Dollar Cost Averaging Your Way to Wealth in Crypto!
Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset's price and at regular intervals.
If you have a 401(k) or similar retirement plan, you're already using this strategy.
Make no mistake, dollar-cost averaging is a strategy, and it's one that almost certainly will get results that are as good or better than aiming to buy low and sell high. As many experts will tell you, nobody can time the market.
DCA is a good strategy for investors with a lower risk tolerance. The potential for this price drop is called a timing risk. That lump sum can be tossed into the market in a smaller amount with DCA, lowering the risk and effects of any single market move by spreading the investment out over time.
A third of the time, dollar cost averaging outperformed lump sum investing. Because it's impossible to predict future market drops, dollar cost averaging offers solid returns while reducing the risk you end up in the 33.33% of cases where lump sum investing falters.
Dollar Cost Averaging Bitcoin & Crypto
DCA can prove particularly useful when investing in cryptocurrencies, a historically volatile asset class that trades 24/7 on the global markets.
Someone who dollar cost averaged into bitcoin by purchasing $5 weekly in 2020 would have accrued $692 from a $275 total investment, providing a 160% return.
Although this may not have yielded the highest profit, it protects against the possibility of investing at Bitcoin’s highest price point.
Time in the Market beats timing the market!
Never invest more than you can afford to lose.
Always do your own research.
#btc, #crypto, #bitcoin, #dca, #wealth
BITCOIN HALVINGS - SUPPLY AND DEMAND
After every 210,000 blocks mined, or about every four years, the block reward given to miners for processing transactions is cut in half. This cuts in half the rate at which new bitcoin is released into circulation. This is bitcoin's way of using a synthetic form of inflation that halves every four years until all bitcoin is released and is in circulation.
Halvings reduce the rate at which new coins are created and lower the supply. This gives us supply shock and as with any other asset with low supply, like gold, will push prices higher.
Around the year 2140, the last of the 21 million bitcoin will be mined. We still have a bit of time on our side.
Miners will still be incentivized to continue validating and confirming new transactions on the blockchain since the value of transaction fees paid to miners is thought to rise into the future. The reasons being a greater transaction volume that have fees attached, plus a greater market value of bitcoin.
#btc, #crypto, #bitcoin, #halving, #hodl
Do not fear the reaper - or the market manipulators!
This will be just a quick entry.
First, crypto being as volatile as it is right now, we do hope you are only investing amounts you can afford to lose, or at the very least, not any monies you need to live on.
Second, and this is the big one, if you have invested into strong projects, then time is on your side. A they say, "Time in the market beats timing the market". You have not "Lost" anything. 1 BTC = 1 BTC, and until you swap an asset for another, or swap for a stable coin or a fiat, you are still in the game, and it is the long game we are playing.
So take a deep breath and relax, we are early and can wait out the whales. They will eventually either let the market get back to normal and prices will go up and down based on real fundamentals and technicals or they may even push it past the real value and allow us to take some nice gains off the table and build up our dry powder for the next opportunity to come along.
Keep on Keeping on, and all will be fine, or as they say HODL.
#btc, #crypto, #bitcoin, #FUD,
A CAUTIONARY TALE
DYOR - Do your own research. We can not stress this enough.
While we list several sites and people in the crypto space that all present very good content, and we use these as a resource as well, But do not ever buy into a project without digging deeper.
You may watch a video, or read an article, and it presents you with a new project or coin or token, and the information presented seems good, well researched, shows promise and you then are hyped on it, FOMO - fear of missing out - kicks in and with no further research, you are happily buying in. This happens to the best of us. You find a source you like for information. You enjoy how it is presented, and over time you come to trust this source. They have a track record of speaking about projects that have shown gains. They have been right before and many times, so why would this time be any different?
As is said many times before, especially in this space, past performance does not mean the performance will always be so. Prices go up, then fall down. A T/A trader makes many calls, and you remember the correct calls, and ignore the misses. This is just human nature, and in this space, human nature is not your ally.
You hear about a project and are hyped, great! Now take a deep breath and start looking for the flaws, because they are there and once you find them, add them to whatever formula or method you may use to select what you invest into, and then decide. FOMO and Reliance on others to make your investing decisions is at best, silly and normally can disastrously damaging your your portfolio.
