Bitcoin price has dropped (again) – time to buy on the dip? Or cash out and run like hell?

At the time of this writing, Bitcoin is hanging just above $7,000 per BTC.  It’s a tempting buy (especially if you feel Bitcoin will push back up to $8-9k per BTC in the short term).  I am long and optimistic on Bitcoin (I can sense your surprise, LOL).  But I try to be as smart as possible with it.  rather than constantly buy and sell, I buy on the dips and hold.  In the long run, I feel it will go up.  If it hits an insanely high mark, like climbing to $19,000 per BTC, I may be tempted to sell some of my holdings.  It’s not a large part of my net worth, and with such volatility, I think it should not be.  Most investment advisors preach diversification, and if you are 100% Bitcoin, that is a big risk.

 

If you bought bitcoin when it dropped from 19,000USD per BTC, at levels above $10k per BTC, I feel your pain.  Timing any market is usually folly.  Even if you think you are “buying the dip”, no one can predict the actual price levels.  If we could, we all would be millionaires.  Even with almost a 10 year run, many financial experts, like Warren Buffett and Charlie Munger, consider Bitcoin a sham and advise everyone not to invest in it. (links are to articles quoting them on their views).

 

The best advice I can think of is from Jim Cramer, investor/author/money manager.  His suggestion is (and he was referring to stocks, not Bitcoin specifically), was to accumulate your position over time.  Don’t buy it all at once, because the price may go lower, and you don’t want to miss a buying opportunity.  As an example, if you want to buy $1,000 USD worth of bitcoin, buy it in $100 or $200 chunks.  Even if it climbs out of your “buy price zone”, you will still have some of the position in play.

I strongly suggest you fight the urge to BUY BUY BUY! and take your position slowly. As always, get advice from people you trust and financial professionals. Even if you want to cash out of a position you have in Bitcoin, consider doing it in chunks, so you won’t miss out on an uptick in price, even if you have to wait a bit.

My story should not be considered investment advice, just how I take a position in Bitcoin.  Never invest more than you can afford to – Bitcoin is volatile and can go either way!  hopefully, TO THE MOON!

Bitcoin Stickers – For Home, Car, Laptop, more! On Ebay

Consider these books on Bitcoin (from Amazon):
How to Start a Crypto Portfolio – Robert Leshner – Medium – Medium
Should your portfolio include bitcoin? Yes, but just a 2% position, says analyst – Marketwatch
Bitcoin: Mastering Bitcoin For Beginners: How You Can Make Insane Money Investing and Trading in Bitcoin (Bitcoin Mining, Bitcoin trading, Cryptocurrency, Blockchain, Wallet & Business)

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