When do enter the market
A common question I have been asked this week is "Should I wait for the dip before I buy?"
This is a fair question, with such significant moves there is always an obvious concern that you will buy, and then a coin or the market will dip. This can happen.
I always have two questions with this?
- Do you believe the coin you were going to buy has peaked and will never go above that price?
- Are you a day trader?
If your answer is no to both of these, then don't wait for the dip. Firstly the dip might not happen, second, you are holding for the long term.
You can find long-term crypto traders who felt that Bitcoin was expensive when it first hit $10, then when it hit $100, then $1,000. Similar stories exist with Ethereum when it hit $9, then $45 and then $100. Look at their prices now.
If you are interested in a coin and are investing for the long term then don't wait for a 10% dip, you might miss a +10% gain. Buy the coin, hold and ride out the moves, whether up or down and certainly don't panic.
Crypto is volatile; prices move like someone playing a yo-yo while travelling up and escalator.
I work with long-term price targets; now this doesn't mean I will sell at those prices, it just becomes a point which I will reassess. Here are some examples:
- Bitcoin, three-year price target of $10,000
- Ethereum, one-year price target of $350
- Dash, one-year price target of $200
- Monero, one-year price target of $100
One warning though is: be sure of the coin and technology. Even though the technology behind Ripple is exciting, I have concerns about the price; I am considering buying back in, but cautiously.
Any questions, then please give me a shout.