One approach to buying the crypto bottom
In today's video I discuss one of my thought processes when buying during a bear market.
Crypto & Cardio #16
Footnote
One thing I forget to mention in the video is that I like this approach because it helps eliminate some of the fear of the market tanking further. For example, getting some skin in the game at $4k is easier when you know that should doomsday arrive and BTC hits $1k, your price average could still be around $1.7k.
It's also worth bearing in mind that there are nuances to this approach however I've kept it simple so you can get an idea of the thought process.
Pulling the trigger and buying is difficult, especially if you haven't played the scenarios out in your head. I find having some sort of game plan that you can execute on is a great starting point. Not to say that you cannot deviate or react to new information, however I find role playing worse case scenarios before they arrive and knowing what I'd do as a consequence gives me confidence to take action today.
Let me know what you think? And strategies/ tactics you employ during a crypto bear market?
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Dollar cost averaging is a decent way to hedge your risk against going in too early. You can miss out on gains if it just takes off after your first purchase, but at least you're in the game at that point. If it keeps going down, you get the chance to get more shares at a lower price. This does allow you to lower your average cost, but lowering your average cost shouldn't be the goal.
I think the goal should be to buy investments that you think will make money. If that happens to lower your average, that's ok, but those shares will take a loss if they're sold at less than the buy price of that specific share. First in, first out.
Bottom line, DCA is a good way to spread risk if you think the market is going down more, so I agree with you. My agreement is not investment advice though. ;)
This new downwards capitulation has gotten a lot of us thinking. A lot of us are even running around like headless chickens.
I personally am bullish in the long run and people like us are simply going to buy the dips without going in all at once. Sooner or later this trend is going to reverse and maybe even go through the roof. Those who are going to reap the rewards would do so on the bases of patience, smartness and a set of brass balls.
Great stuff you have just put together there. Actually i believe that this is the best opportunity to buy more crytocrrency at investing them example like steem, now that the price is generally low then you get to make more profit when the price goes up
Hey Nanzo-Scoop i just found your channel and love the concept of talking about crypto after cardio. Because doing cardio means getting fit for the long run and thats the exact same with the crypte market. Crypto will succeed after most of our society will accept it and that will take time. looking foreward for more videos!
I wish I had more fiat to take a bite out of this but I’m not really concerned with finding the bottom crypto is so low now I think I’ll try and earn some and if it starts to pick up maybe 10-15% I’ll look at buying in again and not try to find the bottom but ride the next uptrend and try to buy and sell at certain values!
I think it’s good for the overall market as too many coins had crazy valuations for doing nothing and it it’s actually about creating value and attracting investors and consumers with your actual function and not just we could moon
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for the first time people are looking to buy more in the bottom may be things will change around soon hopefully
long on btc at $3333 .... ready go!!
good video. i been in crypto over a year. i feel strong on it all. even in these drops. i am not worried. more things to worry about. idea is long term hodl. in time we all must be patient. thanks for sharing
Great advice, I think people need to get out of their heads to an extent and look at the overall macro situation instead of being caught up in short term news and market cycles.
Hi
I haven’t been in a bear market like this with bitcoin, do I appreciate you sharing your strategy of buying in this bear market. I am long term bullish on the coin and platform, so I am making small weekly investments and have unintentionally been dollar cost averaging as I saw each new low as an opportunity to add to my account. I feel Steem is an amazing blockchain compared to the 30 or so POW, POS and Masternode coins I have already invested in and learned from. I plan to hold longterm as this coin has unique characteristicswhuch sllow me to profit without selling my stake. I also like this vlog format. I have been reading not only about crypto but also about information presentation and it seems that pictures and video are the way to go.
Take care and happy holidays.