I know that there's a lot of panic out there right now in the crypto market. You may be asking, why is Bitcoin down to 8,000? Did you bet on the wrong horse or get in at the wrong time? Is it time to abandon ship? No! I don't think Bitcoin is going to go down over the long term and believe it will come back even stronger with new all-time highs by the spring and summer months. Why?
Weak hands will never make a dime. Weak hands will always play it safe--if you want a completely safe bet, go open some mutual funds! Don't sell your bitcoin at a drop of a hat. Hold for the long run or until it hits a price point you're happy with. And always have an exit plan before you buy into a position. Know at what price you'll want to sell and how much you'll sell. I personally sell-off in increments of 20 percent, 10 percent etc., keeping the rest for a long-term hold if I firmly believe in the tech.
I won't sell out because it's down 50%--or even 99%! I hear time and time again: I need to minimize my loss! But whats the point if it's like a rollercoaster and it's just going to go up again? I'm willing to hold because I believe in this technology and can see a world that will use cryptocurrencies on a regular basis. I think of investing this way--if my Crypto is down 75%, why would I sell it at a value I don't think it's worth just to avoid a so-called loss? I would rather hold as there no doubt in mind it will go back up and reach all-time highs again! Remember, this is an extremely volatile market, which is why I don't expect the market to have moonshots and positive numbers all the time--it needs some healthy down trends to become stronger.
"Buy when there's blood in the streets, even if the blood is your own." (Baron Rothschild) Meaning, buy on the dip (in other words, Black Friday deals).
Look at the charts--there's good information there. Last year Bitcoin was only 1,000 dollars a coin! Let that sink in for a moment--so from February 2017 to December 2017, bitcoin increased from 1,000 to 18,000 a coin. Have you ever seen a stock increase anywhere near that much in such a short time? So when I see Bitcoin go down I think to myself, it's still worth way more than it was last year, and I believe it still has room to grow. I also pay attention to what the other currencies are doing. What's going on with Eth, Neo, etc? Their performance indicates the bitcoin market will recover. Also, keep in mind the historical data--for the last few years, cryptocurrencies have had decreases every January due to a number of contributing factors, including bad news, hacks and the LunarNew Year, only to see price increases afterwards.
Old money will always be scared of new money when new technologies emerge that threaten to disrupt old markets. I see this a lot now when I turn on the TV, or when one of my clients says--so did you hear about Bitcoin? It finally fell! They usually have inadequate knowledge and can't even explain what a blockchain is or how it works. And the news anchors have a field day saying they knew this was going to happen--remember, I told you so! I get it, they are just attempting to protect their own stocks, because if crypto performs well more new investors could enter the crypto market instead of the stock market.This is why I take what I hear from mainstream media with a grain of salt. Don't let them scare you away from your financial freedom and your love for new innovations that will shape the future!
Thanks for the read,
cheers, Jay
