It's quite simple really.. have a plan, and stick to it.
I recently became aware of BIP 148 and the UASF. After a bit of research, I've come to the conclusion that I have 2 options, sell my bitcoin and wait for the storm to pass, or do nothing and wait for the storm to pass.
During my research phase I seriously flirted with the idea of moving all my BTC to ETH, and at 1, or maybe 2, times I was a button click away from making that trade.
In the end I decided to HODL. It took a few months to accumulate the measly amount I currently have (0.26BTC) and I would hate to see it go. If the price of bitcoin does plummet I can always look for an opportunity to add cheaply to my position.
Since making that decision, I've seen the price of ETH skyrocket relative to BTC. It would be easy for me to make an emotional decision, and I have to admit, the exchange page on my exodus wallet has seen a few recent visits. But in the end, I have to stick with my plan. I don't know enough about this space to speculate and the way I see it, what goes up can easily correct.
My overall plan is simple. Every month I will add to my position what I can spare in my budget. I will not trade, or speculate. If I stick to this plan and the market goes up, the value of my position will increase. If the market crashes, I will find opportunity to increase my position on the cheap.
There is a name for this strategy, Dollar Cost Averaging. The idea is simple, by choosing to invest a smaller amount at regular intervals, I average out the cost of increasing my position; sometimes I will buy when the market is down and sometimes when it is up. More importantly, I remove the emotion from my trades.
Over time, my position will increase in value as long as the market doesn't crash to 0.
Since we are likely still in the early adopter stage of the cryptoverse, it's quite possible that my investment could see at least 50% yearly growth for the next 10 years. I'm happy with that. If it performs better, I'll consider that a bonus.
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Welcome to Steemit :)
I follow u, follow me back if u want lot of fun and amazing picture every day.
Great article. Dollar cost averaging is a great hedge against volatility and consistently returns me profits.