Last week saw a surge in Crypto Currency prices. Everything shot up fast, only to come crashing down. And a lot of people hopped in at the wrong time, ultimately losing money. Because of this, today’s article shares the best BitCoin lesson you’ll ever learn.
It’s a simple piece of advice, but one worth following.
Head this rule and you’ll save yourself tens of thousands of dollars over the course of your investment career.
Ready?
Here it is:
“I never buy at the bottom and I always sell too soon.”
This is a famous quote from Baron Rothschild, and it’s a great piece of advice no matter what you’re investing in.
I personally use this advice for stocks, bonds, and Crypto. Knock on wood, but I’ve never lost money with any of these.
Let me explain.
Why Is This The Best BitCoin Lesson?
When it comes to investing, most people jump in at the market’s peak. Think about Crypto in late 2017, you had people taking out loans to buy BitCoin at $18,000 a piece.
Same goes for stocks, many investors jumped into tech companies at their all-time highs during the dot com bubble. And more recently, pot stocks became a hot commodity right as they peaked.
Following Baron Rothschild’s advice, you buy an asset on it’s way up (but not at the top), then sell before things peak.
This sounds tough, especially for an asset as volatile as BitCoin.
However, a little chart watching and some common sense will often key you into where the price is heading.
Just take a look at this one month chart:
You can see prices slowly starting to climb long before they skyrocket.
A smart investor might jump in during this stage, then sell off once the massive surge begins. Doing so let’s you reap all the rewards without overstaying your welcome.
Closing Thoughts
Whenever you see some asset making massive gains in a short time frame, stay away.
It’s often a bubble and you’re usually too late.
Instead, head the advice of Baron Rothschild. Invest in assets which are slowly gaining in value, then sell before they peak.
Doing so will make you very, very wealthy.
P.S. Waiting for the next BitCoin boom or Crypto opportunity? Why not park your money in a CIT high interest savings account while you wait. CIT pays 2.45% interest, growing your funds risk-free.
