With so many new people coming into the crypto world, and many returning after getting torched in the last bear market, it seems like a good time to remind everyone of one simple strategy that has worked time and time again over the last 12 years: Stacking Satoshis.
So many of the new people are discovering the CoinGeckos and CoinMarketCaps of the world and seeing nothing but huge gains up and down the list. They become frantic that they're missing out on these gains while "everyone" else is getting rich around them. While there are definitely people who have made huge gains, the vast majority of the newcomers FOMO their way into things after they've pumped and then either sell at a loss when they dump, or else they see something else moving and chase after it, eating away at what little profit they've gleaned with high transaction fees going into and out of different things.
My advice to you all: stop the insanity and give yourself a break. Rome wasn't built in a day and you're not going to go from rags to riches in a day either. Take a deep breath and start with something you know you can handle.
First, you need to know this. Bitcoin is king of the crypto world. It was first and I believe it will continue to be the strongest of all the cryptocurrencies, dominating the market for years to come. It is also probably the easiest to understand and certainly the most readily available in terms of where you can buy it. Do yourself a favor and start there.
Depending on how much capital you are wanting to invest, you can do it a couple different ways:
- Either put in an initial amount and don't worry about the immediate movement of the price, or
- Buy a certain percentage of what you want to invest immediately and then add the rest at specific times until you have it all invested.
The first way obviously gives you the best return if it goes up right away, but will also cause you the most angst if it goes down. The second way gives you an opportunity to buy some cheaper if it goes down but still allows you to be ahead if it goes up. Completely your call. What comes next is more important in my view and that is.....
Stacking Satoshis
For those of you who don't know, a "satoshi" is the smallest unit of a full bitcoin. Bitcoin trades to the 8th place after the decimal, or in other words, to the 100 millionth of a full bitcoin. (0.00000001) It takes 100 million satoshis to equal one Bitcoin. That may seem like a lot (and it is) but with Bitcoin trading around the $50,000 level, $100 will buy you .002 btc or 200,000 satoshis (sats). Right now, a satoshi is worth a fraction of a US penny, but in a few years, there's a very legitimate chance they will be worth a penny or more. At that point 200,000 of them add up in a hurry.
This is why you want to stack as many of them as you can. While $50 here and $100 there might not seem like it will do you much good, an extra 100,000 sats here and 200,000 sats there could. In fact, it could be life-changing. If you keep the simple goal of "stacking sats" in mind, the crazy volatility of the markets won't get you down. If the price goes down, "Yay, I can stack more sats!". If the price goes up, "Yay, my stack of sats is worth even more!".
I've been a part of this cryptoverse for almost four years now, since Bitcoin $4000 back in September of 2017, and my biggest regret in not following my own advice. I stacked as many as I could from $4000 up to $20,000 and then I quit when it went back down. I didn't sell any of them, but I didn't buy any more. It wasn't until this last fall when it jumped back over $11,000 that I started "stacking" them again. And, I've been doing it ever since. I even bought a little the other day over $48,000. But if I would have been buying bits and pieces here and there over the last three years, I would have a very nice bag.
As it is, better late than never. I'm not worried about the now. I just want to have as many sats as I can five years from now.
So, with that goal in mind, I set up an automatic buy with an account and I buy a little every two weeks. I plan on doing it until at least BTC$100,000. If that takes 4 years, so much the better. More sats for me. If it happens sooner it will be hard to complain too much.
In the meantime, get your foot in the door and get some skin in the game. Then, if you want to do some research about all of the other cryptos in this space, do it. I have a few other coins/tokens with small investments I hope will allow me to stack even more sats in the future. But, at least get started with the strongest one first. Then, take your chances on the rest. And, my advice, regardless of what you spend on the altcoins, make sure you keeping stacking those sats. In my opinion, your future self will be forever grateful.
As always, this is my opinion, not financial advice. Cryptocurrencies can and do go up and down and you could lose all of your money.....