DYOR and take a third look. You will feel better with your decisions and will not be bitter towards another person who presented you with a crypto to invest in that ends up not being what it seems, or underperforms. You may still end up in the position, but it will be on your terms and you will feel better about it in the end.
#btc, #crypto, #bitcoin, #fomo, #investing, #altcoins
If it sounds too good to be true...
Good god, how many times does this need to be said?
Take a look around the world, no is no free lunch, there is no getting rich quickly,
There is great amounts of money, super opportunities and direct access to new promising projects, the kind insiders and the wall street types only had access to before the crypto space opened up. With the types of returns a legitimate project can make it simply astounds me that people will still try to reach higher. Greed. I almost do not feel sorry for many of the people who try to fly too high only to have their wings of wax melt and come crashing down. If you did not follow the reference, dyor ;)
We have the meme coins, we have the rug pulls and the pump n dumps, we have the exit scams, we have it all and all of them can be seen from a mile away. Sadly, in the current year with click bait headlines, and nearly every single news headline being of the negative or outrageous, the world looks on and with the over the top reactions and the incessant need of so many to protect us from ourselves mentality - this ends up being NOT a good thing for the industry overall.
Regulators/Governments want to step in, crybaby billionaires want more and more regulations, or in other words, they want to turn crypto into the current system and keep the plebs out.
It is incumbent on all who say they love crypto and what it represents, to those who are making incredible profits, to call out as loudly the scams and ridiculous shit and they do their TOP COINS TO THE MOON or TOP 10 COINS OF CURRENT WEEK/MONTH/YEAR or XXX% INCOMING posts and videos to donate 10% of their influence to CALL OUT - JUST AS HARD these scams and all the shit.
I have seen several posts or videos, where they tip toe around it, refusing to call bullshit, not wanting to offend anybody. Holy Hell, why? Are you afraid to get canceled by the shillers and scammers? The XXX army of keyboard warriors giving you sleepless nights? Subs and likes count dropping on a video scare the life out of you?
If we do not clean up our own room, MOMMY (aka government et al) is gonna come in, do it for us and ground us all. That is not the direction we want to be going.
#btc, #crypto, #bitcoin, #FUD, #cryptoscams
El Salvador and BTC FUD
I see many people speak to volatility of BTC in regards to El Salvador. If you have a smartphone and a crypto wallet, nothing stops you from moving BTC to a stable coin.
If you are saving a small percentage of your money - say the money you would normally lose in a traditional transfer if terms of remittance payments, then leave it in BTC for a retirement savings plan for the future - and convert to stable coin, if you are worried.
While many people in Central America may not have normal internet access, everybody has a smartphone and can access the network over mobile data plans, free wi-fi hot spots etc. which I image will be popping up more and more as vendors build out their services to accept BTC, which they will see as a win over fiat, especially when it jumps up in price. They will be happy to accept BTC and HODL or again, convert to a stable coin if they are worried.
Being based out of Costa Rica, another very crypto friendly country, we have local knowledge and can 100% tell people, the citizens of El Salvador will do just fine with BTC and will adapt very quickly into the overall crypto space. This move will make many people look deeper into crypto who would normally not have, and that is great for all of us in the space.
Another thing this will do, is all the Salvadorians around the world will speak about this to the people around them, "The Network Effect" - again only good for the space.
We as always remain BULLISH on BTC and CRYPTO in general.
#btc, #crypto, #bitcoin, #FUD, #elsalvador
HOLD ON FOR DEAR LIFE
The absolute and sheer amount of FUD in the news is so over the top it is laughable. At this point what one needs to do is go hunting for bargains, start with projects you love and find the ones that have dropped the most as your staring point.
We know that "BUY THE DIPS" is as old as the hills, along with "IF THERE IS BLOOD IN THE STREETS - BUY", but these clichés exist for a reason. Now we are not saying just buy willie nilly, but look for opportunities in solid projects you absolutely know will bounce back. The BIG BOYS are obvious picks and should not be overlooked, as time has shown, many token and coins from just a couple years ago are no longer in existence. Look for the projects you "just know" will be around for the foreseeable future and focus your research on those coins or tokens.
We have some low buy orders in on VET, DGB, CHZ and AAVE
As always, make sure to do your own research, and not just take our word for it and... Happy Bargain Hunting.
#btc, #crypto, #bitcoin, #hodl, #buythedips