How I Decide The Exact Time to Buy Crypto

When should you buy cryptocurrency? At what time? How much should you buy the dip? Should you dollar cost average? Should you just roll it all in? How do you know when and how to buy? Well, in this video I'm going to share with you some tips and tricks, including two major strategies that you can utilize to enter the market. When we have a dip or maybe have some money on the sidelines that you want to invest. Now, Whether you have $100 or $100,000 or $1,000,000 you want to invest, this strategy will correlate across all those different strategies. And I've used both of these. I'm going to share my experiences about.

Now. When the market dips and you have corrections, usually you want to start to pile in and add to your positions to lower the average price. Your goal as an investor is to buy low, sell high, right? Easier said than done. If you are fully allocated to the market, you don't have any more cash on the sidelines. Well, you don't have many options after that really. Your only options are to hodl onto your coins. But if you do have cash on the sidelines, being able to add to your positions can be a big, big advantage to especially when you have corrections or if you're looking at a longer time horizon over time. Some of you may not have any cashless islands as I mentioned, and this can be quite difficult when you have corrections or you know, when you want to add to your positions but can't or you want you see a new coin but you can't because you don't have any cash. What I try and recommend people to do is at least keep some cash on the sidelines to give you some flexibility when opportunities come around that you can execute. One of the biggest mistakes I've seen in the past is when people start to sell down their initial cryptocurrency stack to buy other coins. And that's where you start to chase these different returns. And what ends up happening is you actually sell down majority of those bigger coins. Perfect example is, you know, buying ICOs with your Ethereum or getting into NFTs with Ethereum, for example, or getting into Solana meme coins with your Solana. You look back over a few months in the after the excitement sort of evaporated and you look and you actually notice that you probably sold down a lot of your major blue chip assets like your Ethereum and Solana, and now you've just got a bunch of crap, right? So one thing I like to do is on Your buy side strategy is just allocate a percentage of your Ethereum or a percentage of your Solana or a percentage of your entire portfolio to reallocate to new investments over time. Sometimes you might like to hold some stable coins on an exchange you can utilize or like me, I just like to have some cash in the bank that I can utilize to enter the market. Now, recently, when we've had some dips in the market, these are great buying opportunities. If you do have cash on the sidelines. Now, you're probably wondering, well, how do I buy in? How much should I buy? What should I buy? There's so many questions when it comes to buying the dip. I want to share with you a couple of strategies, right? Number one is dollar cost averaging and the other one is lump sum investing. Lump sum investing is basically when you throw everything in, you try and time the bottom, and dollar cost averaging in is where you like the word is. You're averaging your investments over a period of time. Now, depending on the way you want to look at it, one is probably a little bit more riskier, the other one is a little bit less riskier, right? If we look at the less riskier option, we'll start with dollar cost averaging. This is basically when you split your investments up over a period of time, right? So we'll start with, you know, the timeframe. Let's say you've got $100,000 you want to invest. I like to split this up into three or four chunks, right? Let's say it's four chunks, 25 chunks, and I'm going to probably average that depending on the market conditions, anywhere between two and six weeks, maybe eight weeks, depending, right? If I split those up over that period of time, I'm going to get an average price over that period of time. The hardest thing is when you have a correction or there's an opportunity where you want to buy the dip is that the market is super volatile, especially crypto. So by trying to time the market sometimes by lump sum investing, you might actually miss the bottom. You may be too early and you might go lower and then you don't have any more cash to redeploy. So dollar plus averaging gives you an entry point over time to invest. Now, sometimes when I'm trying to buy the dip or when there's a bigger opportunity, I actually use lump sum investing because I'm just trying to get in the market and take advantage of that opportunity. That's for more of my shorter term plays. But if my longer term strategy is to Just continue to accumulate bitcoin and continue to accumulate my blue chips. I'm just going to continue buying week after week, month after month, regardless of price. So if you've been watching my videos for a little while, you know, you would know my long term strategy is to literally just accumulate as much bitcoin as I can over a long period of time. I am price ign. So when I'm looking at buying bitcoin on a shorter term time frame, I actually don't really care whether it's 50k, 70k, 80k, 67, I don't really care. I'm accumulating that because my perspective is over the next few years, bitcoin is going to be a lot higher than where it is now, hopefully in the hundreds of thousands. So I'm not going to split hairs over where we are right now. That's my long term stack. Now when we had these corrections, I'm seeing a lot of opportunity in the market, whether it be like Ethereum, Solana down, because a lot of these coins have large retracements, right. Even on the way up. Okay. I still think over a long period of time, over the next year, year and a half in this bull market, a lot of the coins at their current prices are undervalued. So if I have some cash that comes from my business, maybe I have some dividends, maybe I have, you know, some leftover money from my salary, maybe I've got some, you know, a side hustle, whatever that might be, where I've got extra cash. I'm always looking to buy assets, right? And the assets I'm buying right