We can see it everywhere, the winter is slowly moving to spring, the snow is melting and the first little flowers are starting to show.
This should be the period where all the bears wake up and apparently they are doing the same on the stock and crypto markets.
)
This is not a 3 year thing (at least I hope so) but it has gone on for longer then most new people estimated. There is a little bit of uncertainty creeping into the loud Moon, Lambo and hodl cries. Most people got into crypto last year and a lot of them are now nearing the area where they bought in. Up till now they were still in profit and it was easy to shout HODL. It isn't that easy when you are actually in the red.
So what can you do to counter this?
Well, it is a matter of perspective...
there have been several crashes already in the past but overall the markets, both stock and crypto will move up after these corrections.
Looking at the short term the markets correct in what seems like something that is going to kill off all profits but if you look at it historically it all isn't that bad, it always bounces back. This is like this in stocks and in crypto (look at Mt Gox)
Do not bet everything on one horse:
Even if the race is rigged there is always the odd chance that the animal will break a leg.
What I have always taken as sound advice is to spread the risk.
So do not put everything in Crypto and personally I would not put everything on one Crypto (even though some maximalists might disagree)
I have a small stock portfolio, I have a pension saving fund, and own small part of an apartment. So that when the stocks and Crypto crash I still have some backup. I will also start buying a bit of gold and silver now that I am a bit more informed. They are all investments but they spread the risk. I am not rich by any means but I am trying to secure my future in a smart way.
Even out your buy price through time
so what I am now also trying to apply is to cost average in. I have set aside a small amount every month to normal savings, another part to pension and a third part into Crypto. So every month I am buying a bit of BTC and storing that in a hard wallet for long term storage. This has now turned into a long term plan, I hope to be doing this 10 years from now or at least as long as I can afford it.
In this way I will be able to counter the big swings like the ones we saw in the last months.
If you are in this for the short profit then this is not good advice for you. (but unless you really know what you are doing you should not be doing any short term stuff anyway)
STEEM is really a good system as well because you can compensate your cash investments with your proof of brain... that is also a way to cost average
picture from http://www.tfaconnect.com/dollar-cost-averaging/
be weary of the mountains
when you see a spike like the one we saw in dec/jan that is usually to good to be true so when you can, take out some profits. I did sell some but way to late (I was just a greedy little dude like the rest). I am lucky to still be in the green overall but it could have been a lot greener.
A while back I also sold my ETH and this is now ready to buy back into the market when the time is right. I am now sitting on my money but I have to admit it is a hard thing to do. I really have itchy trigger fingers and desperately want to buy something. (I sometimes feel like a junky, addicted to crypto)
But I have now found a bit more my inner calm and am practicing restraint.
(I am mentally stacking stones and humming to myself)
Another thing I am now doing instead of the constant worrying and fretting is reading
Yes, reading
I am trying to absorb as much knowledge as I can in order to improve what I know. This will allow me to make more and better decisions based on my own insights instead of having to rely on others. This way I can ask the ones who know more some advice based on my research instead of asking them what I should do and blindly following them.
I hope this has been able to help some of you with the worries you have. In any case there is this thing that all self declared advisers always say and they are right, each and every one of them (even if the rest of their advice might be pure nonsense)
Do not invest what you cannot afford to lose
- are any of you guilty of putting in to much?
- are you using any of the methods above?
help me cost average in by upvoting this post...
and as usual there will be an upvote for constructive comments
Great article, thanks for that! Lets see how the market move in shortterm, I think longterm we see the Crypto Marketcap going higher and higher.
Cheers, smix
lets hope that is true...
This is a great article, full of useful information! I agree with everything you have said. Lets just hope this recovery gets moving soon! I am pretty diversified myself I want to keep pumping more into some decent alt coins hoping for the future!
I would wait it out a bit, personally i am a bit fearful of an upcoming down movement
@felander if i have the funds i will take the steps you have taken to( set aside a small amount every month to normal savings, another part to pension and a third part into Crypto.) as i write to you now am just holding and praying things get better.(and am guilty of putting in to much?) thanks for the advice.
BR
JAVAPOINT
I am not that religious so I guess i do not pray, thats why I am reading now. So i can avoid the mistakes I made before
ok i understand ,. so what do you advice i should keep holding right?
bears are coming or bulls are back?
I would say the bears are coming for now
now all currencies are not clearly marketed. like there is something weird with the virtual currency. how do you think friends
the one with most marketing are lots of times the ones with the least to offer
No more Yacht......
maybe later? as I said, the market does come back, just takes a bit longer... start with a dingy?
Got it!!! They see me boatin and hatin......
thats the spirit... go lewis
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Very nice article, thanks for sharing. I've smashed the upvote button for you!
I agree with the spreading your portfolio, although i mostly hodl ETH (It's been a tough few months).
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Would you think that current crash is related in any way to Mt Gox and Bitcoin futures?
It seem that those 2 are main reasons why entire market is dropping.
Would you think that current crash is related in any way to Mt Gox and Bitcoin futures?
It seem that those 2 are main reasons why entire market is dropping.