Anyways, don't be like Fred...
(Source: https://memegenerator.net/instance/53260925/bail-bondsman-this-is-fred-say-hi-fred)
Fred got into bitcoin in late 2017, he started buying as bitcoin was running up. Nothing big but a couple hundred dollars each time.
He knew that buying something going parabolic was risky so he made sure to keep plenty of cash ready for when it dipped.
And eventually it did.
After bitcoin peaked just under $20k, it started rolling over.
Fred was ready with a buy at $15k.
Then he was ready with a bunch of buys around the $10k-$12k area.
As those got filled and his investment grew larger and larger it got harder to move his cost average down.
So, he had to put more and more money to work.
As bitcoin continued to slide through much of 2018, Fred continued to pile more and more money into bitcoin.
Eventually as bitcoin finally started to bottom and turn back up in early 2019, Fred had got his cost average all the way down to $5k.
Not a great spot, but considering the amount of bitcoin he bought around $10k and $12k, it was quite the feat.
I won't say how much money Fred had in bitcoin at this point just in case he reads this someday and doesn't like me divulging such info... but needless to say, it was more than he was comfortable investing.
Anyways, bitcoin finally started to bounce off that $3k level.
It climbed quickly above $4k and was heading for $5k.
Fred got very excited that he was finally almost even on his money.
As bitcoin sputtered a bit and pulled back slightly around that level, Fred decided it was time to cut his losses.
He sold all his bitcoin for a small percentage loss but a decent sized dollar loss considering the size of his position.
I don't need to tell you that bitcoin went almost straight up from there and eventually tagged $13k within a matter of weeks.
Fred was not very happy.
To this day Fred keeps waiting for bitcoin to dip just a little bit more before he gets back in.
He has been scared ever since his first experience.
Now bitcoin sits comfortable over $9k and Fred is still waiting for that next dip...
Don't be like Fred.
(Source: https://imgflip.com/i/1kvblh)
Invest what you are comfortable holding (and losing) in bitcoin and let it ride.
The potential for exponential gains is here but you won't ever realize them if you are trying to time everything and trade in and out all the time.
Know what you own and the potential gains vs. the risk.
Fred didn't do his homework and was too scared to trade/invest in bitcoin properly.
Don't be like Fred.
Stay informed my friends.
-Doc
