If you just woke up to see Bitcoin on its knees, all your precious alts posting double digits losses and, overwhelmed by panic, you rushed to the computer to sell, just don't.
Truth is that these compensatory movements are not only common, but absolutely necessary, from time to time. If a trend, especially a growth trend, spirals out of control, it may collapse under its own heat, so to speak. So these frightening, albeit necessary dives, are in fact useful. They cool down the markets and support a healthier, more stable growth.
I confess I've been in that panic place a few times, and I know how it feels. Well, maybe not as much with cryptos, because I did a bit of FOREX trading 5 years ago, and when I started to look into cryptos, 3 years ago, I already had a few bruises on my back. So once I changed the EUR/USD charts with Coinmarketcap, it was much easier for me to understand the movements, because there are significant similarities.
But there are also striking differences.
So, in case you just entered this world, here are a few approaches for when the charts are turning all red, and you can almost hear your tokens hitting the floor hard.
Don't Panic
Especially the first hours or days are very difficult, because it seems like the downtrend will go on forever. It won't. Anything changes so this downturn will end at some point. Try breathing in and out. These works for me every time.
Get Relevant Information
Set up a few trusted information channels relevant to your investments and look into them. And only into them. Don't buy everything that floats on social media. People get scared all the time and it's their right to do so. But that doesn't mean you have to believe them.
Diversify
This is the easiest proactive thing you can do to shelter yourself from these storms. Try to have a balanced portfolio because, most of the time, when one major player is hit hard, value just flows into other assets. Diversification alone will offset a lot of your potential losses. As long as you're doing it consistently, obviously.
Buy Yourself Some Treats
This is probably the hardest thing to do of all, because it requires some buffer money into a different store of value, easily accessible. In this case, in fiat. Keeping a small amount of fiat specifically for these situations will greatly pay out. Like, literally. Buying at a discount always feels good, isn't it?
Market Is Always Right
Even if you lose a lot, remember how you felt when you won. And try not to get too cocky. Just because the market moves in the same direction you though it will, for a few weeks, months or years, you may tend to believe that you're entitled to winning. You're not. Market is always right. Accept losses and move on.
And remember: markets can stay crazy a lot more time than you can stay solvent.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
https://steemit.com/~witnesses
If you're new to Steemit, you may find these articles relevant (that's also part of my witness activity to support new members of the platform):
I just buy more alts and go grab a beer coz I now I did a good trade
I truly agree with this post. I've experienced quite a few Crashes now but I feel cold sweat when things like this happen. Hopefully lots of newbies gets to read this post and save money by not selling at the dip.
I'm really new to cryptocurrency, I don't have much crypto asset aside from STEEMIT and I plan to HOLD for a very long time. The market crashes just means one thing for me and that means cheap STEEM. :)
Over the past couple of months ( and after a few panic selling ) I've learnt to accept that I'm not a good trader and just let the market do what it wants. Keep a few bitUSDs and then scoop some cheap coins. Its not big but its just for the good feeling that I bought them cheap :)
You are a wizard, I would not explained better
Great advice...
Being new to crypto and seeing these spikes and drop seems to be a healthy sign of growth, much like in life. Having much patience and discernment on things really helps a lot, i never felt panicky even seeing the huge drop from 19k to 11k. The market is your playground, don't let it play you. ;)
An awesome article to resteem and to be a constant reminder in these crazy times. :)
You don't even need to stoop to fiat.
@phelimint is a mint in Canada.
(They produced the 1oz silver steem community coin)
They accept steem directly now; so treat yourself to some shiny heavy without touching an exchange.
you're right, for now almost all cryptos are turning down but I did'nt panic coz I kow it can recover soon
@dragosroua I Love the Pullbacks in Crypto, You Know Why ?? Because I can buy what I like at Better Prices........
do not panic = earn more
March 2018
BTC = 40 thousand dollars
Thanks so much for the advice. I actually think this might be a good time to pick up some crypto at better prices.
Will be interesting to see if the Americas markets buy or sell on the pullback this morning.
my hunch is that the price found floor at $13900-$14000. Will probably see $17000 again by the end of the year. All speculation, obviously.
Yes, a possible dump and pump going on!
Hi @dragosroua, This is the article I was looking today. Perfect timing. BTC is having some correction and it's price is down and people are panicked. I think this is the perfect time to buy and hold. Price is definitely going up after holidays. Helpful post. Shared it with my followers. Thanks.
Wow, coinmarketcap looks like someone dropped an atomic bomb - or is re-doing the dotcom crash. Or the 2008 one.
Indeed markets are always right. To this day I still have a lot of difficulty retaining that thought and hold on to losers for too long. Many wounds myself in the financial investments. Crypto is very new to me and these moves to the downside seems hard to digest. Feels like the crypto world is ending and it came out of the blue when two days ago we were at market cap highs. Charlie Lee sold out of LTC and people realizing BTC not very good and transactions with slow confirmations and high fees may have provoke some of this downtread. Who knows?
It's not like it wasn't suggested...
Is BitCoin at the Bottom of The Correction?
This article is a great piece of advice for all. This is for sure the time to HODL. those who sell will be at loss in the long run.
Thank You @dragosroua.
Steem On!
@Resteemed
I feel relax and buy some:)
Thank you for watching a great post. I look forward to seeing more beautiful posts for you
Thank you for watching a great post. I look forward to seeing more beautiful posts for you
Its the first time ever i am not panicked damm experience really teach life lessons
Well I wake up and is going back up. Night as always is s great adviser :)