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On this week’s episode of “Bitcoin Bottom Line,” hosts CJ Wilson and Josh Olszewicz discuss how to survive in choppy markets. There is a lot of volatility in the Bitcoin space right now which could be unsettling for new users. Wilson explains, “If your first bitcoin purchase was $45,000 or more and you’re looking at a price of $18,000, that doesn’t look good in your wallet. For those of us who bought when the price was $3,000, we’re still comfortable knowing the price is above that because we know downside volatility is rewarded with upside all-time highs.”
Wilson and Olszewicz discuss the difficulty of turning a profit. Olszewicz states, “The volume of any cryptocurrency has dropped significantly, and the number of people publicly trading it is a very small percentage. People aren’t trading like they used to, unless they have a different focus than just going long.” The long term only strategy only works if you make a profit and buy back at a lower price. The problem is, in a market like this, you don’t know where the bottom is. Wilson cautions that you shouldn’t invest in just one place. He says, “Right now, the winning strategy is not to lose.”
Wilson and Olszewicz moved on to discuss blue chip stocks and the stock market. Wilson believes that chasing returns in cryptocurrency is the most dangerous mindset to have right now. “I feel better about holding dividend-paying stocks.” Wilson believes blue-chip stocks are fine to keep in your broad retirement portfolio, but you need a mitigation strategy. The most important thing is to understand your total risk profile and your thesis about what is going on.
Olszewicz closes the episode by telling bitcoin users that they need to decide what they’re here for. “You have to decide your time horizons, why you’re here, what you’re here for, what your goals are, and whether you can sleep at night.”