RE: What caused the drop in Bitcoin? Hint: It might not be what you think...

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What caused the drop in Bitcoin? Hint: It might not be what you think...

in bitcoin •  7 years ago 

There's manipulation in all markets: forex, stocks, bonds and now cryptocurrencies. As small retail traders, the best we can do is always be prepared. Have a plan before you invest. Some questions that all investors should ask themselves before buying any cryptocurrency.

  1. What is your investment timeframe? 1 month, 1 year, 5 years, 10 years?
  2. If you do buy a crypto at a certain price and you believe that it's going to go up, don't buy all at once. Set a target (e.g. I want to accumulate 1 Ether) and buy small amounts (say 0.2 ETH). If the price goes down, see whether you want to accumulate again (add another 0.2 ETH). In this way, you'll eventually accumulate what you want (1 ETH) at a lower average price than if you invested a lump sum all at once. In fact, if you do this, you're actually following the big boys.
  3. If you do accumulate enough and the price goes to the Moon, consider selling enough to recoup your original investment. Then leave the rest to continue. This step is optional.
    As the saying goes "if you can't beat them, join them!". Trade with the big boys and enjoy the profits!
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