BO$$ Profits = Staying Calm To Buy The Dips
No one likes market pullbacks!! The mere thought of watching your Blockfolio portfolio disappear as your Lamborghini Dreams (For some just pay the bills) get further and further away is nauseating. In actuality, its quite scary seeing it drop with every click of the refresh button if you are used to 5-10% traditional market corrections, but you have to keep perspective of the general market cycles of an absolute financial revolution in order to capitalize on the long term opportunity.
If past history can show us anything, large bumps in the short term charts are almost unrecognizable in the long term charts. We have seen many large retracements only to come back that much stronger. The market has pulled back significantly from over $800 Billion to $450 Billion, but just 45-60 days ago, we were ecstatic to be where we are today. If nothing has materially changed then this is only a bigger opportunity to add to positions and dollar coast average. New technologies typically run ahead of its true value and occasionally from time to time have large retracements only to continue its rapid ascension as adoption and time persist. Long term trends typically tell the story and in my opinion, only if they change should we start to worry as the great growth story of crypto is just beginning to unfold. There are many examples to point to over the years from an Investors perspective (Traders may see things differently) with Apple, Amazon and Netflix. People today are likely upset they sold or didn't buy Amazon at $100 or Netflix after $50 before the split. Here are some trends and long term business thoughts to consider:
#1 Is there a demand issue?
Answer: Last we checked, registrations for Coinbase, Binance, Bittrex, etc was moving so quickly that they had to halt registrations. More registrations are expected, especially after the end of Chinese Lunar New Year. Demand appears high.
#2 Is the industry growing?
Answer: Yes, Bitcoin, Ethereum, Litecoin, NEO, Steem and many other projects with real world utility are becoming more popular and more widely utilized. The introduction of new investment funds, projects, and entire industries in support of crypto with the constant mentioning on News Channels, in Magazines and all over the web is leading to growth across the board worldwide. Did all of these recent partnerships and projects start to fail before they even started? Not Likely, therefore the growth story is intact.
#3 Is the industry becoming more mainstream?
Answer: Yes, as mentioned above, it is constantly in the news media as well many major partnerships have been announced with companies such as: Microsoft, IBM, Deloitte, Western Union etc.. and growing by the day.
#4 Are there any company specific issues leading to the correction?
Answer: No, almost all of the coinmarketcap list is red across the board even for companies with everything going right for it.
#5 Will there be an Internet Bubble profit problem?
No! Not likely. Casting aside the many projects that are completely useless and likely to disappear; unlike the internet bubble where every company based its metrics on clicks or views with no plan for revenue, virtually every crypto project has a revenue structure or fee attached to it. The more transactions or uses, the more revenue generated. One also has to realize the value of the network and community that will keep the ecosystems together leading to long term reliability and reduction in risk. The potential volume for many projects around the world is staggering.
Overall, it appears we just ran to far too fast and are in the final stages of a healthy market correction. (60%+ retracement on some. Could go lower, but the risk to reward profile is looking better) The internet bubble burst at $7 Trillion compared to $428 Million and was nowhere near the global opportunity that crypto and blockchain presents. Crypto is worldwide, trading 24/7/365, and a complete disruption of the financial system and worldwide money supply while most internet companies were small USA based technology projects. If nothing materially changes, this recent correction will only lead to a greater long term entry point and an opportunity to add to positions. While I do not believe Warren Buffet is the poster boy for Crypto advice, he has more than proven to understand general market principles. He famously said "Be greedy when others are fearful and fearful when others are greedy" In my opinion, this would be a time to start laddering buys. If there was ever an opportunity to Go All In for the long term, at these levels, this might be it.
DONT FOLD JUST YET, YOU MIGHT JUST HAVE A PAIR OF ACES OR FLOPPED THE NUT STRAIGHT
This is not financial advice and just my opinion, but I believe and am personally invested as 2018 is going to be a great year and likely just the start of a major economic shift. As things progress, value will always be realized in the long term for BO$$ Profits!!!
I don’t think it is good idea to catch a falling knife. It never is. It will find its bottom like all asset classes do. Invest only when it stabilizes and on its way up. It’s ok to make slightly less profit then to try time the market and see your investment erode.
