And can teach you some valuable life lessons
I felt a range of emotions when we hit $100,000 for Bitcoin last month, and I’m sure you did, too.
— Relief that we finally made it.
— Anger and disappointment for not buying more when prices were significantly lower, and frustration towards those who have refused to listen to me for over seven years.
— Euphoria after hitting this incredible milestone that remained a pipe dream for most of Bitcoin’s existence.
Above all, I am grateful to those who’ve brought Bitcoin and altcoins to my attention and self-appreciative for sticking by this through thick and thin.
Much of this boils down to two things: Patience and perseverance.
You can tolerate any market if you can withstand wild price fluctuations and brutal bear markets (yes, plural) in this asset class.
I understand much of this applies to emerging stocks that take years or even decades to gain significant traction.
However, digital assets’ highly volatile nature can make investing in them an emotional rollercoaster, particularly when you’re heavily invested in this space.
I’ve told people with heart conditions, especially those who are very risk-averse, that it’s probably best to avoid investing in Bitcoin and altcoins.
Mind you, this persistence is a delicate balancing act between maintaining faith in crypto assets that will most likely make it in the long run and swapping out the duds that are unlikely to return to their former glory.
I know the temptation to leave those assets alone if they pump again. However, when accounting for opportunity costs, you should make every dollar count more.
In other words, that $50 — $100 you’ve got in an altcoin that’s barely moving or losing value could go to an emerging asset with significant potential, such as AI agents.
I do acknowledge this is a double-edged sword, as there’s a chance it could stage an incredible comeback. It’s best to get behind trending assets and sectors and watch out for capital rotation throughout a bull cycle.
After all, we’re here to make money, so put your emotions aside, even if this involves throwing loose change into a nonsensical meme coin to do a quick 10x, to then convert into BTC or ETH.
Looking at the bigger picture
I’ve become more patient since getting involved in crypto.
Does this mean I can sit down the entire day and watch back-to-back football games or an entire day of cricket (let alone a test match)? No, not quite. There’s always something to do.
Being actively involved in crypto since July 2017 is a useful reminder that good things take time; the journey will have many ups and downs.
Seeing the progress every 2–3 years — and the tech-disruption potential of crypto and blockchain technology — keeps me believing in this space.
Prices, developer activity, adoption, and other salient statistics don’t lie.
While there was the proverbial blood on the streets, you kept calm, HODL’d and doubled down on crypto.
Anyone convinced to stand by BTC, ETH, and various altcoins has had the last laugh.
My biggest regret was not getting a loan from a family member to buy BTC when it crashed to $5K in March 2020. Despite this, I am still happy with my holdings.
In addition to periods of self-doubt, we’ve also had to contend with family, friends, acquaintances, and potential partners ridiculing us for being involved in this.
Over the years, I’ve mentioned Bitcoin to many people, and they tell me, “It’s all a Ponzi scheme.”
I replied, “What about other cryptos?”
“Nope, it’s all a scam. I know someone who lost $5,000 because of these fake assets.”
Where I’m based, real estate is the talk of the town. It has been very profitable for many and is way less risky than Bitcoin and altcoins, so I’ll give credit where it’s due.
Yes, you can borrow against property to put into BTC (or vice-versa), but most real estate enthusiasts would prioritise subsequent housing purchases. As always, each to their own.
Nonetheless, it doesn’t matter if BlackRock, Fidelity and other corporations are actively interested in this space; many laypeople still don’t want a bar of it.
On the flip side, this means more opportunities for us to buy while prices are relatively lower, partly due to the people’s reluctance to have some skin in the game.
In conclusion, even though it’s been a lengthy wait for many of us, profits are just on paper. At some point, we’ll need to (or at the very least, want to) convert this to fiat to cover expenses or investments in other sectors.
Check out this updated guide on my crypto exit strategy for this bull cycle.
Disclaimers
• N.B. None of this is financial advice; I am not a financial advisor. You are ultimately responsible for crypto investments, let alone in any asset class.
• The opinions expressed within this piece are my own and might not reflect those behind any news outlet, person, organisation, or otherwise listed here.
• Please do sufficient research before investing in any crypto assets, staking, NFTs or other products affiliated with this space.
Featured image by user4894991 at Freepik.