If you’ve been around just before the 2017 bull market, you’ll understand what I mean. There were many renowned industry “experts” that spawned out, predicting on how Bitcoin will go up to 20k, 30k, or even 50k, just like how it is now again at 2021 bull run. People were also FOMO too, buying bitcoin with their stimulus money, a big portion of their savings, took loans, etc.
But guess what, after just 2 months from the 2017 ATH, BOOM!! Bitcoin went from 17,000 to 7,000. Ever since then it took 3 years to get back to 17,000.
So here’s what you need to know:
1) DCA, or Dollar Cost Averaging. I can’t stress how important this technique is, it doesn’t matter how the market moves, spread and average out your purchase, it’s ok to do so even in a bull market, and it’s even better to do it during a bear one.
2) Set your expectation right, imagine what if the price dropped 60% in 2 months, what are you gonna do? Do you have the patience to hold it for another few more years? Will you hold on to the impulses of selling it just because you momentarily think the price will no longer go back to how it was?
3) Never invest until you need disrupts your daily life!! If by buying Bitcoin makes you change a certain life style, then forget about it. What I meant is prioritize your money on your career, health and family first, never skip spending on something that would help in excelling your job, never skip taking those vitamins, gym subscription and never stop showing love for your families and friends, buy them something will yea.
4) Emergency Fund. Nope, self explanatory, and it’s NON negotiable.
So there you have it, I ignored 4 of these key points during 2017, I did the absolute opposite of what I listed above, and the entire year 2018 was miserable for me.
It’s easy to say or yell HODL in the internet or in real life, it’s really easy to do so, but when shits hit your life and you need money for important stuffs, that’s where you’ll be tested. Do not be the old me, be smart, thanks for reading and happy investing guys.