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rajatsonifnance / Rajat Soni, CFA
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2024-04-20 22:32:26

rajatsonifnance on Nostr: I first started paying attention to #Bitcoin in 2020 (before the third halving) My ...

I first started paying attention to #Bitcoin in 2020 (before the third halving)

My friend told me to buy some because the price was below $4,000, and very low when considering the previous peak

I thought I was smart, so I'll just wait until it drops to $3,000 or $2,500 so I can buy more

The price never dropped below $4,000 again

If you think you're smart and you're trying to time the market, DON'T

Just buy what you can and set it aside while you continue to accumulate more over time

Maybe 6 months from now Bitcoin will be at $40,000 and you will have the opportunity to buy ~60% more

But what happens if Bitcoin's price goes above $70,000 and NEVER comes to the $60,000 level again?

Remember:

You can buy fractional units of bitcoin

You don't have to have whole coins

In 20 years, when Bitcoin is worth significantly more than it is today, your fractional units might be worth enough to pay off your mortgage or buy you a new car

Focus on the fundamentals of the asset:

There will NEVER be more than 21 million Bitcoin

There will ALWAYS be more fiat currencies printed

Maybe the price goes slightly lower in the short term

But you should be protecting yourself against the price going MUCH higher in the long term while you have no exposure

My biggest mistake was thinking that I was smarter than the market

Don't do what I did in the past

Now that I understand Bitcoin at a much deeper level, I have figured out that buying at any price is a good decision if you have a long enough time horizon!
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