BitCoin Boom! (My Portfolio Is Up 20% In Under A Month)

BitCoin Boom

This second entry into my Crypto Quest series feels long overdue. Mainly because of the rocky bear market that’s dominated the entire summer. Nevertheless, things are picking up with an unexpected BitCoin boom.

In this post, I’ll share my experiences with the recent surge. Plus, you’ll gain key insights into dealing with stagnate and “hopeless” markets.

Here we go!

What “Timing The Market” Is Actually Like

Most investors (myself included) fantasize about buying assets at their lowest point, then selling them off for massive profits.

It’s a great idea, in theory.

When push comes to shove and it looks like everything’s tanking, you’ll hesitate. In fact, that’s just what happened to me.

As BitCoin dipped below six thousand dollars, I made a small, fearful investment. After that, I refused to buy anymore.

Unlike past dips, this one really scared me. As such, I didn’t buy too much during the correction. Instead, I focused on dividend paying Crypto Coins and traditional index funds.

I missed out on bigger BitCoin returns this way, but I won’t lose any sleep over it. As Peter Lynch observes, “you don’t lose money on investments you didn’t make.” My small bet paid off, I bagged a nice 20% return, and that’s good enough this time.

How To Capitalize Off A BitCoin Boom?

Crypto surged 10% in one day.

That’s huge.

And once it skyrocketed, I sold off all my BitCoin.

Why? Because they’ll probably be another correction soon.

Better to take the money and run, while reinvesting during the next downturn, then to leave it vulnerable to crashing. This is a good strategy for playing the dips, and it lets you cash out on top, before buying back in at a lower point.

A simple technique, but one that’s insanely effective.

Key Takeaways

There are a few key lessons I want to re-cap before you go. These are all good tips to keep in mind during the next boom/bust cycle and you can learn a lot from my mistakes.

Here’s what to keep in mind:

  • Timing the market is near impossible. You won’t know when you’ve reached the lowest point. And, market recoveries are never guaranteed. As such, going “all-in” is psychologically tough.
  • Never play with money you can’t afford to lose. When there’s a crash, don’t risk too much money “buying the dip.” Many traders try this and it backfires spectacularly. Instead, invest whatever amount you feel comfortable with. This way you aren’t suffering a major lose if things don’t recover. It’s better to earn 20% on $100, than it is to lose 100% of a $10,000 “investment.”
  • Cash-out high in volatile markets. If the market experiences frequent corrections, cash out while you’re ahead. This lets you enjoy your gains, and it gives you the funds for reinvesting during future downturns.
  • There’s always another opportunity. Don’t beat yourself up for missing the recent Crypto surge. Something else will come along soon enough, and you’ll have plenty of time to capitalize off that.

Keep your eyes open, and you’re sure to find plenty of great opportunities in the near future.

Anyway, that’s all for today’s article. Good luck out there!

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