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!
All rights reserved by Alan Chenkin & Primrose Path LLC.  Remember to give credit to the author and any cited works. Some links are promoted so the author can maintain his Starbucks coffee habit. If you enjoyed this blog, please feel free to share .This Blog was Human-generated by the author, and not produced by a Russian blog Engine.   If you really liked it,  send some bitcoin in appreciation to my Bitcoin Address:
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If you need a Bitcoin wallet, try Coinbase.
 


AND:  Bitcoin Coffee Mugs! 

Bitcoin and the Dead Cat Bounce

The “Dead Cat Bounce”

Image result for bitcoin 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!

 

(with all this volatility, it MAY NOT be Coffee in my mug)

 

All rights reserved by Alan Chenkin & Primrose Path LLC.  Remember to give credit to the author and any cited works. If you enjoyed this blog, please feel free to share and send some bitcoin in appreciation to my Bitcoin Address:
15EzAW7wfyqHD8pj6hS1dUCaLeLxW8uMbn
If you need a Bitcoin wallet, try Coinbase.