Bear Market Conviction for Crypto

A bear market isn’t fun.  Nobody likes watching their portfolio values go down.  But there is opportunity if one were to have enough conviction. 

I’ve heard many times, and from very experienced investors, that ‘bear markets make you rich’ as opposed to bull markets that can ‘make you some money’. 

I’m trying to take that advise along with something else I heard: flip the unit of measure and count the value of the portfolio in BTC value (rather than fiat). 

So, the theory I’m gravitating to is to use ‘cost averaging’ by buying small amounts of crypto daily.  

Why daily? Well, I think of it like drinking coffee in the morning or reading the paper.  I think by buying daily, I will maintain a good ‘feel’ of how the price is moving since I’ll be checking it daily.  Besides, who wants to check the price in a bear market.  I need an excuse. 

The hard part with cost averaging in a bear market is that the fiat value of the portfolio is almost always lower than what I put in!  So, that’s why I said we really need conviction.  Measuring my BTC wallet in BTC (and not in the fiat value) helps me follow the advice: “don’t stray, just DCA (dollar cost average)”.  I always have a higher BTC value everyday!  (I buy some alts too, and some days those alts are down against BTC)

BTC today is stuck in the USD18,000-22,000 ish range.  I wonder how well this post will age? 



  

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