December 4th 2020
Newcomers to crypto all have the same question, "When should I buy!?" which is why in the last newsletter I talked about buying dips using limit orders (which hopefully many of you did a few days later at $17,100!).
We're buying dips because it's year 1 (the bull year) of the 4 year bitcoin halving cycle. In the three years that follow (crypto winter), we accumulate using dollar cost averaging regardless of price.
But unless you're only stacking sats in preparation for the zombie apocalypse, at some point you should sell too, even if it's just to buy back lower during crypto winter (that's my plan). And best case scenario we sell at the top.
But how do you know when we're at the top? You don't. But we're going to try anyway using a combination of:
- Dollar cost averaging (in reverse!)
- Predictions & Valuations
- Our gut
Today we're going to talk about #3, that feeling you had last week when bitcoin was booming 5-10% daily. Some of you felt intense FOMO. Some took action wiring money to the exchange (only to discover it takes 2-3 business days). Some of you froze in disbelief, and unfortunately a few of you bought at $19,700.
For me, that tingly top of the world feeling reminded me that it might be time to sell, not buy.
Now don't worry, I don't think we're at the top (far from it), but hopefully you caught a glimpse last week of what THE top feels like. Did you feel it? It feels euphoric, vindicating, exciting and scary as shit all at the same time.
It's completely counterintuitive. Everything is green and seemingly going higher! The media is talking about how bitcoin is the best performing asset of the year (decade!?) and everyone around you is screaming BUY BUY BUY! However, the only way to sell at the top is to be the one selling to those manic noobs who are buying at the top.
Lucky for you, since you're reading this, when the top comes, you won't be that noob.
I'm going to write a lot more about planning our exit over the coming months, but for now, we need to train ourselves to recognize the selling feeling.
This was the first of a handful of booms (and busts) we'll experience on our journey to $250k between now and the end of next year. So next time the selling feeling arises, sell something!
I used last week's boom to sell bags of altcoins I'd been hodling since 2017 (for more BTC). Train that selling muscle, even if it's just a little bit! Because when the top comes, it's going to feel 100X crazier than last week.
To the moon 🚀 — @GΞR฿Z Founder & Creator @ BitLift
Tweet of the Week
This tweet is from 2011! It's an important reminder that the price of bitcoin can do things you never thought possible, and we're still early.