How Digital Land Investing in Decentraland can Protect you from Heavy Bitcoin Downswings.
Posted On September 9, 2018
In this post I wanted to talk about how investing in Decentraland land can protect your invest portfolio against Bitcoin swings.
It’s always a good idea to diversify your Investment Portfolio.
There has been too many instances where I have gone all-in and my investment has seen a big drop because what I invested in went down heavily.
If I had just Diversified into other coins and investment options I would have increased my investment slowly but steadily.
This is one of the reasons I invest in Decentraland land. As investors we need to be very careful investing in the crypto market, mainly because Bitcoin is such a volatile investment and if Bitcoin goes down even a few percent than it drags down the whole Crypto market including all alt coins.
Even if you have invested in really good coins with great technology, a lot of hype and promise you will still see a drop in your investment as Bitcoin goes down.
The opposite is also true, as Bitcoin goes up just a few percent then all coins also go up a lot more than just a few percent.
I have found investing in decentraland land protects me from these crazy swings, especially when Bitcoin goes down and brings the price of MANA down with it.
What I have found and seen very clearly in the last seven to nine months of following land sales in decentraland is that as Mana goes down, there is much more sales activity occurring in decentraland as people are willing to spend more Mana to acquire the lands they want because they can spend less fiat to do so.
For example, a month or so ago, when MANA was worth $0.15, the cheapest land you could buy was 6,000 MANA = $900USD. There would have been people on the side lines wanting to invest but thinking, “$1,000USD for a digital piece of land!, no way!”
But now, with MANA being worth $0.06, and the cheapest Land being 7,300 MANA, they can invest with less than $500 USD. Way more appealing right? Even when the cheapest land is more MANA!
In fact, if they were happy to spend $1,000USD on a digital land when MANA was worth $0.15, they can now afford 15,000 MANA lands as opposed to just 6,000 MANA lands.
They may end up buying 2 or 3 lands!
This gets people buying more lands, removing supply from the marketplace which increases the price relative to MANA.
So my 20-30 lands that would have sold for 5-6,000 MANA each, can now sell for 7-8,000 MANA each. Much better then just hodling coins right?
This is a printscreen of decentrastats.
You can see 20+ lands selling almost daly for the last 7 days! That’s quite a lot and it’s heavily connected to MANA being a lot cheaper than it was a month ago.
Sometimes when Mana increases that might signal other investors to fomo in and buy land as decentraland seems to be doing really well.
What I have found is whether Mana goes down or up if you have invested in land and bought it at a good price you should see an overall steady increase in your investment regardless of how Bitcoin performs and that’s key for at least some part of your investment.
I don’t mind being very risky with some pot of my investments but there are other parts I like to secure by implementing strategies that are available these days especially with crypto Collectibles which is why I have dedicated so much time learning and trading and overall increasing my portfolio as opposed to just buying alt coins and being at the mercy of Bitcoin.