? What is the purpose of this crypto asset? How far can governments and big banks go against it? What rises when bitcoin falls? You need these answers and more to make smart decisions in crypto. These answers will help you spread your investments well.
P.S. I hope you’ve learnt something. Would love to see your comment