Time for me to Buy Cryptocurrencies (August 2018)

I have been involved with cryptocurrencies since 2010. Multiple times I have seen them spike up in a speculative bubble, only to collapse down to prices 90% off from their peak. The most recent price spike (in December/January) was driven largely by hype around Ethereum. I sold cryptocurrency during that hype, and I set cash aside, hoping to buy back during the subsequent crash. I decided I would start buying at 80% off the peak price, and be fully invested again if we hit 90% off.

Well, my friends, today Ethereum is more than 80% off its peak. I expect it to keep falling, but just in case, I put some cash back into cryptocurrency. I will buy more at 85% off, then again at 90% off. I plan to diversify into other coins as well during this buying opportunity.

I’m not trying to call the bottom. It could drop to 99% off peak for all I know. But I do know that I’ve seen this pattern several times before, and if the pattern holds, after all the weeping and bloodletting, the best projects eventually enter a new hype cycle and rise to new record heights that make the old highs look pitifully small. I’m not your investment advisor, and past performance can’t predict the future, etc. But I’m buying. If you have money you can afford to completely lose, now is definitely a better time to get into cryptocurrency than during the hype a few months ago, and even better (lower) prices may be just around the corner.

Please never put any money into cryptocurrency unless you can afford to completely lose it. Even if you don’t lose it all, the volatility requires a cast-iron stomach. Keep in mind that if you buy at 80% off peak, and the bottom is 95% off peak, you’ll have lost three quarters of your investment. I’m not advising YOU to buy. I’m just telling you what I am doing so I can say “I told you so” later. :)