Brief Summary
This video discusses a strategy for managing XRP investments, particularly when the investment is underwater. The speaker shares their personal experience with dollar-cost averaging (DCA) using Cardano as an example, and how they apply this strategy to their current crypto portfolio. The key takeaways include:
- Overcoming the emotional aspect of trading and investing.
- Using dollar-cost averaging to reduce the average purchase price.
- Focusing on assets with long-term potential.
- Protecting the downside by securing initial investment and using stop-losses.
Introduction
The speaker addresses viewers who may be experiencing losses on their XRP investments, particularly those who bought in December or January. They aim to provide insight based on their own experiences in the market since 2017, emphasising that this is not financial advice but rather a reflection of their personal strategy. The speaker also mentions their use of BYDI, where they can trade XRP and receive profits in XRP, and highlights a trade and earn opportunity with up to $10,000 in XRP available through their affiliate link, subject to terms and conditions.
XRP Price Analysis and Personal Experience
The speaker looks at the XRP price chart, noting that some investors may have bought XRP at prices such as $2.92 or $3.40. They recall their own experience with Cardano, where they bought at a high price and saw it drop significantly. The speaker stresses the importance of not dwelling on losses and shares how they changed their strategy after initially feeling discouraged.
Overcoming Emotional Investing
The speaker emphasises the importance of overcoming the emotional aspect of investing and trading. They share their personal journey of learning to avoid self-blame after losses, provided they followed a well-defined strategy. This strategy was developed after a period of inactivity and reflection following their initial losses with Cardano.
Dollar-Cost Averaging Strategy
The speaker explains their dollar-cost averaging (DCA) strategy, using their experience with Cardano as an example. They bought more Cardano after a significant price drop, which eventually led to substantial gains. The speaker simplifies the concept of making money in the crypto space, suggesting that DCA can be effective when investing in assets with long-term potential.
Applying DCA to XRP
The speaker applies the DCA strategy to XRP, suggesting that if they had bought XRP at $3.40, they would continue to buy more. They focus on assets they believe will increase in value over the long term, such as Solana, Ethereum, XRP, Suie, and Bitcoin. The speaker highlights the importance of having supplementary income, no credit card debt, and an emergency fund before engaging in risky speculation. They advise against using a finite amount of money for speculation that could go to zero.
Averaging Down and Securing Profits
The speaker illustrates how buying more XRP at lower prices averages down the overall purchase price. They explain that when the price eventually moves up, the investor is in profit sooner than if they had just held their initial investment. The speaker also discusses strategies for securing profits, such as taking out the initial investment or using stop-losses. They monitor Google Trends for signs of euphoria, which may indicate a good time to take profits.
Final Thoughts and Disclaimer
The speaker summarises their strategy: using dollar-cost averaging with supplementary income and removing emotion from trading. They reiterate that they are often wrong and that their strategy may not work for everyone. The speaker discloses their affiliate link to BYDI, where viewers can buy XRP, but reminds them to understand the risks involved. They conclude by expressing their excitement about the crypto market and hoping that their insights were helpful.
