Crypto market collapse
As from today, angry bears have smashed down hard on the crypto market, driving down the price of Bitcoin to below $30K USD. Regulatory crackdowns on crypto happened around the world particularly in China and the threat of COVID-19 delta variant all contributed to massive selldown this week.
Price of Ethereum
The price of Ether has been maintained below $2500 USD over the past one month. Since the beginning of Jul, its price has been steadily going down (currently around $1700 USD) at the time of writing. I have seen this dip 3 times for the last 3 months including the recent price drop. I missed the other 2 opportunities earlier and I will not miss this chance again.
Reason for buying
Why ether not bitcoin? Bitcoin is the original and the most recognized cryptocurrency by many merchants around the world. It is a deflationary currency and limited supply which also know as ‘digital gold’, a store of value. Ether uses an open-source technology that allows developers from all over the world to create new applications on the blockchain and can create ‘smart contracts’ without the middleman. I personally believe in crypto having more use-cases and in this case, Ether, DeFi (Decentralized Finance) & NFTs (Non- Fungible Tokens) are some of the applications that Ethereum ecosystem supports.
I know many folks waiting on the sidelines for the price to drop further and buy in at a lower price. I have not come across a single person who bought at the bottom (lowest price), thus you need to have a target price in mind before the dip happens. In this way, you eliminate the emotions of trading – which price to buy or sell at. Trust me! At the same time, I firmly believe that DCA (Dollar Cost Averaging) as well is the way to go. You can google DCA and find out what is it all about. ‘Old Birds’ (been through it all) will understand the emotions of buying and selling of investment assets, in this case crypto assets. For newbies, you need to go into the market to appreciate what I mean. Can you imagine trying to score a goal without knowing how to kick a ball?
It is for these reasons that I decided to go in at this price and time. Some may ask why I think crypto is a viable investment. I was exposed to Bitcoin investment back in late 2017 but thought that it was a hype, gave myself some reasons (I forgot) to brush it off. Fast forward to today, I missed gains of 1000% and I take it as my own mistake for not finding out more. This remains one of my biggest investment-related lesson learnt and it totally changed my perspective on how should I approach new ideas and new ways of doing stuff in this fast changing world.
In early May crypto assets prices were going through the roof! This caught the attention of many investors who only dabbled in traditional investment vehicles gold, stocks, bonds etc. I decided to buy in without doing much research and I guess this is what they call FOMO (Fear Of Missing Out). Sadly this went on for only another week before everything came crashing down. I lost quite a bit to date and this piqued my interest to find out more about it. Once I understood more about crypto, I felt that it is going to impact the world especially DeFi. I understand now why back in 2017 I was not convinced of blockchain technology – I was not aware of its uses and contributions to the world. Finally in 2021, I was totally ‘mesmerized’ by blockchain technology and its utility in the near future.
Some say that blockchain now is like internet of the 90s. Can you imagine a world without internet? Blockchain technology will going to be an integral part of our lives in the near future. I had bought $5K USD worth of Ether at around $1750, $1850, $1950 USD, still leaving some dollars in my warchest for the next opportunity. Overall, I am satisfied with the amount I bought and will continue my crypto journey.