CRYPTOCURRENCY INVESTMENT

TIPS ON CRYPTOCURRENCY INVESTMENT

Expert opinion.

"For me, I'm a "buy and hold" kind of guy, preferring to look at the underlying use-case value of a crypto before deciding to buy or not.

Mind you, I have attempted to time the market on a few occasions, only to lose out big time.

A couple of examples: Several months back I purchased a significant amount of Dash, having evaluated it, played around with it, and determined it had some good features.

Within a month of my buying it at $12.50, the price dropped to $8.50 or so. I started to panic and as soon as the price moved up a bit, I sold them at $9.50 - taking a loss of $3 per coin. Ouch!

But that wasn't the worst part. Within a couple of months of my selling, Dash's price started to move up significantly and today stands at around $140 (at time of writing this).

In other words, if I had not sold I would have made over 11x my money!

Now the lesson I learned was that given I had taken the time to consider Dash worthwhile, it was a mistake to have sold it when I did. If I had held on, then I would certainly have profited.

But I made the same mistake again with Ethereum, having purchased a reasonable amount around the $13 mark, only to lose confidence and sell out. Of course, Ethereum is priced around $260 as of writing this.

So what’s the moral of this story?

If you’re not an experienced trader don’t try to time the market. Instead use a “buy and hold” strategy and pick your cryptocurrency with great care. Study it. Evaluate it. Convince yourself it has a valid and valuable use-case with a ready market. Take the time to understand it fully before committing.

In my own case this is how I have always treated Bitcoin. I bought my first coins back in 2011 and have never “panic sold” any of them - holding on to them through all the wild swings in price. And this strategy has paid off handsomely.

I’m now doing the same with another carefully hand-picked crypto, one which I also do not intend to “panic sell”. "