now are cryptocurrencies. Back to my strategy and I've done another video on this on my crypto strategy, updated portfolio. You can check that out on my channel. But I've got my barbell strategy, right? On my left hand side of barbell I've got bitcoin and property. I'm trying to accumulate as much of that over the long term as possible. But on the other side I have my altcoin stack and I'm using altcoins to leverage up to push over and buy more bitcoin and property. So with my altcoins, when I see large opportunities and there are a lot of corrections in cryptocurrencies and I've done another video on this around market dynamics, but there is huge pullbacks consistently in crypto there's always opportunities. I like to add my positions harder in those times, right. So I might be buying month after month regardless of market conditions. But when we have opportunistic times, when the market corrects, that's where I really want to add more capital in the market because there's going to be larger opportunities. Right when Ethereum is down to 2500, 2400, 2200, for example, or Solana gets into the low one hundreds, they are great buying opportunities in my opinion. That's when I want to add to my my overall portfolio. Now when you're trying to decide whether or not you should dollar cost average or lump sum, again going back to are you looking to just get in the market and you don't worry about the long term? If you are, well then lump sum investing probably doesn't matter, right? It's probably a good idea. If you just want to get it in and forget about it, go for it. If you're very price sensitive and you really don't want to get in, dollar cost averaging is a much better alternative because then you can average your price out over time. I've used both. They both have their pros and cons. It really depends on your time frame and the assets you want to buy. So when it comes to the assets you want to buy, this comes back to your portfolio allocation and your risk appetite. I was speaking with one of our platinum clients the other day and he had $100,000 that he wanted to invest. He's trying to figure out where he should place that capital. Now for him, he's got a lot more risk in his portfolio in the sense that he's got a lot more cash on the sidelines, he's got properties or other investments. So he's ultimately looking to add risk to his portfolio. So in a correction or a time where there are, say altcoins at a cheaper price, I would be looking to potentially allocate more to your altcoin positions during those times to add risk to your portfolio. Now if he was one of our other platinum clients, it was maybe in their retirement, maybe they're investing in the smsf, whatever it might be. I wouldn't be looking at altcoins at all. I'd be looking at more of the blue chips getting advantage of Bitcoin, Ethereum and things like that to add to your overall portfolio. But the best thing for you to if you're trying to figure out what coins to buy and when to buy them, really look at your overall portfolio position. If you don't have a spreadsheet, write down all your coins, have the percentage allocation. If you're a collectorshift member, we've got an amazing tool inside the platform where we've got your own dashboard. Plug in your assets and you get that pie chart that shows up. Ultimately what you're trying to do is, what I do is I have my current portfolio allocation and I have my future portfolio allocation that I'm trying to get to. And basically what we're trying to do when we add capital in the market is move from what we have now to where we want to get to now. How do you figure out where you want to get to? Well, that ultimately comes down to your goals, right? How much money you were trying to achieve this cycle? Are you trying to achieve wealth in crypto beyond this cycle? How much risk do you have? And with this information, it basically allows us to come up with an asset allocation. It gives us an indication of where we need to get to. So for me, somewhere between 1 and 5% per altcoin is somewhere where I want to sit. I'm a little bit higher on a couple of different assets I have in my portfolio just because of the returns they've created. Now you can rebalance that. But ultimately if you are have, if you have high conviction in something, maybe you go beyond the 5% for those altcoins. For me, Bitcoin and Ethereum should hold up a large percentage of your portfolio that's going to help you in any drawdowns and just long term, two assets that I'm most bullish in and then, you know, Solana and down. So, so let's say you have 1% in an altcoin right now and you're trying to increase your exposure, right? And you say, well, how much should I buy of this coin? Right. By looking at your future portfolio allocation and where you want to get to, you can figure out how much capital you need to add to get from 1% allocation to 4 or 5%, for example. And that's your number and that's where you can go and target and start to buy. One of the biggest problems I see a lot of people make when they come to me and go how much should I buy? When should I buy it? Is they, they're just using, you know, their nominal figures that their dollar value figures in their head of how much should they buy when what it should be is what do I need to buy to get my portfolio to a point where it's allocated appropriately. That's the question you should be asking because once you've got that Altcoin A at, let's say that 4 or 5% mark, then you can focus on the next coin, right? Maybe you've got 0.5% in another coin, or maybe you've got 15 coins at 0.25% and you want to consolidate those coins, which I've done in the past and I talk about this a lot, consolidating altcoins to get to a larger position of those coins. So that way, in a bull market, rather than going from a 0.25% allocation or a 0.05 allocation, when you've got something very small, let's say that 5 or 10 x's that's still very small in contrast to the rest of your portfolio. But if you now have 10 coins at, let's say 2% or 2.5% or 3%, now if those coins 5 or 10x, that's going to mean a lot more to your portfolio returns during a bull market. And I've been through this, I've done this a number of times where I've consolidated, rebuilt the portfolio and then moved higher conviction into the bull market. And that's been