Appreciate the comment. I would 100% agree with you if we were near all time highs and not already down well over 50-60% This is why I mentioned the market is in the final stages of a correction phase and with all this red beginning to see greater entry points (Clearly no one ever knows the bottom for sure and final stages does not mean the end. We have a rough technical idea, but I am an investor with a longer term look, not a trader so we aren't looking at it differently) and is a good place long term to ladder buys. That means investing in projects that meet the criteria at a price that is well below what people were happy to buy it weeks and months ago. You can get a percentage at different levels up or down from well over 60% on most coins down from its highs which statistically is a great entry point. That is also with the assumption of being invested long term and if none of the general business trends are cracked. I agree you shouldn't try to catch a falling knife, hence why laddering now like it worked well when we did it with Neo at $13, $15, $17 and $20 when it was falling like the market now. We also did that with Litecoin when it dropped from $100 to $33 buying in at $40, $37, $33 and then went to almost $400. I believe that worked out so far. So yes you can not time the market perfectly, but you can ladder in buys (So you don't feel bad with one big buy and seeing it go lower) at good entry points like now and profit significantly in the future by doing so rather than waiting to catch things leveling out as many already bounced 20% off the prices I got this morning. Bitcoin $7540, Ethereum $750 and Litecoin $103.50. I'm comfortable with those as solid long term entries. The good news is with ladders you can climb them to higher heights. Upvoted and followed as we build this Steem community! 2018 is going to be a great year even after a rocky start. (Like every year the past few years) Value always comes back to what it should be in the long term.
$100bn wiped out of the market from the time I wrote this comment. The problem is that no one knows what the true downside is. There is no relative value comparable, no P/E, P/S, P/B to analyze, just speculation. While you may believe in the project, there is no guarantee of commercial success. Reiterating Vitalik's comment that the market is hundreds of billion of dollars, but have we truly earned it? Most cryptos are still early start-ups and speculation is what has driven the price. It does not matter if you are a long term investor or a day trader, your resources will always be in fixed supply, meaning, if you have $3k in your bank account to invest and if you invest ratably in the market every time market falls 15% from the time of your investment, you would not have any money after a 45% decline, but guess what, market stabilizes at 70% level from the highs and it takes years to reach back because weak hands have burned themselves badly, and are now out of the market for good. People who have dollar cost averaged must now be kicking themselves, because there is an opportunity cost for each investment decision. Also note that, just because the crypto market has behaved in a certain way in the past (bounced back), there is no guarantee that it will behave the same again. Past performance is not indicative of future results. Be cautious my friend and invest wisely. There is lot of FUD out there, let the market find its support. Again, it is never a good idea to catch a falling knife. You think you know it all, but market may still amaze you in ways you may have never imagined! Don't fight the market :-)
Good point - agree with your view, laddering or not the question is with the market on this downward trend if you are already in do you sell or hold? That is a question I keep getting asked. Personally my position is currently to hold.
Very good perspective!
Appreciate the comment. Just upvoted and followed. Lot of great times to come as we build the crypto and steem community!
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hodl hodl hodl. If you believed in it enough to jump in, then hold on for the ride
thats EXACTLY what i'm talkin about lol
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I totally agree. This is probably one of the best buying opportunity we'll see. Laddering your entry as you put it a great way to consistently lower your dollar cost average. Especially for people who fomoed into Bitcoin at 15-19k this is a great chance to buy cheaper btc and reduce your average. Selling too soon is probably a worst feeling than seeing your money erode for a few weeks. Anyway great post. Cryptos for the win !
"An arrow can only be shot by pulling it backwards"
True That!
First off I loved that you stated the facts and used evidence to help ease peoples emotions. Although, I am a crypto newbie I have survived the Korean won being removed selloff, the panic selloff a few weeks ago when i thought it was the end, and today's recent drop to 440 Billlion. After being able to hodl from those events and see the market rebound after each correction. I am more than confident that cryptocurrency will in fact remain and come back stronger. Especially since I know that major companies are starting to create their own crypto that speaks volume in itself.
Great read and thanks for dropping knowledge on us newbies and those interested in the crypto world.
Appreciate the comment. Don't believe we will die on this hill. More to come if we stay strong and build the crypto and steem community! Upvoted and Followed.
Thanks for the upvote and follow. I love Steemit's community always helping other achieve success.
Thanks Again!
True that, buy the dip! But the question remains...where is the bottom at? Hmmm.....
No one can answer that, but as he already stated, "In my opinion, this would be a time to start laddering buys". I guess this is the most profitable way in this kind of scenario.
Let's hope the bottom isn't at $0, and always finds its stability no lower than 420 Billion.
I’m a hold forever person! I bought my first cryptos in July and I haven’t sold a single thing since. I have also deleted and reinstalled Blockfolio about 6 times in the last month because I couldn’t stop checking it 😂