Investment is a simple hustle with very basic laws. What makes it more challenging is the interference of the emotions in our investment decisions. Though " buy low and sell high " sounds reasonably good for all of us, applying in the real life turns into a big trouble as your brain constantly dictates you to be cautious about more losses with another mistake of purchasing high.
Seeing that people are unpredictably spoiled in terms of applying their strategies with money, there have been several sets of rules developed for investment. Being one of the most popular in crypto, the Dollar Cost Averaging might be one of the progressive and best performing strategies with strong fundamentals.
Both DCA and other investment strategies tell you a couple of things:
1 - Buy when the prices (not the intrinsic value) are getting lower
2 - Do not look for the cheapest (dip) levels
3 - Constantly grow your hodling
4 - Count the number of assets, not their USD value
5 - Set the levels to buy and sell earlier
When someone starts stacking Gold and Silver, the earliest months might be red or the prices may not catch up with the monthly inflation. Yet, when you look at the long - term performance, the assets are always outperforming the inflation of USD as they are savings.
A similar strategy applies to crypto and stock investments. If you are piling up cheap crypto knowing that the mega bull will compensate for all the suffering you experience, do not consider today's USD value, focus on the number of coins.
While DXY is not stable, it is not logical to consider the value today than the time when the index is lower.
If the DXY hits 120 again, I do my best to increase my Bitcoin allocation in the portfolio. Until it hits 120, my purchases continue at 105, 110, 115, and the biggest portion at 120.
Even though $1 is $1, the purchasing power changes depending on the standards of the time.
Similarly, If the DXY hits 70 - 80 levels, which may mean that Bitcoin will be around $120K - $150K or more, I'd start to shift from assets to USD, as well. This is the reason why the valuation of today can not reveal the reality.
60K Bitcoin when DXY is at 70 is totally different from 60K Bitcoin when DXY is at 120. While one might be the bottom whereas the other one is the top. If we are in the middle at 105 today, then there is room for both sides 😉
What do you think about the valuation of assets today?
Share your thoughts below 👇
Hive On ✌️
Posted Using InLeo Alpha
