It’s so hard to tell when you’re in the midst of a bubble.
As tokens like Bitcoin and Ethereum continue to rise, it’s so easy to get caught up in the favorable tailwinds.
The principles we learned from Benjamin Graham tell us the fundamentals are what matter. Invest in businesses, not in stocks. Sticking with slow, stable growth is always a good idea.
Nobody knows when or if the price increase will ever end. I know very, very little about cryptocurrencies, so it’s a total blind guess whether it continues to go up or tanks tomorrow.
My strategy is to put some change into Coinbase (here’s my referral link) and let it grow, and then play purely with the house’s money. That way, if it goes big, then I’ll pull the classic small-amount-becomes-relatively-significant trick. If it crashes, then I haven’t lost the principal investment.
But man, it’s hard to convince myself to do that when the potential upside is enormous.