This entry is part 8 of 15 in the series Two Minute Crypto

Two Minute Crypto

Please click the link to listen to the 22nd episode of my weekly crypto podcast ‘Two Minute Crypto.’ These are intended to be short, single-topic ramblings on some aspect of the cryptosphere. Comments and critiques welcome. Please consider dropping a like and or a review on iTunes or Podbean if you enjoy the podcast.

https://itunes.apple.com/au/podcast/two-minute-crypto-investing-in-crypto-in-2019/id1441492450?i=1000427767070&mt=2

or

https://www.podbean.com/media/share/pb-38qaj-a4b074

Transcript

Two Minute Crypto – Investing in Crypto in 2019

Welcome to Two Minute Crypto. So here we stand peering into the mist of 2019. Will the crypto market go up – no idea. Will it tank? Your guess is as good as mine and likely better. Faced with opaque price action couched in the context of an established bear market can we continue to invest in crypto?

First, we have a number of binary questions to answer. Do you believe in the long-term viability of crypto and blockchain? No. Your work is done. Yes. Next question.

Do you accept that as things stand the overall market is unknown and unknowable but with an undeniably bearish tinge? No – good luck learning the hard way. Yes – I have a solution for you.

In good conscience, within a bear market context, the simplest approach is to dollar cost average into a small number of hand-picked projects accepting the likelihood of temporary value depreciation but also embracing the opportunity an extended suppressed market offers. For myself, dollar cost averaging equates to regular buy orders of 5 projects every 2 to 4 weeks. It’s not an entirely passive process as I only buy within a range above or below which I pause and reassess my investment thesis. Regular, small investments allow you to ride out extended bear markets and, of course, generally pay handsomely on the other side.

I intend to continue on this course until I believe I have identified a firm change of trend. The simple rule I’ve decided on to guide myself in seeing this shift in trend is an open and close of Bitcoin above 10k on the weekly chart. Accompanied by daily trading volume in excess of 10 billion dollars for 2 to 3 consecutive weeks. I won’t be looking to the mainstream media for confirmation nor will I be seeking out random YouTubers to confirm my bias. If, and when, these conditions start to emerge, at that point I’ll expend more energy on assessing the current trend and how best to exploit it. Once convinced, I will start investing more substantial amounts of fiat into crypto.

This relative certainty of approach offers the freedom to continue learning the ropes of crypto with much less focus and concern on short-term price action.

Thanks for listening.

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Responses

  11. financialfreedomcj

    Great post! Doing the same here! I now have what is called Dollar Cost Average Exhaustion if there is a word for that but if we are going to have what others don’t have in terms of wealth and making a difference with crypto, we have to be willing to do what others are not doing!

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  16. Candy Man

    I am spending around 50 bucks every week to buy alt coins. Already have a nice amount of BTC that I hold religious ly but I can’t wait for alt season to come (?). Till then I am abstaining from trading cause it can be quite stressful in these bearish markets 🙂

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