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Dogsoldier:
The troubles in Kazakhstan saw the price of Bitcoin dip a fair bit.
I wasn’t aware that the country and the US are where most bitcoin mining happens.

I took the opportunity to throw a few quid in.

A week or so later it’s on the up again.

Ethereum also seems a good prospect.

andrewfi:
Yeah, I've continued buying into the dip with regular purchases and have a lump sum that'll be going in when I check the numbers. Looks like today is the day for that.

When prices are going up I tend to check prices too often. When they go down I pull back to reduce the temptation to do a fear sell. I just track the headlines from a few analysts and commentators. Those have turned round since yesterday. ;)

I also have Ether and a few others. I think that Ether will likely see bigger increases in percentage terms than Bitcoin but I tend to think of the portfolio value in terms of Bitcoin.

Dogsoldier:

--- Quote from: andrewfi on January 13, 2022, 08:32:37 AM ---Yeah, I've continued buying into the dip with regular purchases and have a lump sum that'll be going in when I check the numbers. Looks like today is the day for that.

When prices are going up I tend to check prices too often. When they go down I pull back to reduce the temptation to do a fear sell. I just track the headlines from a few analysts and commentators. Those have turned round since yesterday. ;)

I also have Ether and a few others. I think that Ether will likely see bigger increases in percentage terms than Bitcoin but I tend to think of the portfolio value in terms of Bitcoin.

--- End quote ---
You should have bought a few days ago. It’s on the up now, although in the last half hour it’s dipped a bit.

Long term, Ether does look quite attractive. I might spread my buys between the two.
Expecting a nice refund from the taxman so that will be a tidy little sum to bung in.

andrewfi:
I don't worry about buying the cheapest - or selling at the top very much.
I'm more interested in not overpaying in a downward market (apart from my regular purchases, often called dollar cost averaging). It's worked out pretty well for me over the past five years. :)

It's fun and exhilarating to watch the upward trends, but by turning off I avoid the stresses that can go along with a falling market. So, I sacrifice, possibly, a little bit of profit in exchange for peace of mind.

andrewfi:
I just checked. We're looking at about 1% on Bitcoin, excluding a dip that lasted a matter of minutes - if I were to pull the trigger as I write this. On my portfolio, it is even less.
We're up, on Bitcoin, over the past 7 days by 0.5%. It's nothing. Portfolio wise, I am even on the month, the week and the day, so I am down on the portfolio through DCA, in real terms, by almost exactly what I put in during the period. Again, that's nothing.

Having looked at the numbers, I am going to hold my fire, but keep my eyes open.
It works, I have doubled my portfolio value over the past 12 months while Bitcoin, at the moment, is only up 16% on the year - and no, it isn't just purchases that made the difference. :)

I have written a little about what I have been doing over the past 12 months. It's arbitrage. I keep an idea of the value of coins against each other, which is why I look at my portfolio in Bitcoin rather than dollar, pound or euro terms. I move value from one coin to another to capture profit when coins move against each other. For example I bought a load of Shiba Inu. More than doubled the value, sold, and put it into Ether. Then, when the market started falling I moved much of my Ether back into Bitcoin. I did the same with some other coins. One can make money in a falling or rising market but it is definitely easier into a rising market. :)

Never worry about trying to time the market. You can't! That's where most traders end up losing. Watching trends even over just a few days is where it's at. Capture profit, take the profit and return to the long term base(s). There's folks have done much better than I. On the other hand, I have had a year when all my new toys and some of my travel has been paid for from Crypto profits and still given me a very happy return.

Some people might say, 'why didn't you sell at the top'? I am long term. Had I liquidated I might have had a nice profit. I'd also have a big tax liability. The returns I see give me a return that enables security, peace of mind, living standard benefits and even reduces my tax bill. The tax thing is, of course, different under different tax regimes.

Dogsoldier, when you get your tax refund, don't hang about. Put it into your favoured crypto. Statistiically, investing lump sums when you get them gives better returns over time than trying to time markets and also better than DCA - so don't do DCA out of a lump sum.
I can't recall the differences, and they were taken from stock markets, but the ranking for returns is as follows:
1) Lump sum investment
2) DCA
3) Timing the market

It may seem counterintuitive, and to be fair, they were looking at regular lump sums on an annual basis, so its kinda like DCA on steroids. Basically, don't hold on to the money!

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