What’s Your Plan for Bitcoin?

Benjamin Franklin was famously quoted as saying, “If you fail to plan, you are planning to fail!”

The same goes for bitcoin and digital currencies. If you don’t have a plan…

The Act of Planning

One of my clients and I were talking about just this topic recently. For many people, having a plan feels like it “locks” you in. But, I don’t see that at all. I don’t see that as the purpose of a plan either. And, my years in Silicon Valley management back that up.

The sheer act of planning, or preparing and thinking through the options, is the major benefit of the planning process. We all know that things change. Blindly following a plan is not the answer. Yet, going through the steps required to achieve your goals is the key to getting there, even if the path to the goal changes along the way.

You Need a Plan for Bitcoin

Are you going to invest once and hold your bitcoin for the future? Are you going to buy and sell when it doubles in price? Perhaps you want to invest a certain amount every month, or with every paycheck, so you can “dollar cost average” your way to digital wealth?

Whatever your strategy is, my advice is to “have a plan”. Think about what you want to accomplish with bitcoin and other cryptos. Is it financial freedom, protection from the poorly managed banking system, or diversifying your investments? Is it just dabbling in this new, exciting online money? Perhaps you want to get into bitcoin because you see an opportunity and want to speculate with a little of your “Vegas money”. This is a fine strategy, and one that even financial advisors support.

For example, it’s not unusual to allocate 2% to 5% of your overall portfolio to high risk and high reward investments. Digital currencies are perfect for that speculative investment where the rewards and risks are high.

A major way to lower your risks is to educate yourself. Learn how to buy and store your digital wealth safely.

In speaking with many of my clients, they are disillusioned with the 1% or less that they receive from their bank savings. In an age when the true inflation rate is over 4%, they are losing money every day by keeping their money in a traditional bank.

Bitcoin Reaches New Heights

Bitcoin, the digital currency that really started it all in 2009, has reached new heights as of this writing. Its new highs are $2,800 and growing, while the short-term lows are also getting higher and higher. In the trading world, they call these “higher highs” and “higher lows”.

So, where is all this going? No one knows for sure, but with the continued challenges in the global economy, the poor job that central banks are doing with their massive “money printing” strategies, and the continued centralization of the world’s wealth, I believe that bitcoin and many of the other digital currencies have a long life ahead of them.

If you think $2,800 is high for bitcoin, I invite you to look back a year ago when bitcoin was less than $600. If we have seen that kind of growth in less than a year, what can we expect in the year ahead?

In closing, if you want to invest successfully in bitcoin, get educated. Make a place. Decide what you are willing to invest. And, then think about what your “exit strategy” is, that is, when you will sell.

For many people today, their exit strategy includes staying invested until bitcoin goes mainstream. Others say it’s when gold hits $20,000, or silver hits $300. Whatever your strategy is, create a plan. And, write it down, even if it’s just a page or two.

As for my, my plan is to ride the rocket ship higher and higher as well! Most of my students and private clients are very bullish on bitcoin and digital currencies too. Are you ready to jump on board?

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Published by Marc A. Carignan

Marc A. Carignan has traveled the world doing business in over 35 countries. He studies leadership techniques and provides executive coaching and management consulting services. Since 2013, Marc has studied Bitcoin and cryptocurrencies and reported on his findings. He uses his understanding of technology, his coaching techniques and his training experience to make Bitcoin and its impacts understandable to business and personal users.

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