Volatility, risk and buying over time

Crypto routinely moves five to ten percent in a day and has repeatedly fallen seventy percent or more from a peak. That is not a malfunction, it is the normal behaviour of the asset class. Any plan that only works if prices keep rising is not a plan.

Only commit money you can leave alone. If you would need it back in three months, it does not belong here.

Size positions so a bad week is boring. If a price drop keeps you awake, the position is too big.

Avoid leverage while learning. Borrowed money turns an ordinary dip into a closed account.

Write down why you bought. It is the only defence against panic selling and against holding a mistake forever.

Nobody reliably picks the bottom. Buying a fixed amount at a fixed interval, monthly for example, spreads your entry across high and low prices and takes the timing decision out of your hands. It is the least exciting strategy in crypto and it has quietly beaten most active beginners.

The discipline is the point. The same amount, the same day of the month, whether the news is good or terrible, for a period you decided in advance.