Should I buy more or wait?
![thinking man.jpg](https://steemitimages.com/DQmbM3b9uPChtL8oKL6VSAvcsQtSzaqbzHdLDDtcmfoFjSn/thinking%20man.jpg)
Why am I having this question?
Everything is falling:
So its great time to buy for investor. We can buy at low price now. We can see the potential in cryptocurrency for future so its going to grow back in future.
But for how long it will fall:
what if we buy today and it will fall down for months. Its not going to be easy to be calm in that case. There will be big regrets followed by helplessness.
Don’t know technical analysis:
Many people out there don’t know much about technical analysis so they can at least find the probable prediction about price hike or drop. Even technical analysis can’t predict trend accurately. So it’s risky to follow anyone because they also are not sure about what is going to happen.
Lions in the market:
There are big players in the market who have more resources, power and money than common people. So if there is going to be any good or bad news they are going to be aware before us.
News reaching out late:
Most of the people are doing jobs for paying bills and we can’t afford luxury to just staying updated every second about crypto world or spend much time in getting updates about activities going on in all the cryptocurrencies. So news reaching out will be very late for getting moment profits.
So overall its very difficult to decide when to buy or sell anything. Maintaining proper time every time is impossible for even experts so we cannot even think of that, But we can minimize risk. I apologize for adding some points again which were there in my previous post, But those are essential.
Lets see how to minimize risk:
1. Distribute money equally for certain time period:
Distribute your monthly budget for investing equally in all days and invest little amount each day. This will help you to mitigate risk if there is fall in price. In long run you would end up buying at average price.
2. Buy currencies which you feel are undervalued:
This is going to be very difficult since there is no way to calculate, what is undervalued or overvalued in crypto market. You can see growth potential in price by doing proper research about cryptocurrency.
3. Do Research:
Do proper research before buying any coin. I will soon write one article about it. Stay tuned.
4. Diversify:
Diversify your investment, so even if one of the coin drops down to zero(consider worst case scenario) others will recover your money.
5. Invest which you can afford to loose:
Cryptocurrency investments are highly risky. It had given high returns but nothing can be guaranteed. So please don’t invest money which you can’t afford to loose.
6. Don’t react on temporary news:
There are going to be bad news about cryptocurrencies. Don’t immediately react on them. If you believe in idea behind that crypto and it’s team they are going to get out of bad situations. They are going to find answer for problems. Don’t get panic.
7. Don’t get driven by emotions:
When your investment going to rise to sky or fall down below ground level don’t let your emotions flow by it. It is just the paper money. It’s nothing until you sell it. It is highly volatile. So whenever you are investing, think like you have thrown out and its not yours until you will sell everything and convert it to cash. It helps in remaining detached from it.
I am not financial adviser or trader. I am long term investor and these are just small things I felt would be useful to you. Please do proper research before investing. And please add your views in comments. Thank you for reading.
Some very good tips you have there.
It's true that loads of people (including me) don't have the technical background to make good analyses. When I want to invest, I have to rely on technical analyses made by others. So far, I've been lucky and it turned out good.
The question 'should I buy now or wait' will always be an issue. When prices are low, you can not say if they reached rock bottom yet. Same goes for selling. I've been doubting to sell my BTC for weeks now. Still haven't done it :-) Maybe that's a stupid move, maybe not.
That's the entire thing with investing in cryptocurrency: it is a bit like gambling.
I think having a diversified portfolio is one of the most important tips in the list (next to, of course, don't invest what you can't afford to lose, which is the 'golden rule'). In case the price of a coin falls, you (probably) still have a backup when the price of other coins may rise.
I'm going to resteem your article, 'cos I think everyone who's thinking about investing should read them to be aware.
Thanks a lot for such detailed comment.
As far your concern about selling bitcoin. I personally feel bitcoin will increase for some time. I am not big fan of bitcoin, there are lot of altcoins giving better value than bitcoin. But whole world is not yet joined "crypto world" whenever someone new will join, they will be first introduced to bitcoin. Also lot of new ICOs and exchanges accepts bitcoin for buying altcoins so unless supply does not increases considerably bitcoin will further increase for some time.
If everyone starts to seek value and then invest, bitcoin won't keep increasing, but I don't think so this is going to happen. There are lot of people investing their money without any knowledge. People are very ignorant. They are going to take bitcoin to new heights.