Working With The Market: The Current BTC Price Is An Opportunity
The current BTC price has left many feeling 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 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 restructure your business to thrive in a weak economy. This is a challenging task whether for a business or an investment portfolio. However, portfolios must be restructured for bearish seasons. This is a topic I often address on Sapphire crypto, as it’s imperative for survival in a bear market.
I have addressed stablecoins and the importance of maintaining an allocation in both bear and bull markets. They soften the heavy downside that occurs in a typical bear market, and provide investment capital for when the market provides the occasional bargain. I maintain holding a permanent allocation to stablecoins wherever possible. Being able to earn interest on your stablecoin holdings is another attractive aspect.
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 is despondent, and price action is dormant, a time of preparation is underway. 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 over the 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! However, a bottom will only be confirmed in time. For this reason, accumulation should be modest, at least until a bottom formation pattern has been confirmed.
The Building Blocks of Passive Income Mechanisms
When building passive income mechanisms, one has to look to build when the “building materials” are cheap. These models are built by acquiring and deploying crypto assets. This market is then also conducive to building income structures, as the “materials” are on special. Bitcoin is not that far off its all-time high, unlike alts, which are generally trading at quite a significant discount. This is why I have been buying Solana since it was around $79.
As mentioned in a previous post, I consider many digital assets and infrastructures to be digital property or real estate, not only those that exist within the Metaverse. A digital asset that produces passive or residual income is essentially digital real estate. These assets have an inherent value determined by the open market, while simultaneously producing additional yield/income. The “digital property market” is currently on sale!
HODLers & Builders: The Winning Strategy For Long-Term Wealth
Those who promote active trading over HODLing can only push that idea for so long. Over the longer term, passive HODLing wins. Sure, if you time every move accurately from now until 10 years from now, 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, in a time period perfectly suited to these approaches.
Thanks to staking and DeFi yields, HODLing can be a form of building wealth, as digital assets are deployed to generate income. This is precisely what building is all about, especially when it comes to passive income mechanisms. Furthermore, even stablecoins can contribute to such an endeavor. Many platforms, such as BetFury, Nexo, and YouHodler, offer attractive yields on stablecoins. Essentially, HODLers should also become builders.
My Thoughts
In my opinion, if you haven’t been actively applying these approaches, 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 traders, 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. In my view, HODLers have an advantage. However, HODLing doesn’t really produce income or gains, at least until you sell, that is. I will leave you with some food for thought. See you next time!
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