There are lots of things happening in crypto market in the last 48 hours and that even all at once! I am in short of breath tbh. The market crashed once again! It feels like whenever something good is happening, some sort of bad news is causing the the market to cripple once again. The recent crash of one of the biggest market cap coin and exchange FTX has simply blown away. Which is causing a ripple effect and people are getting afraid and panicking thus the market is reacting. hence the market is on on downtrend once again. Since the market is on downtrend BTC followed the trend and we are back again where the alt's have followed BTC. As a result almost every coin is down!
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So, what happens now?
I am probably not sure what to say! If you are newb and this is your first bear market scenario than you are in for a ride. Reading this post, might not give you the satisfaction that you are seeking at this moment. Well, what I can say for certain is, this is definitely not the end of Crypto! We have been through bear market in the past. We have seen crypto getting slammed against walls and people claiming this is the end of crypto. I am not sure how many documentaries I have seen over the past where people said we are done with so much passion that even myself got confused by their statements. Upon slapping myself few times I got rid of this infatuation. It happens. People often fall prey to buzz and they often follow the crowd. It is in our nature. It can not be restricted :)
Let us observe the situation for a while
Let's talk about HIVE. Hive has also taken a beating in this downtrend and as of now it is floating around 36 ish cents at the market. Let's say you have spend $1000 when the price of HIVE was 50 cents each. So you got 2000 HIVE for spending the amount of $1000. At current market price you should have around $700 approx. So $300 was literally wiped off from your portfolio! I do not know about you but If I was you in my early days of crypto, I would have literally panicked so such extend where I would have probably sold everything at current market price and just sit onto whatever I would have got at this point. As the only thought that would have gotten into my mind would be, the market is going down, what if it goes down even more? I will be left with much more loss.
This feeling of regret is quite common. I do understand how much it is hurting to see the portfolio going red. It is devastating. I am completely aware of such feeling. As like countless others I have also been through those situation and I am aware of how it feels.
What I would do now?
As of this moment, I know on which coins I have invested upon. I definitely did my research and slowly I invested into those coins. Let's say for Hive. I have invested some money in the morning today and I am already at a loss in terms of value of USD. But what I am doing is, I am DCA (Dollar Cost Average) my portfolio. Which is, I am slowly buying even when the coin is diving more deep down. The reason I am doing this is because my average buying price will reduce and I will not be standing at a higher buy rate. So whenever the market regains its position I will not be suffering that much.
On the other hand if I sell my coins now, I will only have $700 as of this moment. I will completely loose $300 from my portfolio. I would have no opportunity to regain them if I let go off my coin. Whereas, since I have invested in a good coin and I have seen where it can lead in a bull market I would rather hold onto them. And see the end of it. This is why people often say, only invest the amount that you are willing to loose.
We do not know when this bear market will end! Or whether this is just the beginning of this bear market. We can just assume for the best. Since the crypto market is unpredictable we can only do what we do best. Keep on going and just hold onto it. Yep, I know you might be saying, it's easy for you to say but not for me. But I was there where you are now. I have spent my share of time there. So I definitely know my friend!
This post is not any sort of financial advice! I am just reflecting my POV in this current situation! *
Best regards
Rehan
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Indeed this is a time of panic for some why a time to grow stake for some. The bear market has its advantages and it's disadvantages and for those who have experienced it before, they understand that it's buying time.
The market has never promised to be all good but it has also never promised to be good, we just have to be patient and hopeful and prepare for the worst also.
Thank you so much for this beautiful write up Rehan, I'm sure it will help uplift the minds of some.
I regret selling Hive ever. bought so much at 25 cents too
Well buddy luck might be on your side we might see the price little bit lower in the coming days ;)
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Not financial advice but I think the best thing to do now is to do nothing, and the second best thing I will be doing, if I had some fiat seating around, is to buy more Hive and probably BTC.
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Noted!
Well I would have followed the second path of yours, that's for sure!
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