MY CRYPTOCURRENCY JOURNEY:
Why I’m Not Worried About My Cryptocurrency Portfolio
Crypto is like the Wild West… hold onto your hats and buckle up for the ride
The last few weeks in cryptocurrency have been… interesting to say the least.
After a recent “crash” in the crypto market where Bitcoin fell to a low of $30k per coin, it has many scratching their heads — and even exiting the crypto scene forever.
However, even despite this low, here’s why I’m not worried about my cryptocurrency portfolio.
Bitcoin’s fall to $30k is not unprecedented and isn’t all that low to begin with:
At the time of writing this article, Bitcoin is fluctuating around $34–39k.
It has gone up even has high as $40k, but has not gone back up to the historic high of nearly $65k back in April 2021.
You can see on the graph above that it fell from $65k down to around $51k, quickly swung back up to $56k, then plummeted in recent weeks.
The fall to $30k per Bitcoin had many running scared as they dumped their coin to get rid of it before it fell lower — ironically, causing the price to continue to fall.
That didn’t last for long, as many buyers have been waiting for a low like this so that they could scoop up more satoshis (smaller pieces of Bitcoin) for a lower price.
This meant that the dumpers dumped and the HODL-ers bought.
Many who were in it short-term left cryptocurrency for the time being (and even forever) due to the volatility of the market.
This demographic would rather wash their hands of it than play the long game — or get lucky with swing trading.
The cryptocurrency market largely centers around Bitcoin:
There are thousands of alt-coins these days, and many have great prospects.
I personally like Ethereum, Cardano, Chainlink, and Algorand.
For any alt-coin (or Bitcoin for that matter) read the Whitepaper that explains the purpose and how the creators see it working long term.
You never want to invest in something that you don’t understand!
However, most of the alt-coins tend to follow Bitcoin’s trend and when Bitcoin is down, the alt-coins follow. When Bitcoin is up… you guessed it.
The alt-coins follow.
A few of them have seemed to gain traction on their own lately, but not enough to defy Bitcoin’s swings as of late.
In the future, it’s looking like with enough purpose, enough investors, and a bit of time — these alt-coins could separate themselves from Bitcoin and start their own market trends.
I’m in it for the long haul, not swing or day trading:
As I mentioned here a few weeks ago, I’m a HODLer.
Yes, HODL is a hilarious word, and came from a typo where someone meant to say “hold”, but came out “hodl”.
This phrase is now widely used in cryptocurrency for someone who holds onto their coin for a long period of time and is not just in it for a quick penny.
I’m not looking at these trends as something that will scare me over the next few days, weeks — or even months.
I’m gathering what I’d like to hold onto for the next few years — and beyond.
While many will say that Bitcoin and Ethereum are already “old news” and have “outdated” technology, my personal research has led me to believe that planting this seed now and diversifying my portfolio between Bitcoin and my favorite alt-coins will lead to success down the road.
The best advice I’ve ever received about cryptocurrency is:
Invest what you can — but never more than you’d be comfortable burning in your front yard in case you never see it again.
To some people, that might sound completely ridiculous.
To others — the reaction to that statement includes nodding their heads and smiling.
Like I said — it’s the Wild West.
My portfolio has increased exponentially already because I bought the lows:
Buy.
The.
Dips.
For the long-haulers or HODL-ers, dips just mean it’s a great time to buy.
While others are selling their entire portfolios, many are using it as a time to crack their knuckles and buy the coins they’ve been looking at for the last few months.
While we may have a rollercoaster on our hands, the overall trend is up.
Dips flush out quite a few people who aren’t serious about crypto out of the market:
Buy cryptocurrency, they said!
It’ll be fun, they said!
It is fun, but it’s wild.
So wild, in fact, that many call the cryptocurrency market the modern “Gold Rush” or the “Wild West” because of the potential for massive wealth, massive loss, and the overall unknown.
All of that may be true — and I’m ready to play real-life Ready Player One as we find out.
This article should not be considered financial advice and is based on my personal opinion and experience.