Dumping In The Blink Of An Eye
I think that being in the cryptocurrency space for a while now has desensitized me to the volatility that we experience on a regular basis. I'm pretty well adjusted to understand that we can see 5-10% swings over the course of a week or so. With that being said, I'm still not used to seeing enormous down or up candles that happen within minutes that cause huge liquidations on either side.
The movement of Bitcoin last night made me thankful to not be doing any leverage trading at the moment because... wow.
Within just a few minutes, I watched Bitcoin crash around $1000, that is not something you want to see from the cryptocurrency that we view as the most stable.
Now of course there are outside events that cause these price swings separate to just the cryptocurrency market (i.e. wars, recessions, stock market news, etc.) but it just feels like a terrible time to be investing as the uncertainty is so high. I have no idea of this time tomorrow we would have seen a $2000 rise in Bitcoin price, it is certainly possible, but I have completely given up on trying to predict or understand the movements.
Long Term Is The Only Way
After seeing how crazy things can get on a daily or weekly time frame, it is more apparent than ever just how much safer a long term play is. The odds are in your favor to make a return on your investment holding it for a few years rather than a few days; it is just more difficult because you need patience and discipline (some things I usually lack!).
I think that dollar cost averaging is still looking like the most efficient way to shield yourself from devastating crashes like we saw yesterday and will continue to see despite what we may want in the market. Nothing new here to be honest, just another reminder that there is a safer way to be involved in this space. Nothing is guaranteed and advice can really only be given with any quality in retrospect, but I will follow what has worked in the past for others when it comes to my savings because I am an absolutely terrible day trader and I know it!
No matter what you want to be doing, make sure you are prepared for more volatility as it doesn't seem like the markets will be getting any more stable in the coming months. Good luck!
Links and Connections:
Join me on Splinterlands exploring blockchain gaming
Get paid for your search results with Presearch
Follow me on Twitter/Instagram: @ Rob_Minnick23
Hive: @ rob23
NEW TRIBE: @dunksocial
Join me on Torum
Check out Cake DeFi for staking rewards
Bitcoin Cash Apps: @ rob23
Join me on Publish0x to talk crypto
Who I am:
My name is Rob and I am a financial analyst with interests in cryptocurrency and blockchain. I have enjoyed my time thus far engaging with Web 3.0 and am looking to continue learning more and sharing what I learn through my experience.