Working With The Market
I am sure that BTC is currently causing many to become a little despondent, perhaps even unmotivated to continue. It is surprising to see how quickly faith can be lost when challenges arise. This is however how markets operate and why I have been saying for months that BTC would remain in this range despite spurts to the upside and dips to the downside. The most practical and realistic approach is to simply work with the market. You cannot take on the market. It is similar to when an economy struggles. As a business owner, you cannot go up against the economy. What you can do though is to restructure your business to thrive in a weak economy.
What Are The Benefits Of This Current Market?
As Bitcoin remains trapped in its “lockbox” and many begin to lose faith, there are a few approaches that are well suited to this market. When the majority are despondent and the price action is dormant, a time of preparation is in play. This is the best time for accumulation, as a prolonged period of sideways movement will usually be broken by a very significant move. The likelihood is that the breakout will ultimately occur towards the upside. I have been modestly accumulating a few alts I am interested in long-term, as well as BTC. Dollar-cost averaging always pays off over longer periods. It is also likely that the bottom is in and if that is the case then there is actually no better time than now!
The Building Blocks
When building passive income mechanisms one has to look to build when the “building materials” are cheap. These models are built through the acquisition and deployment of Crypto assets. This market is then also conducive to building income structures, as the “materials” are on special. Bitcoin is not that far off of its all-time high, unlike alts which are generally trading at quite a significant discount. This is why I have been buying Solana all the way from approximately $79. As mentioned in a previous post, I consider many digital assets or infrastructures to be digital property or real estate and not only that which exists within the Metaverse.
Hodlers & Builders Win Hands Down
Those who promote active trading over hodling can only really push that idea over a short time period. Over the longer term, passive hodling wins. Sure, if you time every move accurately from now until 10 years’ time you will be in a better position. However, the market has a way of showing even the most accurate trader who is boss. Building and hodling are two of the most effective and stress-free strategies in the Crypto space. We have been and are still currently in a time period that is perfectly suited to these approaches.
In my opinion, if you have not been busy exercising these approaches, then it’s time to start. This is not financial advice but my personal viewpoint and interpretation of the market. In a worst-case scenario, you are still better positioned than the trader going long. Bearing in mind that many of my readers are not full-time Crypto, this makes even more sense. You want to be able to sleep at night. Building is an age-old approach that signifies stability, strength, and security. Trading is however more reliant on what is completely outside of your control, no matter who you are. I will leave you with some food for thought. See you next time!