How To Invest In Crypto NOW In The 2022 Price Drop
Use the Cost Average Effect with a crypto basket!
All-time high bitcoin on 11/10/2021: $68,823.41
Price low on 5/12/2022, 6 months later: $25,928.96, or -62%
Cryptocurrencies are highly volatile, but everyone who deals with them knows that anyway.
The question for anyone who recognizes the huge growth potential in this market is: what strategy do I use to get in and when?
Invest with Cost Average NOW!
In my opinion, NOW is a very good time to get in. However, even after this sharp drop in prices, it is by no means without risk.
On the one hand, I rely on the cost-average effect to limit losses. Finally, it can still go down significantly even now.
A cost-average effect is achieved by investing the same amount of money regularly over a longer period of time, for example, weekly or monthly.
No one knows when Bitcoin, Ethereum, Cardano, and all the others will reach their previously scaled heights again. It may well take one, two, or three years. Or even longer.
I believe in the new technology blockchain and cryptocurrencies.
I believe that much more potential will unfold as more and more blockchain applications are linked with other technologies.
Remember the dot-com bubble?
Certainly, many cryptocurrencies have no intrinsic value and are simply hype.
Kind of like the dot-com bubble in 1999/2000, when Amazon’s stock price dropped from over $100 to around $6.
A 94% drop in stock price!!!!
And where is Amazon now? At about $2,100, which is already -42% from the all-time high.
In the dot-com bubble, there was huge Internet hype. The internet has changed all our lives and is now indispensable. Without the Internet, you wouldn’t be reading these lines now.
So the hype was justified and Amazon is one of the very successful survivors from that time. However, many start-ups from this era no longer exist.
The bubble is gonna burst!
A similar consolidation as with the Internet industry will happen with cryptocurrencies. The concrete useful use cases will survive, and the pointless fun coins and utopian fantasy projects will not.
Since I don’t want to bet fully on one horse and want to reduce risk further, I invest in two different crypto baskets.
I do this via copy trading on a well-known trading platform. They actually make the main price movement given by Bitcoin and Ethereum. But if a single project fails and is no longer worth anything, then it doesn’t have such a serious impact.
My horizon here is long-term.
I invest every week automatically.
If necessary, even for more than two years.
This is not my main income. That comes from my equity strategy. My crypto investments are the extra icing on the cake.
If you want to know more details about the cost-average effect and why it can limit risk especially now after the sharp drop in prices, read the following article.
A specific highly recommended time to apply it by me is right NOW!
Of course from a long-term perspective.
How To Use The Cost Average Effect In Savings Plans For Great Profits
Sleep peacefully despite volatile prices