Although the current state of the markets is frightening and is probably only going to become worse, this does not mean that investors should remain passive. Indeed, history demonstrates that one of the ideal times to purchase Bitcoin (BTC) is when there isn’t any conversation about it.
Do you recall the crypto winter of 2018–2020? I do. Almost no one was discussing cryptocurrency either positively or negatively, including the mainstream media. Smart investors were accumulating during this period of protracted downturn and protracted sideways chop in order to be ready for the next bull trend.
Of course, no one could have predicted “when” this parabolic surge would occur, but the example is just intended to show that even in a volatile market for cryptocurrency, there are excellent ways to invest in Bitcoin.
Some Points On How To Approach Bitcoin
Through dollar-cost averaging, accumulation
When making long-term investments in assets, it is beneficial to be price agnostic. A price-agnostic investor will choose a few assets they think in and keep adding to their investments. They are impervious to value changes. It makes more sense to simply dollar-cost average (DCA) into a position if the initiative has solid foundations, a robust, active use case, and a robust network.
Trade the trend and buy when it is at an all-time low.
Investors should be accumulating a war chest of dry powder and merely sitting on their hands while they wait for generational purchasing chances, in addition to consistent, moderately large dollar-cost averaging.
Do nothing, until the trend changes
Trading in a bear market is challenging, and the main goals are to protect your cash and portfolio. Because of this, some investors find it better to just wait for proof of a trend change. The trend is your buddy, as the phrase goes. If that was you, then wait for the next bull trend to arrive and go be a happy-go-lucky genius then. Everyone is a genius and a great trader during a bull market.