If you’re interested in buying BitCoin, do yourself a favor and read The Intelligent Investor.
Despite being almost 100 years old, this book is a goldmine for financial wisdom. In fact, many of the lessons are perfect for BitCoin enthusiasts.
In today’s article, I’ve singled out five of my favorite quotes to help you make smarter crypto currency investments.
These tips will keep you on the right path, making smart purchases and avoiding ruinous pitfalls.
Enjoy!
1. “The intelligent investor is a realist who sells to optimists and buys from pessimists.”
Bad investors always buy at the peak and sell off during low points.
Why?
Because they only purchase assets once they’re convinced there’s “no risk.” This, ironically, leads to their downfall.
Case in point, the late 2017 BitCoin boom.
Random people with no crypto knowledge suddenly learned that BitCoin was at an all time high. “If it’s gone up 1600% in one year, imagine what it’ll do over the next 24 months!” They couldn’t imagine that prices were over inflated and the party was ending.
Instead, they let blind optimism guide their investment decisions.
Then, once the market crashed, they sold off all their “surefire assets” at an ultra low price.
(Buying In The Blue Areas And Selling In The Huge Red Circle)
Meanwhile, smart investors did the opposite.
The ideal selling point was right as BitCoin reached its peak.
And the perfect time to buy?
Whenever it dipped.
Buying during a collapse always nets a discount price.
Purchasing during an all-time high (on the other hand), opens you up to risk.
2. “All things excellent are as difficult as they are rare.”
If you want to make money investing (in BitCoin, stocks, or anything else), you need to do your homework.
Watching YouTube videos for investment advice or buying into coins because of a webniar rarely works well. Instead, read books, create a Twitter account to follow the experts, join a reputable forum, and set aside time to really understand the subject.
As a starting point, I’d suggest reading the following:
- The Internet Of Money (a book all about crypto, BitCoin, and other cutting edge advancements).
- The Intelligent Investor (Good, all-around financial advice).
- Predictably Irrational (An excellent book on human behavior, a major component of any marketplace!).
Three good starting points for your journey. And, as you continue, you’ll find more books and resources to help meet your needs.
3. “Invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price.”
Do you want to stay up until 4 AM watching charts and hoping to unload cheap cryptos once they’ve gained an extra $0.001 in value?
Probably not.
In fact, this is a red flag in many traditional investment avenues. Buying and selling low-value cryptos is a lot like trading penny stocks or trying to cash in on pump and dumps.
It may work occasionally, but in the long run it’s going to eat up lots of time and energy for marginal profits.
To give a stock example, this is like trading ten thousand $0.07 shares of an obscure company, verses buying $700 worth of Coca Cola stock (or making an even safer play and purchasing a couple shares of SPY).
There’s a lot of risk and excitement, but you’ll get a much better value from investing in long-term stalwarts.
In my opinion, BitCoin is the face of crypto.
It’s the household name that everyone thinks about.
If you’re looking to make an investment, just buying BitCoin is a safe, intelligent play.
4. “A speculator gambles that a stock will go up in price because somebody else will pay even more for it.”
Remember all those “hot cheap alt coins?” The ones guaranteed to make you rich?
If yo do, then you’ll probably remember how many of these turned out to be scams. They capitalized off human greed, getting people into worthless assets.
These speculators prayed for ProduceCoin or SimCoin to become the next Ethereum.
Not because of technological innovations or anything useful, but because they thought others would cash in on the craze too.
Don’t make this mistake.
If you’re going to buy alt coins, make sure that there’s an actual reason behind your investment. Don’t bank on “Other people will want in” as your only motive.
5. “The intelligent investor gets interested in big growth stocks not when they are at their most popular – but when something goes wrong.”
There’s a lot of money to be made through buying dips.
Whenever BitCoin “crashes” treat it like a discount. Buying up cryptos when they’ve dropped 10 – 20% gives you a huge advantage.
At this point, all you need to do is site tight and hold on to your assets until prices surge again.
Once they do, you’re getting huge gains on your initial investment.
Final Thoughts
The Intelligent Investor is an excellent book, teaming with crucial information and as relevent today as it was 60+ years ago.
If you’re buying any assets (including BitCoin), you owe it to yourself to give this book a read.
It’s got tons of high-quality content which helps guide you towards the best and most profitable financial decisions.
P.S. If you’re looking to start investing in BitCoin, I suggest CoinBase. It’s an easy to use website, and they’ll give you $10 in free crypto when you sign up using this link.
