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 :-)
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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.