Crypto-asset investing is not for the faint of heart. The pricing movements are VERY volatile. The crypto market is open 24/7 and you can easily go insane trying to interpret every price change.
For instance, Bitcoin and ETH have fallen off a cliff in the last 24 hours, likely prompting some panic selling.
The daily price information with crypto (just like with stocks) can lead to information overload. Information overload is constant problem and it is not your friend.
The easy way to avoid information overload is to have conviction in your investment thesis. To be a successful investor you need to keep the big picture in mind and learn to look at your investments with the correct lens.
If we change the lens for Bitcoin and ETH, the performance looks just fine.
We are in the information age and because crypto markets are open 24/7, you’ll have a constant barrage of data available to you at your fingers. However you don’t have to pay attention to it. Before you invest in anything, understand why you’re investing, and what time horizon you are looking to invest.
I am a long term investor. So I look at my investments long term. These daily pricing movements don’t affect me as long as I haven’t reached that time horizon, I don’t need to harvest losses, and my investment thesis remains correct.
Before you invest in anything understand why you are doing it. If you can’t answer why, don’t invest. Its as simple as that.
As always if you have questions or concerns regarding creating an emergency fund, investing, real estate, insurance, or planning for the future, don’t be afraid to speak with qualified financial advisor. Smart Asset has a great tool to find an advisor in your area or feel free to email me (contact@surgifi.com) to help you on your path to financial independence.
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