Sunday, 5 December 2021

Panic? I'm already down around 30k in less than a week.

DISCLAIMER: This is a throwaway and I don't check DMs or pay attention to anything on this account. Don't try to scam me, it won't work.

Here's a reason you shouldn't panic.

Prior to this week, my wealth allocation was around 40% crypto (mostly BTC) and 60% stock market. Then, on November 29th and November 30th, I wanted to rebalance my allocations to 75% (mostly BTC) and 25% stocks, so this is very close to "going all-in" at around 60k per BTC. I moved a total of $70k USD from stocks to crypto between those two days. Fast forward to today, my crypto holdings are down 28k USD.

How does it feel? Fine. I haven't sold, and therefore I haven't lost. Will I sell? Not a chance, even if BTC drops to 8k per coin.

How do I recover? By DCA'ing. Each time I will deposit more fiat into crypto, I will be lowering my average cost per share. Then when Bitcoin inevitably reaches a new ATH, my gains will be even higher than if ATH happened today.

Moral of the story? There's no reason to panic unless you sell.

submitted by /u/ThrowMeABone38
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