Missed Out on Bitcoin and Ethereum? Here's What to Buy Now

Missed Out on Bitcoin and Ethereum? Here’s What to Buy Now

If you’ve got a bad case of fear of missing out (FOMO) when it comes to Bitcoin ( CRYPTO:BTC ) and Ethereum ( CRYPTO:ETH ), you’re not alone.

True to form, the cryptocurrency market has been volatile all year, offering investors plenty of chances to buy the dip. But taking advantage of a steep sell-off is easier said than done when prices are crashing all around you with no end in sight.

Now that we’re on an uptrend, folks are kicking themselves for not buying at lower prices. Here are five things you can do right now to ease your crypto FOMO in a calm and collected way. Image source: Getty Images. 1. Determine your ideal cryptocurrency allocation

In his book, The Psychology of Money , Morgan Housel discusses the importance of knowing what game you’re playing. Although we may be buying the same stocks or cryptocurrencies, we all have different investment objectives. Some people want to grow wealth over time, others want to day-trade for a quick buck. Then there’s everyone in between.

Knowing what you want to get out of an investment can help set the tone for a reasonable amount of exposure to cryptocurrency that suits your risk appetite. 2. Decide which cryptocurrencies make the most sense for you

After you’ve determined how much you want to invest, it’s time to figure out which cryptocurrencies are right for you.

For example, risk-averse retirees might benefit from the high interest rates available from stablecoins . Bitcoin serves as a starting point for new investors. Ethereum adds more risk , with more potential upside. And larger altcoins like Cardano or Solana (or smaller altcoins like Polygon or Cosmos ) offer a high risk, high reward option for risk-tolerant investors.

No matter what you buy, understanding what you own and why you own it can help separate an investment from a reckless gamble. 3. Consider buying a small portion now

Whether it’s $10 or $10,000, having skin in the game should instantly help alleviate some crypto FOMO. It’s also a chance to get used to the differences between a crypto exchange and a brokerage account. One of the reasons I bought my first cryptocurrency in May was because I wanted to learn more. Having a stake in something provides an added reason to stay up-to-date with the market and sharpen your understanding of why Bitcoin and Ethereum could be good investments. 4. Dollar-cost average over time

One of the lowest-stress ways to invest in crypto is to simply dollar-cost average into the position over time. The theory is simple: Instead of trying to time the market or wait for a dip, allocating a portion of your income to crypto and automatically buying in stages instead of all at once is a good way to build a position.

Coinbase (NASDAQ: COIN) allows its users to dollar-cost average into any of the dozens of cryptocurrencies offered on its platform. On Coinbase, you can customize the dollar amount and frequency of purchase. For example, you could set up a plan to buy $10 of Bitcoin daily, weekly, on the 1st and 15th of the month, or monthly.

If crypto takes off, you’ll benefit. If crypto plunges, you don’t mind because you can now buy more for the same amount of money. It’s a win/win scenario that helps you sleep at night. 5. Be ready for the next sell-off

So far this year, each sell-off was followed by a rally, the most impressive of which transpired in October. In less than a month, Bitcoin’s price increased by $25,000, representing more than a 50% gain. The cherry on top was a fresh all-time high of nearly $67,000 on Oct. 20.

In the last six months alone, there have been two major drawdowns in the price of Bitcoin and Ethereum. Bitcoin price data by YCharts. From late May to late July, Bitcoin and Ethereum both lost over half their value before rebounding in August. In September, a smaller correction sent Ethereum’s price down 17%, and Bitcoin lost 12% of its value. Bitcoin and Ethereum might be hovering around all-time highs right now, but it’s important to remember that they spent roughly half of the last six months on a downtrend .

This is all to say that both cryptos are subject to a lot of speculation and sudden and sizable moves to the upside and downside. Patience and the courage to buy when prices are crashing have been two qualities that have paid off big time. Instead of throwing a big chunk of […]

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