a massively positive experience for the returns in my portfolio. So I recommend doing that. Sit down, look at your current existing portfolio allocation, look at where you want to get to, what are your time frames, and that will help you decide whether you or not you want a dollar cost average or you just want a lump sum and get it in. Now that you're ready to buy, you're probably wondering, where should I buy these coins? How do I buy them? And if you are a large investor like myself and you're wanting to invest more than $50,000 at a time, maybe a hundred thousand, maybe a quarter of a million, maybe you want to throw in half a million, right? Where do you do that? Well, for starters, I would not recommend doing this on a spot exchange. A spot exchange is like your coinbase, your coin spot, you know, binance. These exchanges charge a spread and a fee to execute those trades. Now they are great and very easy to use. It's not that I don't recommend them, I just don't recommend them for using large amounts of capital to buy crypto because you can get chewed up in fees a lot. Now what a lot of these exchanges offer is what's called OTC or over the counter trading. This is basically when the exchange can take your money and go do a manual trade with someone on their order book and take a far less fee and a far less spread with your transaction. And for some exchanges, you may be paying up to 3% spreads to plus a fee for your transactions. If you're buying $100,000 of crypto, that could cost you up to 3 or $4,000 per transaction on an exchange. So I always use OTC when I'm exchanging large amounts of crypto or using a market order on those exchanges. Some of these exchanges offer market orders. That's where you can get down to 0.1% or 0.01%. So OTC is where I'd like to go. Same when I go to sell crypto. When you're selling large assets in the hundreds of thousands, you really want to try and use OTC because it's going to get you the best spreads and fees. And you can contact most of your exchanges and they should have an OTC desk. You know, a lot of the major ones do, but it's definitely something to look into. Get that set up prepared ahead of time as well. One of the things I see a lot of our clients do, and this is why we see a lot of success, is that we're getting prepared ahead of time. The worst thing you want to be doing is having a million dollar portfolio or a $3 million portfolio at the top of the cycle, not knowing when to sell, how to sell, where are you going to send it, it's sitting on your ledger. Then you're trying to send it across to an exchange and the height of a bull market and gas fees are high and it's taking a day to arrive and you're sweaty palms and you make a mistake. You don't want to be doing any of this right. You do not want to be reactive in a bull market. A lot of you probably round trip previous cycles because you weren't prepared. You need to get prepared ahead of time. You need to have the game plan, you need to be ahead of time to get ready so you know exactly what to do at the time you need to execute. You've already got it set up, You've already got your OTC set up. You've already got your assets at a place where you're ready to execute. You already know when to execute that sale order. You know when you're going back into cash and the sales strategy comes back down to again. Are you lump sum selling or your dollar cost averaging selling? And I've done a video on sell strategy which you can check out on my channel, which I'll talk about later. But ultimately you really want to be utilizing these larger platforms for otc. If you are trading larger amounts of crypto, if you're not, if you're a smaller investor, that's absolutely okay. You can still use the spot exchanges, they are fine. Just make sure if you can use the market order feature, it's just going to save you a lot of fees and spreads. Now for some of the coins you're looking to buy, you're probably not sure where to buy them or what exchange or platform you should. The best and easiest tool is to go to something like CoinMarketCap or CoinGecko and go to the asset. And once you go to the asset page you can scroll down, you can see where you can actually buy these coins. A great resource, a free resource over on Collective Shift, which is how to identify where to buy cryptocurrencies. You can check that out. I'll put the link in the description below. But you can go to one of these sites and they're going to give you an indication of where to buy. Usually if I can, we'll try and buy, you know, my altcoins on something like a decentralized exchange like Uniswap. It's going to give me better spreads and better fees and I can move it straight to my cold wallet storage. Some assets are not available on the decentralized exchanges. Most are, but if you're on a centralized exchange and they don't offer those assets, you will need to go to a decentralized exchange. So if you're looking for some of the lower cap coins, a lot of these aren't available on the major exchanges. If you are on a major exchange though, again you can look at on CoinGecko, CoinMarketCap and see where they're listed. You may need to sign up to a new exchange and this is really comes back to you know your preference on where you want to buy and sell your cryptocurrencies. You know most of them in Australia have pretty good selection. You know Binance is probably the best in terms of asset selection. But always I would recommend once you buy, move them across to a cold wallet, move them across the storage so you can hold those securely and you're not keeping them on a crypto exchange. So there are your two options really when getting into the market, dollar cost averaging or lump sum investing. And make sure to use those OTC features. Make sure you your current portfolio, your future portfolio allocations, figure out your risk appetite, figure out your goals and everything's gonna be a lot easier. If you need any help, we do help you one on one. You can jump into the description below and we've got some calls there. You can book with one of our team. It will guide you through the process so you are prepared for this bull market. But outside of that, thank you so much for watching. I hope you enjoyed the video. Please leave me a subscribe if you enjoyed it and I'll see you on the next video.