It is very important to follow a discipline with investment and if followed then it can turn out to be a great decision that can also be much more profitable. We all expect to buy at the low price and say at the high but the question is how we are going to determine that the price we are buying is the lowest one hence we need to follow a disciplined approach. Probably doing the investment through dollar cost averaging is the best strategy I believe because this way we can keep the average buying price too low. I follow the same because there are certain benefits that I feel are very good for me. buying more when the market is down is always a great idea and the current situation is a good example where we can see that the Bitcoin price is hovering around twenty-five thousand U.S dollars.
Market is Bearish
The current market sentiments are bearish where the bitcoin price is approximately twenty-five thousand us dollars at present however we know that it is time high price was almost 70k US dollars. It is difficult to determine even now whether the current price is the bottom or if we are going to see another bottom for Bitcoin hence buying through a disciplined approach that can be followed through DCA is a good strategy. I invest in Bitcoin every day through DCA and whenever there is a dump of 10% Or more than I add a lump sum to the investment. This is a method that I follow to buy more at a lower price and this way my average buying Bitcoin price is quite low. It is important to have a profit booking strategy in place but I believe now is not the right time to book profit because if you do then you are not going to make good money out of the investment.
Consistency and Disciplined Investment
Some people think that when the market is down then we should not be part of it and look for another option but when it is up then it is the right time to make money however I think the other way round. I believe that we should buy more when the prices are on the lower side because this can help us generate more profitability. It is always recommended to do the research and study before doing an investment and once you do then I think later on the investment journey we should not be worried about it as long as things are going as per the plan.
When it is time for us to build then we should focus on the same and during the bull run, there has to be some profit booking strategy. We need to differentiate between buying and selling and having both at the same time can be a very risky game because that is what traders do and I'm not a trader. I believe that holding can be more profitable in the Crypto market and daily trading is very risky so I just stay away from this part because I am not good at it. I do buy crypto when I see a good dump in the price but that is also for the long term because the short term is a highly risky investment and I just try to avoid it. I'm not good in technicals and I believe more in the fundamentals when it comes to investment. If any project or the coin is solid in its fundamental then I can invest after going through a thorough study but here also my strategy will be for the long term which is going to be at least one year or more depending upon the market situations.
My Strategy
Currently, my strategy in the market is to buy and hold. It's very simple and I just follow the same and even I will be following the same unless there is a bull market. It is expected that we are going to see a bull market in the year 2025 which is approximately two years from now and I am ready to hold till then if required then I can do even more because it is for the long term and holding is not an issue for me. the good thing about long-term holding is that we have enough passion and any sort of delay cannot create problems for us but with the short term, this is difficult.
I am working on building my portfolio and I expect that the coins I am investing in will bring more profitability in the next cycle however is still my major holding remains in the form of hive tokens. diversification is important I believe and I have done it but I trust more on the hype than any other cryptocurrency excluding Bitcoin as its a king.
Thank you