If you’re scared to buy Bitcoin at the all time high — do this
As Bitcoin’s price keeps rising, more and more people hear about it and want to join the party. This might be you. And maybe this is the first time you’ve ever made a financial investment in your life.
But when is the right time to get in?
Wouldn’t it be crazy to buy when it’s at the highest price it’s ever been? What if it drops a day later?
On the other hand — what if the price never ever falls again and you regret that you didn’t buy earlier?
Highly unlikely, but that’s exactly your dilemma, isn’t it — swinging back and forth between FOMO and patience, FOMO and patience…
So when is the right time to get in, if you don’t want to lose money, but you also don’t want to risk missing out?
Now is the right time to start, but you don’t have to go all in.
This is what you do:
At the time of writing this post, the Bitcoin price is at around $1,800. So if you have set aside $1,800 for your first Bitcoin, don’t spend it all now. You have several options:
1. You could spread it over the next 18 days and purchase in instalments of $100 a day.
Today, $100 would get you around 0.055 BTC. Tomorrow you might get a little more or a little less for it. If the price keeps rising, you’ll be happy on day 18, that you started early.
If the price falls, you’ll be happy that you’re saving money and get more than 0.055 BTC for your $100. Your average price at the end of the 18 days may be lower than the $1,800 you would pay today. Or it may be higher. There’s just no way of knowing 😉
2. You could say, “I want to buy 0.1 BTC once a week until I have a whole Bitcoin in a few months.”
In that case you wouldn’t spend a fixed Dollar amount every time, as in the first example, but the price would vary based on what 0.1 BTC is worth in that week. Today it would cost you around $180. Tomorrow it may be $200 or only $150.
3. You could also do this: buy more Satoshis when the price is low, and less when the price is high.
This might take a spreadsheet to work out, but if you buy less when the price is high, then your average price at the end will of course be lower.
In that case you would use today’s price of $1,800 as your base line, and decide how much more you will buy when the price is 10%, 20% or 30% lower, or how much less you will invest, when it goes the other way. Depending on which way the price goes, it will take you more or less time until you have your first whole Bitcoin.
What’s important is the average price you paid in the end.
It may be quite different from what Bitcoin’s price is today. It may be a lot lower. And if the price keeps going up, you can make a new choice every day. Maybe you decide you’ve had enough after you invested, say, $400. Then you also saved some money. Sort of. ;)
This is a gradual way to ease you in and get you used to price movements. You will notice that — even though you want the price to rise, because you want to make a profit in the long run — you will be very happy when it falls, because then you get to buy in cheaper! This way you will make even more profit when it rises again.
This gradual investment plan is the best cure for FOMO!
Of course this doesn’t only go for Bitcoin. It goes for Dash or any other coin or asset you want to invest in. Pick the one you believe in most for the long term.
Only ever invest as much as you can easily miss.
This is another reason to gradually invest, instead of going all in. $1,800 may be a lot of money for you all at once. So pick an amount per week or month that doesn’t hurt you. And if one month you can’t afford it, just skip it and use the money for more important things.
The great thing about crypto coins is that you can buy fractions of them.
You don’t need to buy a whole Bitcoin or a whole Dash. In fact, if you have $50 a month to invest, you could spread it over several different coins. They all grow at different rates, and some coins might turn out to be losers, but the winners will compensate for your losses.
This is a great way to gently and conveniently start your own private pension fund. If the Bitcoin really does go up to $100,000 or a million one day — how soon could you retire if you start now?
And if you have kids — split your $50 and put something away for them, too.
You — and your kids — will one day be very grateful you got started today!
This story was originally published on Steemit.
About the author:
Anja Schuetz is a Customer Service & Operations Management Consultant and a Cryptocurrency Mentor for women. She works with newbies in 1:1 sessions and in her Conscious Crypto Community. She’s also written a Beginner’s Guide to Steemit, which is available on Fiverr and through her own website.