Category: Bitcoin Dip

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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)

Thanks for Reading my Blog on Bitcoin!
 
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Bitcoin and the Dead Cat Bounce

The “Dead Cat Bounce”

“A dead cat bounce is a temporary recovery from a prolonged decline or a bear market that is followed by the continuation of the downtrend. The name “dead cat bounce” is based on the notion that even a dead cat will bounce if it falls far enough and fast enough..” – Investopedia

The powers that rule the financial markets, The FED, the SEC, the World Bank, etc., all have one thing in common – they view Bitcoin as “the enemy” (The enemy of the Banks).  While volatility rages in the Bitcoin price, any downturn – or upturn is regarded as proof that Bitcoin is a sham or fraud, like the “Dead Cat Bounce”.

Unfortunately for the large financial institutions, Bitcoin is far from dead.  In fact, it is making a recovery from recent lows.  Is the cat bouncing?  You Bet it is.  That sucker is going up and down like a yoyo.  Count on it.

History teaches us that it takes 20 years to convert a financial fad into a trend, and a trend into an institution.  Bitcoin started in 2009, and is a nine-year overnight success. The banks deride Bitcoin, but almost all of them are using the Blockchain technology (the underlying bitcoin technology) for developing low cost and stable transactions.  With apologies to the Bard, “Methinks the banks protest too much”.

While the cat is bouncing, you can 
1) Enjoy the show
2) Keep calm and HODL on
3) Buy on what looks like it may be a “low”, and sell some on what looks like a “high”  (Note: it is generally agreed that no one can “time” the market, but with this much volatility, moving 20% in the course of a week, it could be a worthwhile risk – but don’t “bet the Farm” – know how much you can afford to lose, and keep Maalox handy).

Enjoy the show, Hold your coin and enjoy the highs, while avoiding despair when the price plunges and the Fat Cats project the “End of Bitcoin”.

Bitcoin Obituaries – Bitcoin has died 253 times
Best of luck to you, and may your Bitcoin portfolio go TO THE MOON!

 

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The Coin without a Country: Bitcoin

OK, Bitcoin prices trended Downward.  Has the sky fallen?
Just like stock prices, Bitcoin is finding it’s newest pricing Plateaus.  However, with the Price Volatility of bitcoin, understanding these “trading ranges” is like reading tea leaves to forecast the future.
Bitcoin is a global Phenomenon.   It’s not just a product to hold and invest in, it has a valuable purpose; if your local fiat currency is suffering from inflation and devaluation (or worse), you need Bitcoin to move money around, or get it out of the country without paying enormous fees.  In developing countries, women can conduct business in Bitcoin on a smartphone.  Muslim women who cannot enter a bank without a man to “conduct transactions” for them, can have a smartphone with a Bitcoin wallet under their Burka.  Their children bring the product to market, and they receive Bitcoin in return.  It solves a problem in these countries, and Bitcoin can be more stable than some government-backed currencies!
In the US, the dollar is a strong currency.  Bitcoin is not a necessity.  Many of my fellow Americans only see it as an investment medium; they would never consider using Bitcoin to build a business, as the dollar is more stable and respected world-wide.  The number of businesses that accept Bitcoin for payment is steadily growing.  Led by global businesses like Overstock, there are now hundreds (if no thousands) of businesses and even more individuals accepting Bitcoin for payment.  Even Craigslist is in on the act, with an “Accept Cryptocurrency for payment” check box.
While we watch Bitcoin, and try to understand where it’s “trading range” is, intelligent followers of Bitcoin realize, sometimes painfully, that it can move to higher or lower ranges in minutes.  Predicting the price is like forecasting stock prices or the weather.  The one thing I can assure you of, without hesitation, is that the price will change.  Most of my friends and associates are not panic selling, they are patiently waiting for the price to rise.  They have a lot of confidence in Bitcoin, since it is global and useful beyond mere investing.  Many of the “Alt-coins”, created in the image of Bitcoin, do not have wide acceptance, and are like “penny Stocks” and IPO’s, where the company behind the IPO can’t get traction and loses its value.  Many Altcoins have been mined, had their run, and become worthless (Not all are worthless, Companies and countries are going to be mining their own Altcoins).  With no lasting staying power, merchants, or ability to maintain their growth beyond a brief run, Many Altcoins fade out, while others are listed on the exchanges and actively traded.
Bitcoins global base, large pool of owners, miners, businesses, and exchanges give it more credibility and staying power than other cryptocurrencies.  There is also a finite amount of Bitcoin – so having some popular alternatives (Litecoin, Ethereum, etc.) is good – think of it like having choices between state-backed currencies; Dollar, yen, shekel, ruble, Mark, Pound, Peso, and the coin without a country, Bitcoin. (Did I just describe Forex trading basics?)
Whatever you are invested in, keep an open mind – Bitcoin is the “New Kid” on the block, and will have growing pains.  The sky has not fallen, but has got a few cracks in it.
(Disclaimer: I own Bitcoin, these thoughts are mine and not advice on what to do with your Bitcoin – just my personal view.)
 
Thanks for reading my blog, (and feel free to share)
Best of luck in Bitcoin,
Alan
More Reading:

Don’t just take my opinion:
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)

Best of luck to you, and may your portfolio go TO THE MOON!

Bitcoin Watch – Men’s Wrist Watch – Classic Black Leather | Bitcoin Gift | Bitcoin and Ethereum Coin – Crypto to the Moon

Disclaimer: This article is offered as opinion and is not a recommendation on investing. Please consult knowledgeable advisors and professionals you trust when seeking investment advice.
 I currently own BTCS,  I also own some Bitcoin and Litecoin.

 

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