While traditional markets close for weekends and holidays; crypto markets run 24/7. This can make it difficult to step away from it all. I’m going to tell you the story of how I spent Christmas in 2020. Bitcoin had just broken the 2017 highs, and the chart looked like it wanted more.
To me, Christmas is a time to spend with loved ones. Parties with friends, dinner with the in- laws...But if you’re in crypto, you may be one of many glued to your screens instead , staring at your wallet balance. If that makes you happy, be my guest! However, I’m advocating for a little time off and away from your portfolio this holiday season. Let’s get into how that could look!
It was nearing Christmas in 2020, crypto was just starting to become popular again, and things were looking good. Knowing the market, however, things can always turn around quickly. Especially back then, there was a lot of disbelief going around about the role that crypto would play in the future. However, I was not about to let crypto dominate my holidays. This is a personal decision; you are free to take a different approach!
I wanted to be sure I could sit at the Christmas dinner table without having the constant urge to check my portfolio. To do this, I needed my portfolio to hold relatively safe assets. In my experience, the more volatile your exposure is, the bigger the urge to monitor your balance will be.
I didn’t want to settle into stablecoins, but Bitcoin “already pumped.” At the same time, Ethereum was in an interesting spot relative to Bitcoin.
I ended up moving most of my holdings into Ethereum just a few days before Christmas, because I was convinced Ether would play “catch-up.” My original idea was to stay in ETH until the new year — but given how ETH performed in the week leading up Dec. 31, I decided to hold on a little longer. This played out well, but still put me on edge. In the end, I took on extra risk rather than reduce it.
| Not the intended course of action, Jelle!
Right — so how do we position ourselves this year? The possibilities are seemingly endless. I’ve seen people go into stablecoins and yield farm, I’ve seen people move back to BTC, and perhaps the most popular move of all: don’t do a thing.
This is what I will be doing as well. These days, most of my positioning is based on long-term ideas. This means that whatever happens during the holidays, it’s unlikely to influence my theses. This allows me to take time off whenever I want. Weekends, holidays or even random days in the middle of the year. Taking the long-term view has been a very comfortable approach to trading. I still take the occasional shorter-term trade, but it’s no longer the norm.
I’m not telling you to quit trading and become an investor at the blink of an eye, but most of you deserve some time off. Browse the charts, find some good positioning for the next weeks, and take a step back.
Enjoy the time off, buy some gifts and prepare for that dreaded talk at the Christmas table:
“Hey, aren’t you doing the bit coin thing?”
I think we have all been asked this question at least once. Considering the state of the market, I expect most of us will hear the question again: our uncles in particular seem to be very interested in buying the dip. The worst part is, they tend to keep asking questions until you answer them.
While I am a strong advocate for trying to help your family, crypto is risky business. Unless your hypothetical uncle is a seasoned market participant, I don’t recommend shilling him your bags. These people are your family, and money tends to cause problems. You may think that they won’t hold their losses against you, but the reality is that first-time losers always look for someone to blame. That someone will most likely be you.
Instead, I’d try to shift the conversation to what makes you passionate about crypto. Talk about the process you had to go through before you had the slightest of a clue about what you were doing. If they’re still interested after that, I point them to some resources to start learning — like CoinMarketCap Academy
If your loved ones are going to enter this crazy rollercoaster market, at least help them learn to swim before throwing them in the deep end. If you do opt to discuss investment decisions, I’d focus on your reasoning for the trades rather than the targets.
Talking about crypto is fun, and teaching is too. Just don’t fall into the “responsibility for others” trap. It isn’t nice. And to be fair, it might be good to talk about something else than crypto for a change.
Crypto for Christmas?
I can’t tell you exactly how to position yourself for any holiday. We all know how unpredictable the markets are. However, you owe it to yourself to at the very least put down the trading for a day or two, and just focus on what matters.
Put your funds into “safe bets” for a while, relax. The market will be there when you get back. I promise.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.