Afraid That the Bitcoin Price Drop Again to $20K? Adopt This Proven Strategy Right Now
More than 99.5% effective.
Have you ever invested in the stock market?
I guess so, but it's not a requirement. I know people who have come into the Bitcoin world without ever having invested in other markets before. These people discovered how money and economics work thanks to Bitcoin. They then realized that Bitcoin was a much better choice than the stock market. Bitcoin is the only truly free market in the world.
For what follows, I would still like to share with you some of the adages that come up frequently in the investment world and that some people want to use in the Bitcoin world.
Many seek to apply the rules of the stock market in the Bitcoin world
When the stock market is at its highest levels, the rule is that you should not invest. You will often hear people tell you that you should not buy shares when the market has just beaten its All-Time High (ATH).
A quick look at the Dow Jones or the S&P 500 Index right now is sure to postpone your desire to invest in the stock market until later if you follow this first adage.
Another question that often comes up is:
"Is it too late to buy X?"
Here you can replace X with the action of your choice. It is often said that if people in the general public start asking this question, it's too late to invest in X.
Bitcoin's bull rally since October 2020 has led many retail investors to ask this type of question. Google search volumes show that more and more people from the general public are interested in Bitcoin again:
All these people are interested in Bitcoin as it has just reached a new ATH close to $42K in early January 2021. All these people from the general public keep asking questions on forums or social networks such as:
"Is it too late to buy Bitcoin?"
"Is now a good time to buy Bitcoin?"
"Should I wait for the price of Bitcoin to drop to $20K again?"
"Will the price of Bitcoin falls below $10K again?"
Since I have no crystal ball, I couldn't answer the last question with certainty. No one can, of course. The only thing I can do is give you my feeling. I think that the price of Bitcoin will not drop below $10K again, but we are never safe from a "Black Swan" event like the coronavirus pandemic that hit the world in March 2020.
As for the other questions, you might think that since you're wondering, it's too late to buy Bitcoin. If you stick to the rules of the stock market, that's what it says.
The Bitcoin market is different from the stock market
However, Bitcoin is not an asset like any other. Even with a price above $30K, Bitcoin remains the most undervalued asset in the world relative to its fundamentals. The fundamentals of Bitcoin remain the same, and in a world as uncertain as ours, they make Bitcoin a formidable hedge against uncertainty.
The upside potential of Bitcoin price, therefore, remains phenomenal for the years to come.
By buying Bitcoin today, you are still among the early adopters who will be the most rewarded in 10 to 20 years. That's my certainty. It's the certainty of all Bitcoiners, and it's what drives us to be Bitcoin HODLers no matter what. Bitcoin gives us back the power over money, and that is clearly priceless.
Now that you've gotten to that point in my story, you're going to say to me:
"I'm afraid to buy Bitcoin now and then the price drops to $20K?"
At the time of this writing, the Bitcoin price is $30.3K. The risk of a retracement up to $20K does exist as I recently wrote here: “Bitcoin’s Bull Run Is Not Over Yet, but All Will Depend on the $29K Zone Now”.
However, I continue to buy Bitcoin. Just as I was buying Bitcoin in March 2020 when its price dropped to $3.8K, I am buying Bitcoin today when its price is $30.3K. My confidence in Bitcoin is such that there is only one number that matters to me: the number of BTC I HODL.
With Bitcoin, the best thing is to apply the simplest of strategies
Over time, if you continue to learn more about the incredible monetary revolution that is Bitcoin, you will eventually join me in the camp of the Bitcoin Maximalists. It's only a matter of time because the success of Bitcoin is inevitable.
Until you can have that confidence in Bitcoin, I think you should follow a simple but proven strategy that has worked for many years with Bitcoin. This strategy is the one I recommend to anyone who asks me how to enjoy Bitcoin with confidence.
Buy Bitcoin automatically with a Dollar-Cost Averaging (DCA) approach. Many applications exist for this.
Program the automatic sending of these Bitcoins to your hardware wallet using one of the applications you will buy.
HODL Bitcoin no matter what.
Iterate from step 1.
Let's say you embrace this strategy. You are going to buy Bitcoin at $30.3K this month. You will buy Bitcoin again next month when its price has dropped to around $20K. Don't panic. You continue to HODL no matter what. The next month the price of Bitcoin rebounds to $26K, you continue to buy and HODL Bitcoin.
You continue like this throughout 2021. At the end of the year, the price of Bitcoin finally reaches $100K as many Bitcoiners have been predicting for months. You were then able to take full advantage of the rising price of Bitcoin.
Throughout this price surge, you have been able to accumulate Bitcoin with peace of mind without worrying about its price.
Since the creation of Bitcoin, this strategy has been profitable more than 99% of the time:
Bitcoin's upside potential for the coming years is such that this strategy can only work. You can't compare Bitcoin to a company's stock, because Bitcoin's impacts are much broader. Bitcoin is a monetary revolution that will change the world of the future for the better.
When the price of Bitcoin was around $18K, the Winklevoss twins were talking about a 25x earnings potential for Bitcoin over the next decade. This prediction is more relevant than ever. By buying Bitcoin in DCA mode automatically, you can be sure that you will be able to enjoy Bitcoin for years to come.
So it's not too late to buy Bitcoin. If you fully believe in its revolution, this is still the perfect time to buy Bitcoin. Bitcoin is an accumulation game for years to come. The more you accumulate, the better it will be for your future.
And if Bitcoin falls off after you buy it, just stay a Bitcoin HODLer and continue to apply your DCA strategy. It will allow you to smooth out your costs and end up in profit sooner or later in the months and years to come. This strategy has proven itself for thousands of people, you would be wrong not to benefit from it too.
My book that looks back on the exceptional year that Bitcoin experienced in 2020 is available on Amazon and Gumroad. Feel free to buy it to better understand why the year 2021 will exceed all your expectations regarding Bitcoin. It is also a great way to support my work and my articles.
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