This is All Going to Plan!

Firstly.. what a month for Crypto.

In fact, it is safe to say we have seen it all.. the pull backs, growth, sideways movement and even the entire alt market (cryptos other than bitcoin) rise and fall – and repeat.

All I can say is firstly, welcome to Crypto, but more importantly, this is all going as planned.

Here’s why:  

We are in the pre Bitcoin halving ‘danger zone’ and this means extra volatility which can look like dramatic portfolio fluctuations.

To the seasoned crypto investor, this is nothing to be alarmed about – and perhaps you may even be thinking “have I got all my positions in”, “what other Cryptos do I feel I need to accumulate more of’ or simply “I am set and ready, and I just need to wait this out”.

For the new investor, it could look like “I invested 3 weeks ago and its down 20%” or “I don’t like the feeling of this” or “I wish I just waited longer for this dip”. Or worse – “I am not sure this volatility is for me”

Again. All completely normal.

Based on cyclical history, we are on the rocky road to the start of the bull market, and we can expect this ‘turbulence’ to play out for the next few weeks (maybe even 2-3 months). That is why it is important to never rush, FOMO (fear of missing out), or hurry.

Crypto really does reward the strategic and the patient.

In fact, in my 7+ years of investing in this market, I can say whole heartedly that my ‘worst’ investment decisions always had an emotional intensity behind them.

Perhaps it looked like “I better do this now, even if I am tired” (because I feared missing out) or “I will just allocate the entire amount rather than averaging in because I think this will go up and up”. Trust me, it happens to the best of us and is all part of the learning journey in Crypto.

This is why I have learnt to apply strict discipline – and 9.99/10 it always pays off.

For example. Let’s say I wanted to accumulate a lot of coin X two weeks ago and the prices were looking healthy, the markets are green, and the halving is obviously days away. Instinct says dollar cost average. Greed says “just buy it all now – don’t wait”.

The thought of missing out, of not buying the pump or not catching the wave is just too painful, so the investor fully allocates.

Then, this person wakes up three days later only to find BTC has pulled back, along with the broader market. And worst of all, this investor knew this could be the case because we are in a period of expected volatility. SO, if it were expected – why did this investor tip everything in? One word. Emotion.

The lesson is always to be patient, dollar cost during times of volatility, diversify safely and never do crypto when you are tired or pushing for something to happen.

Crypto favours the bold – and the patient! 

So enjoy this period of volatility, stick to your investment plan, look for dips and enjoy this window we have all the way in to the 2024 bull market due to start soon.