Expand Summary
The author has decided to refrain from investing in cryptocurrencies unless Bitcoin (BTC) and Ethereum (ETH) drop to 56k and 2800 respectively, despite a previous successful investment and a bullish market sentiment.
Abstract
The author of the article has a history of successful investment in cryptocurrencies, having bought Bitcoin at 19,000 and later tripling their investment. Despite the current optimism in the crypto market, with Bitcoin reaching its highest historical price and predictions of further growth, the author has chosen to withdraw from the market. They sold their holdings when Bitcoin approached 64,000, adhering to a predetermined exit strategy based on technical analysis. The author plans to re-enter the market only if Bitcoin reaches a price of 56k or less, and Ethereum at 2800 or less. They intend to employ a dollar-cost averaging (DCA) strategy with a set amount of $10,000 to purchase BTC and ETH daily until the fund is depleted. The author’s decision is grounded in a risk-averse trading philosophy, emphasizing the importance of knowing when to sell and being content with the profits already made, rather than holding out for potentially higher returns in a volatile market.
Opinions
They acknowledge the diversity of trading styles, recognizing that their risk-averse approach may differ from other traders who are more willing to hold long-term positions or take greater risks.
The author has a positive view of the cryptocurrency market’s potential but prefers to wait for a price correction before re-investing.
They believe in having a disciplined investment strategy, including setting entry and exit points based on personal comfort levels rather than market hype.
The author values the safety of their investment over the possibility of greater returns, indicating a conservative approach to risk management.
They have a pragmatic approach to trading, focusing on actual gains rather than speculative hopes.
The author is satisfied with their past investment returns and does not feel the need to chase higher prices in the current market conditions.
Cryptocurrencies are currently at their best moment.
BTC is at its highest historical price; many people are betting that the price will double by 2025, and it has had stable activity for the past three months.
Everyone believes that this will be a very good year for this market.
I have always trusted this market. I bought one BTC when it was $19,000 in 2022 and tripled my profits at the beginning of this year. In general, Cryptocurrency has been an important part of my portfolio for many years, and I feel it is a good option for making money quickly.
However, when it reached a price close to $64,000, I sold everything I had and took out the broker almost everything (I only left 15,000 dollars in the account).
This is why I will not invest in this market again until this happens first.
I will only buy BTC again if it ever reaches my new desired price.
The only way I would invest in this market again is if:
- BTC reaches $56k or less.
- ETH reaches $2800 or less.
In the meantime, I’m not interested.
This is not an analysis I did based on anything; it’s just a price I feel comfortable entering.
If prices drop, I will use around $10,000 to enter the market again. This is a third of the amount I earned with BTC alone in these two years. My strategy will be to buy a portion of DCA daily (for example, $50 per day of BTC and ETH until the fund is consumed).
I also have a withdrawal price if everything goes wrong.
The rest of the money I earned has already been invested elsewhere.
I know BTC has the potential to reach 100,000 in the next nine months, and I’m looking forward to seeing what this market does in the next few days to achieve that goal.
But I won’t be a direct participant in it for the moment, especially since the prices aren’t going down.
But why am I waiting for a price that will never come if I trust the power of this market?
I don’t invest to be hopeful—at least not with the money I have right now.
I sold everything months ago because, according to my technical analysis and earnings at that time, it was time to exit the position.
One of the hardest things to do as a trader is to know when it is time to sell, especially when everything is so positive. Therefore, when I bought Bitcoin in 2022, one of the things I always had in mind was to exit my position when my analysis was fulfilled.
In this case, it was when BTC reached 60k.
Many people told me that it made no sense for me to exit the position at that time because the market had not given me any signs that it might collapse.
However, my money had already tripled. According to my Excel spreadsheet, it was the plan I had made years ago, so I made the right choice.
I created a strategy for a reason, and I didn’t want to lose everything again just because I believed everything could go better.
When I started investing, I lost a lot of money because, in my mind, everything was always going to go up and up, and after learning the hard way that that was never the case, I decided to choose the type of trader I wanted to be and start learning what was the best way to continue in the market.
I already earned three times the amount I entered, and that’s enough for me right now. I’m a trader who likes to play safe, and I’m happy that everything has resulted in the way it has these two years, so I’m fine with the outcome regardless of what happens to the prices from now on.
I know this market is powerful, and it is likely that I will not see the prices I want for the next two years. But I’m satisfied with what I’ve achieved so far, and that’s what matters.
There are many types of traders.
Some are excellent at managing risks, while others focus only on safe plays. Many are interested in being in a position forever (or at least long-term), while others understand that if they earn a certain amount of money, they will be satisfied.
In my case, even if I want to believe in a market faithfully, I like to play it safe. I know that the Crypto market is risky, especially in these times when you don’t know what can happen, and the best thing in my case was to sell everything for the moment.
In business, you must know what you are willing to gain and lose, and this is a number that I am perfectly clear about.
I admire those who can wait more, but for now, I will see all of you succeed until my time comes again.