Today is 28.05.2022. and the price of Bitcoin crashed a lot during the past month. In one month the price decreased from 40.000 USD until 28.000 USD but we know that we were also above 60k.
Possibly it can be strange that I do not own BTC exactly "just" in ETF, but I think Bitcoin will be a part every time of the most valuable coins. I bought Bitcoin ETF just because of the good tax rate. So let's check the price. (Check the real-time price here)
Do you think the increase is a lot? Yes you can feel it possibly because we need to climb up with 40% to arrive to the starting level 30 days ago. Sometimes a price decrease generates panic sells, but please never forget that investments needs to work in long-term especially these times where more of the instruments behave quite hectic. I know there is a lot of sites where you can read optimistic articles and that 2022 will be the year of cryptocurrencies, and I can not give much more explanation. Just a little highlight. Never check a small piece of a puzzle. See the whole picture:
If you check the chart with the previous 5 years you can see a significant increase in BTC price compared to S&P500 index. As you see it increased with 72% but during this time BTC generated more than 1200%.
When you start an investment portfolio you need to ask from yourself what is your main goal. If it is to be rich in 2 weeks than you need to risk everything and count with losing 100% of your capital. Crypto market is basically a risky place to invest, but if you are wise and you can diversificate your portfolio you can even wait easily until the prices goes up.
When I bought Bitcoin ETF my plan was to have it for 5 years long period. As I sas I bought BTC ETF because of the tax advantage, but I'll buy also pure real BTC too now. Shall I wait with it? I don't think so. If you have a decision it is better to buy a portion and increase the amount every month. With this strategy you won't feel that you bought something in the wrong time, and long therm small buys will kill also the hectic market for you. Auto-invest feature is a great option. In long-term you will have an average buy-in price, increasing portfolio and you can also generate more-and-more income with savings. Basically we call this DCA (Dollar-cost average) strategy. Please feel free to read more about it here.
About the BTC price I really think that 100k can be easily achieved in the future. Even if we have this kind of periods when the price brokes a little bit. Do not forget that Bitcoin was dead based on the news more than 400 times during the past 10 years. :)
Comments
Post a Comment