I recently found out that both Poloniex and Bittrex, the two major Altcoin exchanges, had ATH (all time high) new users today. This is a pretty clear signal that there is a LOT of new interest and money coming into the crypto space in general. Because of that I thought it would be prudent to advise that if you too are just getting your foot in the door you should follow some simple and proven strategies to avoid becoming what is known as a bagholder, or someone who bought the top from someone who bought the bottom.
I should know, I paid >$900USD for my first bitcoin and then watched as it went all the way to sub $200. It is likely that you will experience a similar fate if you do not take some simple steps and DOLLAR COST AVERAGE. Simply put, spread your buying out over time so that you don’t go all in at the top and likely will buy some cheaper coins. This is a wonderfully clear and concise post on the subject that I recommend you read through and practice.
Don’t get me wrong, I certainly believe that bitcoin and cryptocurrencies are the future but markets can become irrational and you want to try to avoid buying into a frenzy. This is all too common, and something I learned the hard way.
Notice how this chart doesn’t have any asset attached to it, that’s because human psychology plays out the same way in any market. So, when in the market, act accordingly. Patience is a virtue
To the moon!