Crypto Market - Catching the falling knife or an opportunity for DCA
The crypto market is making me feel that I'm just catching a falling knife. During the previous bull run the price of Hive was over 1.5 $ for a very long time. That was when I really wanted to invest but the price of Hive was very high to invest. I did invest around 2000 $ back then on SPS and received only 2000 SPS but today I have close to 100k SPS and my SPS value is not even 1600 dollars.
This article is not to bad mouth the crypto market and my investments but a caution note to the investors to make sure they are not catching the falling knife because I did that. Whenever the price of Hive goes down I used to feel that it is a great opportunity and buy a lot of Hive. But when the price goes up, I wouldn't book my profits thinking that Hive might go further up and miss the bus. The price of Hive would then come back to what it was before.
About a year back I used to feel the price of Hive was very high and I couldn't make an investment. Today the price has improved so much making it the best buying opportunity but I'm still hesitant a little bit to purchase. For 40 cents Hive price, I already thought that it was a great opportunity and I already bought a lot of Hive. I liquidated all the HBD from savings and bought Hive for that. Now after looking at the price of Hive at 28 cents, it is so tempting but I don't have enough HBD to do it.
Dollar Cost Averaging
This is a great concept that many investors talk about. We shouldn't see this investment as catching a falling knife. For some people, this might be the case. I'm a good example of that but in a way, it is also DCA where my overall bought value would be very less when I make use of all the low-price opportunities. For some people, the bought price would be around 1$ for Hive and they have to wait for a long time to book their profits. But in my case, as I'm continuously buying whenever I have the opportunity, I would consider it as DCA and I will already be in a great position to book my profits if the price of Hive hits 50 or 60 cents.
I would say it would be beneficial only if I complete one cycle. I consider buying as the start of the cycle and continuous buying as part of the process and then waiting for the price to pump and then selling the holdings for a nice price and waiting for the price to go down again and then buying at the low price again. I consider this whole thing as a cycle and this is what will bring us success in any type of trading. Just watching the price move up and down is not going to give us any benefits.
Really a buying opportunity
Today I was recollecting my mindset a year back. We have been in a situation where the price of Hive was close to 17 and 19 cents. I personally bought Hive when the price was around 11 cents and it stayed there for a very long time. At the same time, I have also seen the price of Hive hitting 3 dollars and I was there watching it happen when it happened. Today I was comparing my mood during both occasions.
When the price was very low, my mood was like if I'm doing the right thing or not. I was only in a position where I have to sell and book some profits. It was right opposite of what I should be doing in a bear market. I compared it with the mood I had during the bull market when the price was around 1.5 dollars where I thought I missed the opportunity to buy when I saw Hive saying near 24 cents for a very long time. Today I see that opportunity to buy and I don't want to regret not buying Hive when the market recovers and the price of Hive reaches over 1 dollar again.
The most confusing part of the buying opportunity is if I should be purchasing Hive or if should I also focus on other coins as well. The reason is because the value of most of the coins is low and we know for a fact that it would recover for sure. I think investing everything in Hive is like putting all the eggs in the same basket but the Hive ecosystem is a place that I know very well and I know how it would behave for the market conditions, so I think this is the safe place for me comparatively.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
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DCA seems to be a good deal for sure, I converted 500 HBD a few weeks ago and I do regret that 😅. Now I am planning to convert all my saved HBD to HIVe lets hope the hive price will stay like this for a few more days. 😇
Better to go for conversion in cycle...rather in one lump sum.
Sahe kaha sir ji , but lagta hai Etna patience nahi hai apne andar 😅
Aha chote bhai bad luck!! 😂
Esa he hai kya kre aab koi ne jab pump hoga sab recover ho jayega sayad 😬
Yeh to shai hain... Hope for the good
I'm planning to convert my remaining HBD too but I will wait a couple of more days and watch. 🙂
aha sounds like a good plan for now, but the market is struggling to show some good pump so anything can happen. good luck
!giphy good luck
!PIZZA
Yeah true. Anything can happen. 🙂
dekte hai kya hota hai 🧘♂️
It's very sad. Actually no one knows the right time to buy. Hope is price doesn't fall farther 😧
I would say it's still the right time to buy if the intention is to hold it for long term. 🙂
Great post @bala41288.
I guess every crypto users is contemplating right now on if to buy hive at this low rate. The price might drop down next week, but it is certain that the bull market is coming soon.
Even if the price drops, it is still a good price to buy hive.
DCA!🤩🤩
Hell yeah 🙂
$PIZZA slices delivered:
@bhattg(1/10) tipped @bala41288
Trading with other coins will probably give us similar results but its good to stick with what we understand. More opportunity for huge profits if Hive drops further :)
We can make the same profits if we trade with the coins we know very well. 🙂
Timing the markets is always risky and very few people actually get it right. Maybe in a macro bull you can do short trades when you see the wave going up or if the market feels too hot, but with all of the uncertainty right now best bet is to DCA or wait it out. My hope is that the regulatory actions lead to some clarity which makes it easier for big money to jump into the space. Then we'll know it's time to jump back in the water fully.
Yay! 🤗
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This is a time that can be very beneficial for all people if people who have already bought things can now reduce their duties by buying from the bottom and those who are still inside the market. Didn't take entry they have very good opportunity now they will invest money now then within next one year there will be huge profit.
I had very little amount of HBD, which I already converted to the hive, that was a good chance.
I'm going to do that too in a couple of days