A Cautious Few Weeks

The last Bear market changed so many things in Crypto as staking and earning rewards became fashionable. Many of us were doing it anyway as that is how HIVE works. Not only is it fashionable it is also smart as we all know this method of growth is so lucrative. I raise this subject tonight as for the first time someone mentioned on Twitter that trading and accumulating are totally different concepts. When accumulationg price should have little impact but it does as for instance now my purchase power has lost 20% this week with what I can afford to buy.

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This is very true yet they both do help each other as one still needs to understand the market. At one stage I was buying and stacking on every dip small bits at a time and adding to my portfolio but with the upswing in prices over the last few days there is a strong thought amongst many that this could be a Bear Trap meaning prices will start making their way back down again.

I much prefer the accumulation phase when the markets go sideways as the volatility is minimal. I am no trader as I am more of a jinx as when I buy or sell the markets always go the opposite way. This is something I am learning slowly as being able to do winning trades is a gift in itself.

This is where patience comes into play as why would you jump in and buy something that has risen 20% if next week those prices could be 25% lower allowing you to purchase. This makes a huge difference to your portfolio as 25% extra is big in the grand scheme of things. I don't have deep pockets so I need to maximise my purchases to the best of my ability without leaving too much on the table. Whatever we buy now will be worth a hell of a lot more come 5 years from now so the maximising of your funds could mean a big difference in $$ value.

I do think over time you do become more cautious and make better decisions from what you have learned form the last Bear Cycle. Dollar cost averaging is what most of us do, but my head this time is telling me we are going back down so holding off for the next week is the right move and should pay off.

One would have to be a fool to be sucked into this right now as no one knows what is going to happen next. I just don't see a 30K Bitcoin this month or next month as that would just be too easy. Now watch it hit $40K but I just don't see it and could be way off my gut feel on this. We are in a recession whether we like it or not and this is different to the last Bear Cycle. There will always be similarities yet some small changes here and there will appear.

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