Crypto Investing - Adoption Relativity & Perspective

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12 Jul 2024

Are You Game?
Given the opportunity, many individuals would allocate a modest investment to the Crypto market. However, the level of ignorance amongst the average person, regardless of jurisdiction, or even social standing is quite surprising. Those who have been in this space for years often forget how alien this must appear to the average person who has never made an on-chain transaction or even considered a digital asset.
This is one of the primary reasons hindering new investors from entering the market. However, regarding those who do take the plunge, I have noticed how short-sighted many of these individuals tend to be. Much of this is thanks to the gains realized by memecoin investors and gem hunters within the micro-cap market. These gains are real. However, extremely difficult to come by.
New and “aged” investors don’t realize how difficult it is to extract such large gains from the market. This is the byproduct of copious hours in the trenches… the trenches of research and skill acquisition. You don’t just enter the Crypto market and begin racking up 50X to 100X gains. Furthermore, many new investors remain within the blue chip sector.
The Key
This is a good idea. However, you can’t be exposed to blue chips and then expect the returns of the memecoin market. Blue chips, by definition, are relatively stable with modest returns. Blue chip investors sacrifice enormous gains for the “security” of reserved, yet more stable returns. In my opinion, new investors should allocate no less than 80% to Bitcoin and Ethereum. Once they become more acquainted with the market they can adjust this ratio.
For some investors, slow appreciation is an issue. However, for others with a long-term view, it’s ideal. The latter are convinced regarding the future of blockchain and Crypto in general. For them, it’s a blessing as it creates an extended window. They see it as having more time to accumulate assets while they are relatively inexpensive. The former group, on the other hand, is impatient, and as a result, more prone to error.
The combination of adoption, time, and innovation leads to the appropriate perspective. Viewpoints that exclude these vital points tend to be incredibly short-sighted, and even foolish. The discipline of building positions over time is alien to the former group of investors. They allocate once and then expect a return. However, a farmer tends to his crop daily. It’s not a turnkey, thanks for playing dynamic.
This near-termism needs to come to an end. Investors need to get realistic. Yes, this is the Crypto market. Yes, its returns outperform every other market. However, time is still a crucial ingredient for the maturation of any investment. Those who cannot accept this reality should devote their time to learning the art of swing trading and scalping. In this way, gains are more easily realized.
As attractive as this idea might be to an impatient investor, it’s a two-edged sword. Without the appropriate skillset and experience, your returns could be even less. Furthermore, these trading techniques are usually accompanied by leverage. This is yet another dangerous weapon in the hands of an inexperienced trader.

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Final Thoughts
At the end of the day, the best approach for the average investor is to sit back, dollar-cost average, sell cycle peaks, and then rinse and repeat. It’s a simple low-stress approach. The most difficult aspect of this approach is identifying an acceptable peak. However, even if an investor exits too late, it still trumps HODLing to the bear market bottom. All the best and stay safe! See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.