Getting Into Crypto

[r0ckyreed]

Hello. I was wondering if you all had any advice for getting into crypto investing. I’m a long term investor, and I am currently 100% in VTSAX. I’m interested in investing in bitcoin and ethereum. What recommendations do you have? Do you recommend coinbase? Any common traps to avoid? Thanks.

[r0ckyreed]

So far, I have created an account on coinbase and invested $200 into bitcoin and $200 into ethereum.

[vinc3nc]

Been investing for almost 8 years. My advice is the following:

• avoid investing in any kind of alt coin in your first cycle, just stick with bitcoin
• great alt coins can outperform BTC in the short term (1 or 2 cycles max), but in the long term they all go to 0 against BTC
• beware that the bull cycle could be like 80% over already (realize that you're late)
• taking profits above 150k is a good idea, considering you've bought it above 100k (but it might not even hit 150k)
• don't listen to people who say that BTC will go to 200k-300k (those people are the reason people never sell and hold all the way down, giving all their profits back to the market)
• when everyone starts talking about crypto, even people you've never thought would talk about crypto or own it, it's a great chance the market has topped
• prepare for the next cycle as much as possible - start DCAing into BTC near the bottom of the bear market which will probably come late 2026 (unless this cycle turns out to be completely different than the previous ones which I doubt it will)
• the most profits you can make is to buy it when things have been going down for months and months and when everyone is losing hope and questioning whether or not BTC will ever recover (or when there is a black swan event - when things crash as hard as they did during covid, march 12 2020)

Edited Sunday at 09:18 PM by vinc3nc

[r0ckyreed]

@vinc3nc Wow. Thanks for advice.

I am doing just bitcoin and ethereum. I was planning on doing DCA of maybe $100-300 a month and setting and forgetting it, keeping it in there for 5-10 years then considering selling it. What would you recommend? I also don’t see why bitcoin won’t go to 200k given it has already jumped above 100k

[vinc3nc]

If your time horizon is 5-10 years, you shouldn't really care that much at what price you buy it. But if you want to optimize things, you should be buying more in the bear market.

200k this cycle would be amazing, but I dont think it will happen. Anything above 160-170k would already surprise me. And I dont care that much about price, Im expecting early October to be the top no matter what. Because that's how the previous cycles topped and Im gonna stick to that.

 

[r0ckyreed]

In the next 5-10 years, I see bitcoin going to 200k.

[meta_male]

Just be aware you might never see that money again and only invest as much as you're okay with losing. Stick with the timeframe of 5-10 years and don't cave in a bull run.

[vinc3nc]

2 hours ago, r0ckyreed said:

In the next 5-10 years, I see bitcoin going to 200k.

If it needed that much time, it would suck as an investment. Think bigger.

[hyruga]

If you buy the big caps like Bitcoin or Ethereum, the potential gain is muted. Probably can gain 20-30% only in one year if you are lucky.

 

Edited yesterday at 04:54 AM by hyruga

[vinc3nc]

@hyruga thats why timing is so important. BTC is up 7x from the bottom of Nov 2022, 600% in 2.5 years.

[LordFall]

I would say understand which kind of investor you are and your risk management.

I would highly recommend making alts a part of your strategy unlike @vinc3nc. 10-50% depending on how risk adverse you are. Also realize that crypto is not just a speculative asset, it's a technology that's just barely starting to be in use and has already changed the lives of many.

If you're into research there's thousands of hours of content to watch on it. If you're not so much into the intellectual side of it then mainly stick to bitcoin and only 10% altcoin allocation IMO. 

Mark Moss makes great videos on Cryptocurrency and how it relates to the US government. The US banking system is embracing crypto so this is a completely new cycle. I'm quite bullish on it and I see a 1M bitcoin by 2030 as pretty likely, but that's just my thinking. Doing your own research is probably the most important strategy in crypto as opposed to trusting random people on the internet.