‘Rich Dad’ Robert Kiyosaki: Do These 9 Things When Bitcoin Prices Are Down

Cryptocurrency has become a hot buzzword that we’ve all heard of. The concept of cryptocurrency is still relatively new and many people are still trying to understand what it is and how it works.

Read More: Robert Kiyosaki Predicts $10 Million Bitcoin — Here’s Why

Find Out: 5 Subtly Genius Things All Wealthy People Do With Their Money

Investopedia defined cryptocurrency as “a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.” Most cryptocurrencies exist on decentralized networks using blockchain technology, which involves a distributed ledger enforced by a disparate network of computers. One of the first and most notorious cryptocurrencies is Bitcoin (BTC).

CoinDesk indicated that as of July 17, 1 BTC traded at approximately $64,818.48 per coin. To put this into perspective, 1 BTC was trading at approximately $42,000 per coin as of February 1, 2024. That’s a 54% increase in just five and a half months. However, while these gains are impressive, BTC has experienced massive drops in value, too. Just 10 months ago — in September 2023 — 1 BTC was trading for as low as $20,000 per coin.

With all this Bitcoin volatility, financial expert Robert Kiyosaki said there are several ways to stay up when Bitcoin prices are down.

Learn This: Dave Ramsey’s Best Passive Income Ideas for 2024 — 15 ‘Steady, Profitable’ Ways To Build Wealth Fast

Wealthy people know the best money secrets. Learn how to copy them.

9 Ways To Get Ahead When Bitcoin Prices Are Lower

Here are nine things you should do when Bitcoin prices are down, according to Robert Kiyosaki:

1. Stay Up to Date on Crypto Trends and News

Staying informed on the latest cryptocurrency trends and news can certainly help you get ahead when it comes to crypto investments. Not all cryptocurrencies are worth investing in, and many coins can be a riskier investment than others. Be sure to do your research and use discretion before investing, especially when crypto prices are down.

2. Stay Focused on Long-Term Financial Goals

Hitting your long-term financial goals should be a priority. Cryptocurrency volatility can have a significant impact on your portfolio when market swings occur. A serious drop in crypto value can slash your assets and potentially jeopardize reaching your long-term financial goals. Carefully review your long-term financial goals before buying more Bitcoin when prices are low.

3. Set Clearly Defined Milestones

Be sure to set clearly defined financial milestones before sinking your money into cryptocurrency. For example, maybe you’re saving for a down payment on your first home or you need to buy a new car. While crypto prices can soar, they can also come crashing down. Saving for these goals might warrant other forms of saving and investing that are less volatile, like parking your money in a high-yield savings account or investing in low-risk mutual funds.

Story continues

4. Diversify Your Investments

Diversification is key to shielding your money from volatile market swings, often associated with cryptocurrency. It’s advisable to have a healthy mix of cash emergency savings, stocks, bonds, ETFs, and mutual funds to mitigate your risk and ensure long-term financial growth. Once you’ve achieved a healthy mix, then you might consider buying some Bitcoin.

5. Practice Discipline and Patience

While crypto market swings can be frustrating, it’s crucial to exercise discipline and patience when investing in any type of cryptocurrency. If the price of a coin drops significantly, it can be tempting to sell it to cut your losses. However, being patient and holding for the long term can result in improved returns over time. Be careful not to be too emotional or impulsive when investing.

6. Practice Dollar-Cost-Averaging

It might seem smart to buy stocks only when prices drop, instead of buying them when prices are up. However, this strategy typically doesn’t yield the best results. Consider dollar-cost averaging instead: consistently investing in stocks at regular intervals, regardless of the price. This practice usually yields better returns over time.

7. Improve Your Mental Well-Being

Investing is very important to improve your financial standing. However, your mental well-being is arguably more important. When Bitcoin prices are down, take time to center yourself and focus on relaxation. This can mean taking a hike, enjoying the great outdoors, engaging in meditation, or watching a funny movie — whatever activity brings you comfort.

8. Build a Financial Safety Net

Before investing in Bitcoin, be sure to build a financial safety net first. As a general rule of thumb, you’ll want to save 6-9 months’ worth of living expenses in a high-yield savings account (more if you can). Ensuring you have cash reserves can protect you from life’s surprises, like a huge medical bill or a necessary car repair. It’s safer to buy crypto once you already have a sufficient financial safety net.

9. Create a Mindset of Resiliency

Partake in activities that promote resilience. These can range from journaling, self-reflection, therapy, or exercising. Your mindset guides your investment decisions which can determine whether you reach your long-term financial goals and dictate how you react to market swings. So, building a more resilient self is key to making more sound investment decisions, which is especially important when investing in Bitcoin and other crypto.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: ‘Rich Dad’ Robert Kiyosaki: Do These 9 Things When Bitcoin Prices Are Down