Bitcoin crashed over 50% from its all-time high. And it took the whole crypto market with it.
These kinds of drawdowns are always painful. However, those that have experience in the bitcoin and crypto market understand that you don’t get the right to enjoy hundreds of percent of appreciation without stomaching lots of pain along the way.
I thought I would share a few quotes from investing legends that may help you elevate the pain and view the volatility.
Here are a few of my favorites:
1. “Buy when there’s blood in the streets, even if the blood is your own.”
Mayer Amschel Rothschild
2. “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”
3. I’ve always said the key organ here isn’t the brain. It’s the stomach. When things start to decline – there are bad headlines in the papers and on television – will you have the stomach for the market volatility and the broad-based pessimism that tends to come with it?
4. “Volatility gets you in the gut. There’s no question that when prices are jumping around, you feel different from when they’re stable.”
5. “The first rule of investment is ‘buy low and sell high,’ but many people fear to buy low because of the fear of the stock dropping even lower. Then you may ask: ‘When is the time to buy low?’ The answer is: When there is maximum pessimism.”
Sir John Templeton
6. “When an investor focuses on short-term investments, he or she is observing the variability of the portfolio, not the returns – in short, being fooled by randomness.”
Nassim Nicholas Taleb
7. “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.”
8. “If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”
9. “Invest for the long haul. Don’t get too greedy and don’t get too scared.”
Shelby MC Davis
10. “Your success in investing will depend in part on your character and guts and in part on your ability to realize, at the height of ebullience and the depth of despair alike, that this too, shall pass.”
11. “The intelligent investor is a realist who sells to optimists and buys from pessimists.”
12. “If you can not control your emotions, you can not control your money.”
To sum up, write the quotes down on any piece of paper and drill them into your retina.
There’s no better way than to learn from the best.
For further insights on the recent market volatility, please read my article on how to deal with Bitcoin crashes.