Most common question these days is related to reaching the bottom! Did crypto reach the bottom?
Well, if someones tell you yes or no, he is lying or doing inside trading! We are going to tell you few facts you HAVE to know before the bull run starts!
Firstly, you will NEVER buy the bottom! Yeah, if you mean buying at the lowest price, you won't be that lucky to buy it! Maybe 1% of you will buy but not because of your skilll or knowledge but because you were lucky and your order got executed at the bottom! But, buying close to the bottom is almost the same as buying the bottom in the long run! Considering Bitcoin price $100k in future, does it matter if you buy BTC at $6500 or $5000? If it does matter for you, then wait for that bottom!
Secondly, you will never be notified that the bottom is reached! You will know that bottom is reached when Bitcoin makes 2x from the bottom price! Then the crowd will start to buy and the FOMO will kicks in! Smart investors are buying now! You need to define what is you buy area! If you think that Bitcoin is able to reach $4000, then create 5 orders and average your entry! The point is to buy something if you are looking from investmnet point of view! But never buy with the all money you have, always think about potential short-term decline that may be useful for you because you will be able to buy it lower!
Thirdly, do not say "I wish I bought XXX at XXX"
The crypto market is in obvious consolidation area! You had already alčmost a month to find your investmnet choices and probably you will have at least few more weeks! If you do not know what to buy, do these 2 simple things! Go to coinmarketcap.com and check top100 coins! First go through fundamental! If you like the coin, then go through roadmap! It is everything available online for free! You just need to spend some time and find it! Then, you are checking investmnet potential! If the coin is just 50% down from its all time high and already high cap coin, then the investmnet potential is not that high! But, if that coin is 80% from its all time high or more and it has great project with optimistic roadmap but it was in decline because of overall market downtrend, you found your potential winner! Now it is up to you to find at least 3 coins like this one, find one more low market cap coin (top100-300) and you are ready for bull run!
How to buy coins? First you need to find out the amount of money you are willing to invest in that certain coin! Then our suggestion is to use 33% of that money and buy at current price, and the rest of the money split into 2 orders that will be below the current price! Just using basic technical analysis, you may find out where is the next potential level where that coin may drop to and post the order few % above that price level!
Choose up to 5 coins! Never go all in one coin but do not invest in 50 coins, PLEASE
If someone tells you to diversify your portfolio and invest in as many coins as you want, That's the worst investmnet advice you may get and here you are the reason why!
When you decide to be an investor or trader, you are accepting the potential of losing all money you are going to put in! That's the fact! Maybe to scary but that's the fact and the majority is ignoring that fact! You may be investing $1000 up to $1000 lets say! If you invest in 50 coins, you may be lucky and find one or two that will make huge gain! But if you invest only 2% of you capital in that big gainer, you are not going to make anything! Only losers will ivnest in as many as possible coins because they are not willing to put the work and find their 5 or 10 coins but they will follow the crowd and buy every coin that is suggested by "experts". Put the hard work, find 5-10 coins, invest and wait for return!
If you have $10 millions, you may think of diversification but if you are investing $1000 and thinking of diversifying your portfolio, you are nothing but not ready to be successful investor/trader!
So, the answer to the mentioned question is unknown but what is known is that we are close to the bottom in long-term view and everybody HAS to prepare portfolio for upcoming green days, weeks and months!
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