Everyone Loves A Good Price Spike
Whenever the price of Bitcoin and the broader Crypto market experiences a significant pump, it is always met by excitement and gratitude. However, the only group that should really be getting excited here are the traders. They are the only group that will realize any gain from such a pump. What is also rather interesting to note is that many Crypto traders only trade with a fraction of their entire portfolio. In my case, it does not exceed 20%, unless my trading allocation increases in value against the rest of my portfolio.
What’s The Underlying Message Here?
What this in essence reveals is that the majority of people involved in Crypto are hodlers. Medium to long-term investors are in essence hodlers. This means that whatever happens this week, or next month does not really have any bearing on their investments. The funny thing here is that most don’t really realize this. It is really inconsequential if you are intending on realizing profits within a year or two, or even longer. This is how fear and “chatter” can literally blind people as to what is really important and factual.
The more disciplined and weathered investor understands this and simply increases holdings when severe corrections take place. Newer and inexperienced investors don’t actually realize that in real terms, their portfolio is not really at risk, unless the market completely dumps, or goes sideways for years on end.
Confirmation Of Actually Having A Strategy
Unless you are intending to hold your investment indefinitely, you need to have a clear exit point mapped out. You need to have decided that when BTC hits this price you will start offloading or even sell all. These exit points can be revisited but only under very extreme conditions. Something really significant would need to be taking place in order to validate moving an exit point higher. This is for obvious reasons, otherwise, you will simply continue to delay taking your profit.
One of the most difficult trades to make for both new and seasoned investors is to press that “SELL” button when prices are still going up. The important thing to remember is that you have to set a predetermined price that you are happy with and simply follow through, with no emotions involved. I know, it is easier said than done.
The Reality Of The Situation
If your timeframe or price target is some way off, then what takes place on a day-to-day basis is completely irrelevant. Take a step back and let Bitcoin do what it does best, which is increase exponentially in value over extended periods of time. If current price action is not of much importance, then it shouldn’t concern you much. It is pretty much as simple as that!
Where Your Focus Should Be
In times when Bitcoin is not doing much or even slipping, it is important to have your focus set on things that you do have control over. For example, building even more Passive Crypto Income Streams and producing content. This keeps you busy and distracted from what’s happening in the charts. It is also producing more Crypto for you, which if also hodled will ultimately increase your portfolio even more over time.
When it comes to Crypto and finances, you want to be taking advantage of the compounding effect as much as possible. Get your assets staking and farming to take advantage of compounding growth. Even though staking is not nearly as risky as DeFi in my opinion, I still would advise holding a percentage of your portfolio yourself, preferably in cold storage. A portion that remains at basically zero risk of loss, though not guaranteed. Hacks can still take place and Crypto investors need to always remember that.
To those who understand the timeframe of investing in BTC, keep doing what you are doing! To those who are overly concerned with the price of Bitcoin, perhaps you should dedicate some time and attention to generating more BTC somehow. You have no control over the Bitcoin price, so commit your expectations to the future and get busy with what you can control in the here and now.
Even in an unexpected turn of events, time is a friend to BTC, more so than any other asset. Thanks for stopping by, see you soon!