Bitcoin is now 50% cheaper compared to its price one month ago and altcoins are 80% - 100% cheaper. People are selling their cryptos out of panic and fear as indicated by the high 24 hour volume ($18 billion for bitcoin and $57 billion for all cryptos).
Now is a good time to buy but keep the following in mind:
Chasing the bottom is a fool's gold
Many people are glued to your computers or phones waiting for that "perfect" moment to buy at the bottom only to be disappointed or even lose money (I had my fair share of both of these). It's not worth the time and money. A better approach is to buy in chunks. Say if you have $1,000 to invest, divide it into 4 chunks. Projecting that your target crypto e.g. bitcoin is expected to drop between $10,000 and $5,000, you should considering buying $250 worth of bitcoin @$10,000, another $250 @ 9,500, still another 250 @9,000 etc. depending on how the market reacts. Consider setting a 30min to 12 hour interval for each chunk to spreadout the losses and also to have sufficient window to see the trend. And if you bought when the price is already increasing (rather than decreasing), don't feel bad. That's just the nature of the beast.
You should have a list of those cryptos that you already researched
Researching altcoins during "lull" times (when not so much activities are happening in the crypto world) is how you should spend your "non-trading" time (other than Steeming of course). To make the most short-term profit, use your list to identify coins that depreciates the most relative to bitcoin. When bitcoin lose 10% of its value, altcoins typically lose double than that which means that when bitcoin recovers, the altcoin recover a higher percentage of its price.
On the flip side and as a rule of thumb, coins that depreciate the least relative to bitcoin are strong contenders for long- term investment. Ethereum and EOS for example proved to be resilient to bitcoin volatility over the past 4 weeks.
The tricky part is, most of the altcoins can only be bought using BTC instead of USD. So if you parked your money in fiat, buying altcoins could be cumbersome. There is where practice would come handy. Constant practice with your favorite exchange(s) on the most efficient way to convert one from crypto into another will help a lot during this time of bargain hunting. Poloniex and Binance for example have completely different format. Unless you are very familiar with using them, you could miss a good buying opportunity.
Arbitrage
You probably noticed the different prices of coins in different exchanges. There is a huge profit potential in this varying prices that you can take advantage of and if you play it right - courtesy of a young and unregulated market.
Time to build that cross-border A-team of crypto "vampire" traders if you know what I mean :-)
New coins are potential source of bonanza
I could hardly find a coin that did not increase in value since its inception. Within a few weeks (or even days), doomsayers and short sellers will run out of steam and bitcoin will once again commence its ascent to a new high bringing all altcoins with it. This could be the perfect time for newly born coins to skyrocket - propelled not only by their "inherent value" but also by the tsunami that bitcoin will create. Naga (NGC) and INS Ecosystem (INS) are examples of these newborns.
Be sure though to set your "exit" strategy for these types of coins as they could be more volatile than their older siblings.
Disclosure: This post does not intend to provide investment nor does it represents that the securities or services discussed are suitable for any investor. Investors are advised not to rely on any information contained in the article in the process of making a fully informed investment decision.
This post was resteemed by @steemvote and received a 26.25% Upvote
You're so nice for commenting on this post. For that, I gave you a vote!
Either HODL or find your preferred coin to diversify .
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Bitfinex has the highest volume and owns Tether!
Tether is not USD!
Many exchanges list USD when in fact they mean they hold USDT!
This will blow up bigger than anyone could ever expect and is why you should avoid any exchanges that trade only in USDT!
Most of the exchanges listed do not have true USD pairing! True price discovery will be rapid and only withdrawal limits are slowing the bleeding!
Your quote about greed and fear concerning the current crypto market is the most cryptic way to advice panic sellers right now. I hope they'll take your advice.
What a time to invest some money
Excelente este es un buen momento para comprar e invertir y seguir el gran consejo de waren Buffett
Yeah get in while you can, especially on steem... the price is going to surge and then it will be quite difficult to make money without an investment into the platform for those who are late to the party
good point. Steem price dropped to as low as 3,300 coins per bitcoin during the drop few minutes ago. bitcoin is preparing for another drop and steem for sure will get cheaper relative to bitcoin.
Yeah Im about to get as much SP as I can because once the price of steem goes and the rate from SBD to steem goes south, SP is going to just be harder to accumulate.. I don't know about you but Im here for the long haul so I want that SP lol
no fear here
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BUY BUY BUY !!! All this red looks good to buy
so good its hard to resist.
Argh I wish I had more to invest right now! Feel like I'm missing an opportunity here.
Informative post thanks for the sharing.
Being a contrarian investor works a lot of the time. As long as you believe in what you are buying then no price is too high!