So up until about 5-6 weeks ago many were panicking about the enormous price drop in cryptos since December but more seasoned traders and investors knew this was a buying opportunity, and who knows when and if it'll present itself at these prices again. The FUD seems to have calmed down and the markets seem to be starting to react as they should to counter the great panic selling of the hard crypto winter.
I'd like to present my case and I'll begin with Bitcoin. it is slowly approaching the 10k mark and has remained in solid territory as far as two of my favorite indicators are concerned (RSI and Bollinger bands). We're steadily approaching key psychological level of $10K USD and I hope to see this happen soon with a big green bullish engulfing candle on the daily chart soon.
Bitcoin is the market leader and others tend to follow but we've seen some mixed performances in alts which is good! Bitcoin seems like it has less effect on the overall market the last several week which is good. Each crypto should appreciate or vice versa based on its own merits. My strategy is sort of based on Warren Buffet's "buy when there is blood in the streets" and there was definitely plenty of blood to go around. I also use sentiment of others to detect good times to buy and also bollinger band analysis and RSI. Lots of people on steemit who do technical analysis like elliot waves which is fine, but it's not my bag.
My point is, when people are panicking about the price of any crypto, take steem for example, and the viability of the platform itself and the currency value, I was scooping it up as I did in the fall around a dollar. Was it a good pickup recently? well the price that I averaged my buy of 522 steem was $2.20 I believe, and now steem trades around $4. OPPORTUNITY! Caught that falling knife and now those buys have doubled in value.
Which leads me to another big winner winner chicken dinner for me recently and my latest addition to my almost 20 types of crypto--Ontology. I noticed a beginning uptrend and bought 250 of them around $2 and now they're trading over $10! Nice 4 bagger so far and it looks like it's got more room to run. I only wish I'd bought 500 or more but I didn't have that much fiat to spare.
And finally we have a huge winner--EOS. Gosh I wish I hadn't sold 80% of what I'd bought at under $1.75 or so average (1000 of them when it hit $8 months ago, but I still hold some and their value is skyrocketing). I can only imagine what we'll see in the next few months. It could be the next big big one!
So I'm not letting go of any of my holdings any time soon. I'm in this for the long haul and I wanted to point out that there have been 3 times in the past year when people buy high and panic sell which saddens me. I'm not trying to give advice, only showing that patience in the market pays off. Another Buffetism, "The stock market is a device for transferring money from the impatient to the patient..." Yes this seems to apply to cryptos too. Look at all the folks who bought at the top and sold when it dropped so far.
So next time you're losing hope, maybe keep a cool head. If it's money you can afford to lose, which is the only money you should invest in such volatile assets, give it time unless you see some bad scammy stuff going on with one of your holdings.
That's why I'm not afraid of falling knives, I keep my buys moderate to small and fairly frequent so if I get temporarily burned on a buy, I can always average down and usually I end up better off for it. Look at my steem account value if you don't believe me. I've not invested but about 60% of 5 figures here in USD and most of my earnings have come from appreciation of value of my buys. Yes some of it is from authoring but it's a small portion compared to the hard earned money I've put in it.
So if there's a moral to this rambling story, things are starting to look better and if you look at what happened last spring and consider that this is a very early stage technology, the sky is the limit. I've had plenty of could've would've should've regrets in investing and lost money on stocks and such at times because I didn't follow my plan and wasn't patient.
It took me a long time to discipline myself to just ignore the market when I don't feel like seeing how much I've lost on paper. But I must remember a loss is not a loss until I sell. And that's usually near the turning point and I regret selling. I've done it many times but I've learned from it.
So cheers to a budding uptrend in the general crypto markets. Let's keep our fingers crossed and our eyes open for great opportunities! You won't get rich overnight, it may take years, but it could happen! It could change your life! Or you could lose a lot of money if you aren't diligent. Speaking of diligence, I must end on this note.
this is not investment advice, only a snapshot of my experience through this hard past few months. I am not a financial advisor and I don't suggest you follow my strategy because it's my money to lose and even if I lose it I can still pay my bills. Don't invest more than you can afford to lose, always do your own research, and if you're unsure, then consult someone who knows what they're doing (a competent financial advisor). Don't just take some guy on the internet's word for it. No matter how great the benefits may appear to be in the future>
Happy investing and an early happy friday to you all!
~Cryptokeepr