In 2013, BitCoin died. The price fell from $266 in April, to $70 in June. A massive drop, proving that crypto currencies were just a fad.

During that summer, I was 19 years old and making $400 a week at my retail job.

I wanted to invest $200 a month into BitCoin, but “sensible relatives” talked me out of it.

“BitCoin’s fallen from it’s all-time high. It’ll never recover. Put your money in a savings account, you’ll need it for college instead.”

What happened?

I saved $2,000 for the entire summer.

Had I bought BitCoin, I’d have still saved $1,400 and owned six BitCoins. At the moment, that’s about $50,000 in value.

Talk about missing out.

How To Capitalize Off A Coin Drought

(BitCoin During The First Crash)

A coin drought is the period of instability after cryptocurrencies crash. The market fluctuates wildly and news stories are nothing but doom and gloom.

The result?

Nebbish investors sell off, driving prices down even further.

If you’re smart, this is the perfect time to buy.

You get your cryptocurrencies at a reduced rate, making it easy to sell once prices climb back up. If you’ve got the guts, it’s an excellent system for turning profits.

Here’s my simple formula for low-risk survival (and thriving) in a coin drought:

• Never invest money you can’t afford to lose (On the off chance BitCoin really is “dead”).
• Don’t obsess over prices (If you know it’s a drought, there’s no need to examine your balance every hour).
• Invest a consistent amount (Don’t overload on a one-time purchase, instead invest the same amount each week while the drought continues. It’s a boring but safe alternative to “timing the market”).

Like I said, this is a simple system. It’s also pretty safe. You aren’t throwing down $10,000 to buy the dip all at once. And you aren’t exposing yourself to serious financial risks with borrowed money or spending more than you can afford.

Final Word

A coin drought provides lots of opportunity. Especially if you’re a new investor looking to purchase BitCoin cheaply.

The sell-offs and fearful attitudes drop prices to an affordable rate. And a shrewd buyer will use this to their advantage. It’s a little scary, but profitable.

Luckily, reducing risk is easy.

Don’t buy more than you’re comfortable with, and don’t worry about daily fluctuations.

Invest a flat amount each week, and check the crypto markets sporadically.

Once things have recovered and prices rise, it’s time to cash out for a healthy profit.