We Never See Nothing

MOON sentiment is rising to levels we saw in 2017, and I do agree that things are different this time, BUT as with any investment, you should always expect that ANYTHING can happen.

There WILL be another healthy sizable pullback. It’s a matter of WHEN, not IF. Could be today, tomorrow, next year or in 5 years. Odds are that it will be sooner, rather than later.

For the average person who can only spare a small percentage of their income, my advice would be to invest as below (or some sort of variation of the below):

1. Dollar Cost Averaging (DCA) – Pick your favourite exchange and set up automatic buys. Daily, weekly, fortnightly, monthly – whatever you can SAFELY afford. You don’t want to feel like you have to sell at some stage if you are running low on fiat. Set and forget. HODL.
2. Lump Sum Purchasing* – Take 25-50% of the amount you calculated for DCA’ing, and instead put it aside in an account for two reasons.
   1. Buying The Dip – Pretty self explanatory really. Buy when it’s cheap, to maximize your investment.
   2. FOMO Buying – FOMO happens to even the best of us, trust me. What matters is how you react to the feeling. In moments of FOMO (bull runs), you may be just a click or two from depositing ALL your money in, which could be disastrous if the price drops significantly. Instead, invest a smaller percentage of this fund to help keep your emotions in check.

*My personal rule with lump sum purchasing, is to always invest 50% of my fund, regardless of whether I’m buying the dip, or FOMO buying. If I buy at the All-Time-High (ATH) and it crashes, that allows me to buy the dip and average my cost down significantly. Vice versa, if I buy the dip and we see a bull run, it allows me to continue buying as the price goes up. By investing 50% of the value of my fund each buy, it typically never reaches $0.

Regardless of the above, the #1 rule is still to buy & HODL. As we continue to see ATHs, EVERYONE who has HODL has made money.