For years I had heard a lot of people talk about Bitcoin but I never thought of buying any until fairly recently…
On a Sunday in November last year (2020) we were at one of my cousins for lunch. At some time during the afternoon we started talking about Bitcoin. Nobody in the group had bought any yet but almost all of them had an opinion.
Some believed Bitcoin was a good investment. They believed it was “cheap” and that it was a good time to get into it. But although they believed in it, they weren’t willing to buy or give it a try because of fear and uncertainty. What if the price dropped or if Bitcoin itself disappeared?
Others weren’t at all convinced about Bitcoin. They say it’s not anything “real”, “it’s something that only exists in the cloud.” They believe more in property, gold and shares. From everything they said I don’t think they will ever believe in Bitcoin or buy Bitcoin.
I sat there fairly quietly. I listened to what everyone said. I agreed with some and disagreed with others. Despite the “negatives” I there and then decided I was going to give it a try…
On the very next day I started looking into how I could buy Bitcoin. I had seen a company advertising on tv but before just going with them I decided to look out for alternatives.
The price of Bitcoin was around $19,000 at that time. I opened an account on a Bitcoin exchange and wallet and I deposited some money into my account. It took about 2 days for the money to show in my account but in the mean time I started looking at the charts and prices a little more carefully.
At some point soon after the money was in my account, I bought some Bitcoin. The exact price I can’t remember but the price of Bitcoin for the next few weeks would range between about $19,000 to around $17,000.
Instead of buying and holding (or hodling as often called in the cryptocurrency circles), I thought I was going to make some money by trading on the price. I would buy when it dropped and sell when it went up.
I did this a few times and I was making a bit of money. I bought the dip at around $17,000 and when it hit around $19,000 I sold. This “pattern” or trend had been happening for some time.
There was lots of talk online of it going over $20,000 but at that time it kept going lower so I sold.
But then it happened… I remember watching the price live as it edged to $20,000. Then it hit $20,000 for the first time ever. It hit $20,000 and the price kept going up and up and up.
I was stupid to have sold. But what if I bought and it dropped? If it dropped and if I buy and it goes up again I will make more money. But what if it keeps going up? Am I too late to get into Bitcoin? Have I missed the bus?
So many questions….
The price didn’t drop and as I watched the chart, the price kept going up and up. $21,000 then $22,000. $23,000…. I was watching and couldn’t believe the way it was going up and I decided, “I must buy now!”
I bought somewhere in the mid twenty thousands.
“If only I never sold… I would have made more money”
The price went up and I missed the few thousand dollar price increase but where would it stop? At what amount would it turn around?
At some point I did sell again making some profit and when it dropped I bought again just to sell again when it went up.
The prices went up. Since then it broke $30,000, it broke $40,000 and this past weekend the price reached $60,000 for the first time ever.
From the day I first started my Bitcoin wallet and bought into Bitcoin, the price has tripled. If I had bought and held on I would have tripled my money. This unfortunately did not happen because of my “buy low, sell high” trading strategy.
I never really caught the lows and never really sold high enough and sometimes I ended up buying higher than I sold for because of how much the price kept going up.
I must say I have since changed my strategy and I have over the past few weeks just been holding on. If the price dips I buy a bit more but I haven’t sold. I am from now on only buying dips, I’m not selling, I am holding.
I have only made a little bit of money so far, but the last few months have been a great learning experience. Who knows what the future holds for Bitcoin and for other cryptocurrency coins but for now, they have my interest and I’m glad I got in when I did.
I’ve only put in small amounts of money because I’m still trying to learn but even once I feel comfortable I am still going to be cautious. I will never invest or risk money that I can’t afford to lose and you shouldn’t either.
Be careful, the rewards can be high bit high rewards often come with high risks too.
*Nothing in this post should be considered as financial advice.