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RE: Unsure - What direction to go.
Buying crypto is a good idea because it will give you a thrill on its ups and downs. Buying a motorcycle is a good idea because of the thrill, too, but there is a somewhat bigger downside risk. Buying a drone is an okay idea, but it will probably get dull after a short while.
The only really poor choice is buying a GoPro and joining the legions of people out there making vlogs. It is such a waste of time to watch them most of the time. I think it is mostly for people who are too lazy to type.
I just think why not both in terms of combating the lazy aspect of vlogging, I could still type up something to go alongside the videos message and deliver on two wavelengths instead of one.
I do enjoy watching the charts on the crypto however, very exciting times recently. I can only hope the trend continues!
I wonder, what is your stance on the current state of affairs in cryptoland, will things keep on the rise > big crash > slow grow > big boom fomo then crash cycle? When is the best time to enter! so many questions when buying. haha.
I like to buy on a schedule if I can afford it. Budget it in. It's why I have the ability to make the choice regarding what/where/when. I think I'll just continue saving for holiday because that is a definite and continue with things as they are.
I don't want to upset anyone. :)
thanks for commenting.
This is a good question. Anyone who answers with anything other than, "I don't know" is probably wrong.
In my opinion, the best thing to do is treat cryptos like any other investment. They should be a fraction of your investment portfolio that represents your risk tolerance. Since they are extremely risky, they should only make up a small portion of your portfolio. For me, that is about 1.5% right now.
After the next business cycle we will know a lot more about how risky cryptos are and which ones are good choices. Until then we are flying blind. The large number of people who think that cryptos are not subject to the same market forces that make speculative bubbles appear in other assets are a sign that we should be cautious. Think about how you would feel if you saw the Bitcoin dropping 90% and staying low for a month. If that scenario gives you heartburn, then you might be in too deep already.
If you are looking to increase the fraction of your portfolio in cryptos, then buying a fixed amount at the market price on a regular schedule is a good way to go. It gives you a small hedge against big price swings.