How to Buy in the Cryptocurrency Market

Adopting a monthly or quarterly buying strategy, this method was once revered, and the extreme strategy is to strive to never sell, continuously buying Bitcoin, hoping that Bitcoin will rise to "100 million" in the future (the viewpoint of the Coin Hoarding School's Nine Gods).

However, based on my experience, amid the significant volatility in the cryptocurrency market, there is a relatively obvious cyclicality, so dollar-cost averaging may be more suitable for bear markets rather than bull markets.

If we adopt a continuous buying strategy, we can see from the trends below that over a period of several years, unless you start dollar-cost averaging at the lower point of a bear market, you are likely in a state of loss today, which is not ideal. This is because, as we discussed in the introduction, one of the biggest characteristics of the cryptocurrency market is high volatility.

Therefore, I recommend that everyone starts investing at the recognized beginning of a bear market; whether to dollar-cost average or buy heavily during a significant drop can depend on personal preference. In a recognized bull market, not only should you avoid dollar-cost averaging, but I also suggest selling. Think about why this definition exists; in reality, it is a required course for "smart investors". We do not need to determine when a bear market has bottomed or when a bull market has peaked; we just need to know when to buy and when to sell roughly.

Note: Buying or selling does not mean going all in or liquidating completely!