Please click the link to listen to the 15th 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.
Welcome to Two Minute Crypto – Am I still a buyer?
So, it’s been a relentlessly grim bear market this week. New lows followed by further lows – with little in the way of price support to be found. Bitcoin is bleeding, while its altcoin brethren are hemorrhaging value at an even faster rate. So all is lost….of course not. I’m out of the market…your joking?
Now am I simply buying the dip – no I’m not. I am, however, continuing to dollar cost average into the projects I see long-term value in. I’m not chasing the bottom or even concerned about a falling knife. I’ve long ago set my investment thesis in relation to a small number of large-cap projects whose fundamentals I feel confident about. A sudden and sharp dip in their short-term valuation isn’t something I’m trying to capitalize on or run away from. My investment plan for each of these cryptos is current within a range and at the moment I’m accumulating a little more of each at the same rate I was 3 months ago.
What I’m not doing is searching for low-cap gems, pending ICO’s or coins about to pump. None of these would likely see a return in the current bear market and the wasted effort and mental energy can be better spent elsewhere such as learning ever more about this incredibly stimulating cryptoverse unfolding before us.
Am I then a buyer to zero – absolutely not -for all the projects I currently dollar cost average into, I have a buying range above or below which I will stop and take stock. As a concrete example, I first bought EOS at roughly $3 dollars and stopped purchasing after $6, once price dropped back below $6 I started buying again – small regular installments. I will stop these purchases at $2 dollars and reconsider the project and market at that point. If we bounce along between $2 to $6 dollars I’ll continue to accumulate until my final position target is reached. At current price that would be roughly 3 months away.
So, am I filled with the joys of crypto giving – well no but neither am I done with the market and despair plays no role in my investment decisions. Is it possible all crypto will go to zero…sure but is it likely… of course not. Investing is a probabilities game like much else in life and I still like these odds.
Thanks for listening.