There's blood in the streets in Cryptolandia!
Unless you are really new, you've sat through "crashes" like this before. Days like today never feel good, but what can we learn? The stupid Chinese government is cracking down on ICOs (aka our method of funding our blockchain projects). We are obviously not smart enough to invest our own money. I think this is the catalyst for the entire sell off today.
As I actively watched the value of my Exodous.io wallet fall in USD terms and my exchange account bleed, I could feel the blood rushing around and heating up my entire body. The discomfort is real.
As a Liberty Entrepreneur I know that every obstacle is a opportunity if I can stay just calm enough to remain curious. This is the perspective that breeds wealth and success. Today is no different.
So I started asking myself the following:
- Was I over exposed to small-cap coins?
- Have I been chasing and scalping?
- Do I have coins in my exchange portfolio which I'm not confident and knowledgeable in project?
- Has being on an exchange created more value than holding coins in a wallet not only in BTC or USD terms, but also considering the counter-party risk of not controlling my private keys?
After actively watching ETH trade from $360 to $300, I decided that I need to simplify my holdings. I'm now only interested in coins that I believe in. Projects that I understand and appreciate (like Steem) and not get so greedy and try to make a quick buck because of a "really good technical entry on the chart". That seems like a great way to stay busy and lose your stack.
The crypto investing world is changing and just throwing money at a good looking chart in what seems like a bull market is no longer a profitable strategy.
This crash is just another blip on the radar. Everything is being tokenized and hundreds of thousands of blockchains will exist in the future.
Be smart, don't invest more than you can lose and keep learning and growing.
I hope you can find some blue sky on such a cloudy crypto day. The money and blockchain revolution will be fought by the current powers that be. Don't worry, they are fighting a losing battle. We have the advantage of win/win value creation on our side. These guys just have guns. It's just a matter of time, amigos.
Questions for YOU
- Is your portfolio bleeding today?
- How do you hedge your stack?
- What's your exchange trading plan?
- What coins do you typically trade?
- Which coins do you HODL?!
Leave a comment and help out a fellow crypto investor who might be feeling the pain today!
-Ashe
Great article to calm us down :)
I am down but not that bad since 90% was in BTC since last week. Steem has been incredibly resilient.
it sure has been. Building a strong base here for the next Steem move up. Onward to $4!!
Sold off 10% of my folio into tether about 3 days ago. Still hurts but that trade hedged nicely.
standard taking profits or did you smell a pullback?
bit of both
I sensed a headwind and sold out of all positions prior to the bloodbath, but it's easy for me - I live in Australia and sensed the change before half the world was awake. Why? I think Bitcoin's price is out of control. All other cryptocurrencies are pegged to the value of BTC. BTC falls - they all fall. Eventually, this yoke will be loosened, but for now, BTC rules the waves. That's what I think. Also, are the markets being manipulated? How can you avoid a loss? Unless you want to take a profit off the table, you have to learn to live with it. I was happy to take the profit, so I sold out. Here is a tip that might help: don't get attached to your cryptos. That is, don't become emotionally invested. If I have a good crypto that I really believe in, I'm loathe to sell. But if it's made me money, and I think it's a good time to get out - take the profit off the table, you can always buy back in. Another strategy, if you can't decide, think about this, how bad will you feel if you're bleeding money? In this particular instance, is this a correction, or are cryptos overpriced? Some are. Some are amazingly promising technovations, but will they be adopted? One coin that has gone mainstream is Ripple - yet it's treated like a pariah. Why? I think therein lies the reason for the appeal of cryptocurrencies. Ripple is shunned because it's mainstream and it's not "rare". So part of the value of cryptos is their scarcity and their secrecy - they're rebel tech geek badges of honour :-)
good points @katyclark. I usually never sell off more than 25% of my crypto positions.
Well, you are probably right - for you. I bought my first cryptocurrency two months ago. I'd heard of Bitcoin, of course, but was busy with other stuff. Then, I was sitting on a plane to Europe and started reading the inflight magazine. When I landed, Bitcoin was at $1895.....so I bought in. I have watched as other cryptocurrencies have increased at a faster rate. I think Bitcoin is overpriced. I sold out, and bought back in, to some cryptos I'd held previously, but at a lower entry point. I've learnt a lot, but this was the first downturn I've experienced. I believe that if I want to buy back into Bitcoin, I can do so - not sure that I will - but by applying what I've learnt, I can build up a store of security in lower-priced cryptos, and convert them, if I choose. I definitely haven't lost equivalent value by selling out when I did, even allowing for the % exchange fees in buying and selling.
Yes, my portfolio is down...but I'm not concerned, as the majority of the coins I hold have a proven track record of long term upward trends. I do hold a few riskier coins of the penny variety, but I buy them only in quantities of about $30 or less, and only when I've made a big profit on my main holdings.
My portfolio is down 20%. But that is to be expected. When you see a massive bull run you'll definitely get a massive sell off.
Also, I don't think the Chinese government is doing anything bad. I guess the regulation is to keep their citizens away from many scam ICOs.
The cryptosphere can be a market driving by FUD. So weak hands, noobs etc are the first to jump on the sell train when the market dips.
I guarantee many whales are buying this dip. I'm getting a few things myself. 😀
Neo hit a low of $18 today. The whales must be delirious with happiness.
I went on a crypto shopping spree....no regrets ;)
so today was the day i advised some friends it might be a good time to get in, crash = sale time and a good opportunity for new people to get in at a decent ish price
Agreed....
Portfolio is down, but I see this a a buying opportunity. Regarding what I hold, is bitcoin, etherium, litecoin and steem, I have a few others on the radar but stick to what I have confidence in.
great coins and I 100% agree
I've seen a few of these in the past. It doesn't make it any easier though. I'm hodling more ETH than BTC and at the moment although BTC is looking more resilient. I don't trade. It's a long term thing for me. So I don't do anything, just try to pretend it doesn't matter :)
yeah, that's me for 90% of my stack. I've been sitting thru crashes for a while.
I bought a lot of NEO at $43 a piece. Should I sell i t now at $18 or wait for it to go over $43 again? Or is it a good time to sell now, so the price does not dip to 18 cents and I am nowhere!
Great. Thanks for sharing. I vote for you and begin to follow you. And Resteemed...
thanks!
Super post @ashe-oro great opportunity to buy I say . holding in wallets can be a huge issue having major problems with pivx and probably going to give up on Komodo
Portfolio down about 15% from the high, but I observed my emotional non-involvement in contrast with how I used to react when I was a stock market loser. Your "blip on the radar" description fits, Ashe. My hedge is PMs. I am very new to trading cryptos and have not been successful in my small scale entry into this market. I am a HODLr of BTC, DASH, STEEM. Am nervous about STEEM, as my exposure is substantial and it seems like the upward thrusts are rather weak as compared to the plunges that occur. May trade in and out of STEEM as way to learn crypto trading.
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@ashe-oro thanks for the insight! I would call yesterday a nice crypto sale! Glad to see you cranking out more content on Steemit!
hey buddy! Trying to do my thing, u know how it is. The more I learn abt the platform, the more I like it.