True to form, the cryptocurrency market has been volatile all year, offering investors plenty of chances to buy the dip.
In his book, The Psychology of Money, Morgan Housel discusses the importance of knowing what game you’re playing.
And larger altcoins like Cardano or Solana offer a high risk, high reward option for risk-tolerant investors.
Having a stake in something provides an added reason to stay up-to-date with the market and sharpen your understanding of why Bitcoin and Ethereum could be good investments.
One of the lowest-stress ways to invest in crypto is to simply dollar-cost average into the position over time.
For example, you could set up a plan to buy $10 of Bitcoin daily, weekly, on the 1st and 15th of the month, or monthly.
So far this year, each sell-off was followed by a rally, the most impressive of which transpired in October.
Bitcoin and Ethereum might be hovering around all-time highs right now, but it’s important to remember that they spent roughly half of the last six months on a downtrend.
Instead of throwing a big chunk of money at crypto now and hoping it works, investors can earmark a portion of savings to use on Bitcoin or Ethereum if the price falls 10%, 20%, 30%, et cetera.
Ten years from now, it wouldn’t be surprising if crypto played a role in many of our lives — either through investment or application — in ways we can’t begin to imagine right now.
They’re playing a different and riskier game than long-term investors, a game that’s more concerned with where prices are headed in 10 days than 10 years.