3 Rules for investing in Bitcoin and Crypto Currency.

Hey,

I’ve been investing in the markets for a long time both active and passively.

Firstly through your standard financial advisor buying shares in tracker funds, then with a discretionary fund manager investing on my behalf buying shares in direct copmanies like Amazon, Tesla and hundreds of others. And in the last 6 or so years since I sold my business more actively myself.

I’m not saying I know it all, of course not, I learn more everyday. But I have had some good success.

Here’s 3 golden rules that have served me well with investing in Crypto currencies specifically.

1. Expect pull-backs anywhere from 30-70%. It’s going to happen. Don’t invest unless you’re up for that. Volatility in this asset class is a given. It has and will continue to reduce but it’s still there.

2. Volatility is not risk. If you know the trajectory and behaviour of the asset class it’s just about managing that. Consider the elite football player that scores all the goals but has the hot temper. How do you manage that person? Same thing with Crypto.

3. You cannot time the market. If you’re investing for a longer period (like a year or so), that entry point is less important. Buy the future not the present, and put money in that you don’t need to get out quickly.

No one has lost money who has held Bitcoin. You only lose when you sell. The hold period is generally 4 years or more. I can attest to this. My best Bitcoin investments are the ones that I’ve had the longest. The price literally only goes up in the long run.

You must be invested to benefit. Don’t look from the sidelines, you’ll miss the biggest trading days when the big gains are made.

You’ll see the letters HODL used a lot on social media for Bitcoin and others.

It means ‘Hold on for Dear Life’.

Because that’s really your only job here. Buy and hold.

If you do that for 4 years or more you will be up significantly.

You up for it?

B. Xx