Everyone is out in full panic right now with the massive correction going on in almost all cryptocurrencies right now. With almost 15%-20% price drops across the board just today, this has probably been the biggest drop on a 5 day average scale that we have seen since the price started rising so quickly. What people don’t realize is that this is perfectly healthy and a correction that we desperately needed if we want to continue to have the price move forward on currencies in the future months.
Nothing exponential lasts forever and the exponential price rises we have seen in the past month are no exception. The idea of slow and steady winning the race is not just a proverb, but also very attractive in bringing in new investors and users into the space. People may see a price rise and jump in, but if they lose money on a 50% correction they will probably get out and avoid cryptocurrency for the future. If we slowly correct 10% and then move up again in the near future, they will have more faith and stronger hands with the volatility.
There are a lot of new investors in cryptocurrency since the price rise and it is important to know the history of past bubbles and how ultimately we moved past them. Even if you bought at the height of the last bubble we had, if you had held you still would have doubled your money. I expect this to be the same in the time to come in the future. Whether it is ethereum, bitcoin, or steem, holding when the price gets too low is probably the best thing to do. Many people who sold out when the price went from 1000 to 200 called the end of crypto and they would have lost out on this bull run.
The nature of crypto and unregulated markets means that these volatile price rises and falls will continue to happen and the only way to really avoid it is if you buy at all prices and cost average what you paid. If you truly believe in the future of crypto long term, it doesn’t matter what the price you pay now is because it could be much larger in the future. This is still new technology though and people need to remember that. You still should never invest more than you can afford to lose and this is exactly why. The market might look like it is going up all the time, but the best thing to do is you can afford to hold long term.
Many people make the mistake and try to trade these volatile times and end up losing more money than they would have just holding. If you are new to the space, its best to just stop looking at the price and continue to go about your daily routine. Keep making Steemit content and forget about your earnings, grow your audience and most importantly have fun. If we aren’t enjoying our time here in the crypto space and being on the forefront of this new technology, then not even the financial gains are worth it. Keep calm and forget about the price for now and you’ll thank me later.
Just buy and hold.
Use reasonable money that you feel comfrortable to invest.
After 1-2years, you will see how it work out at last.
Be patient when doing investment.
Exactly!
The answer is no.
If the bubble is popping, it can always re-inflate.
Overtrading is an amazingly effective recipe to lose money when everybody else is making money :)
Their is no asset, which does not have the correction. For me, it is opportunity to buy more.
We are experiencing an opportunity to buy before it goes back up again.
This is exactly what I'm saying. The time is now, my friends.
I can't agree (upvote) more.
With the crashing ETH price and the recent ATH, my recent post Step Back, Elephant in the Room is a very worthy read.
What it is like riding Bitcoin bubbles: an adventure through the present cryptocurrency explosion is also probably a worthy read in times like this
There are crazy times ahead.
Thank you @calaber24p!
It's certainly not for the faint of heart, this Wild West Cryptoland!
I have trained myself to see things from a different perspective:
When I see all those red %'s in my Blockfolio app, like right now, I go "OMG, discounts!! Everything is 25% off today, hurray!!!"
😉
Keep on breathing and enjoy your life, as you said!
There is no big fundamental problem, so I guess only some air is flowing out. This is healthy indeed, what remains is a strong fundament. HOLD
This happens every time, lol @calaber24p. It's been really nice with everything so high, but if it keeps free falling, it's just an opportunity for me to buy up more STEEM :)
The Bubble is not over! This is going to be a great summer for Bitcoin.
The bubble "popped on May 25th and then picked right back up.
By all means buy/hold the Bitcoin.
and buy more
Corrections occur all the time in markets, you cannot have a bull free market without a correction at some point, because cryptocurrencies are newer (only have been around for 8-9 years), most of them are seen as speculation investments and thus intrinsically have higher volatility, hence the corrections are 2 to 3 times the size as stocks / indicies / ETFs.
Nevertheless,
Yes corrections are healthy for long term growth.
I am with you on this! The last time there was a minidump after the ETF announcement back in March I panic sold which was the stupidest move I could have ever made. I am happy to still be in the game and making better decisions throughout this price correction.
Holding the elite coins really does pay off long term.
Great post, Calaber24p! I started posting less than two weeks ago and, other than enjoying the writing, I can't say I really understand everything that Steemit entails. I figure, "just do it and let's see what happens!" I like your post as it confirms my stand and gives me the answer as to why my wallet goes from $13 to $14 any given moment! I'm now following you. I have a feeling I can learn a lot from you! Thanks again!!! 😉
@calaber24, remember the dot com bubble and subsequent crash...cryptocurrencies are extremely sexy now however most altcoins will certainly fail and only few top 50 will be around in the long run. Therefore, people should be careful in putting all their hard earned money in one and rather diversify. I think that steem and steemit platform will survive and appreciate gradually due to its concept especially ability to takeover social media industry. Diversification is the key and not gambling with your future. Good post
The Amazon.com 'bubble' made a lot of people rich. Some of those 'rich' people lost money on a dozen other dot coms because, as you suggest...they diversified.
You only have to invest in one stock or cryptocurrency if you're psychic. Most of us aren't...
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Good point, good diversification is the key because you can never lose all with the strategy
Good reminder for everyone @calareb24p
I's also a great timing as it's nearing the time when I will be putting another piece of income into crypto so the fact that the price is going down is great :).
Though I would buy no matter what (though what might be slightly different).
Cause as you said, if you are investing and are here for the long-term as you want to support this amazing revolution then it doesn't matter at what price you buy if you keep buying regularly for same or similar ammont.
It's also mathematically calculated on past performance (even though that doesn't mean anything).
Though even if you might lose some profit oportunities, etc. the health and time benefit is I'd say way more important. Especially for the general public. (I am saying this cause I believe that I'm good at handling variance, etc. as an ex poker-pro and , let's say, a stoic - though I laugh saying that :D )
I jump up and down and cheer when one of the currencies I've chosen as a long-term investment goes in the crapper. And then I buy a bunch of it.
When I want to make a quick buck I buy a new cryto-currency that a logo that consists of a big-boobed girl. When I want to invest I choose a crypto-currency that has a logo with a small-breasted nerd-girl wearing Buddy Holly glasses...
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I think that's a very solid way of looking at it.
A big-breasted girl, you want her for a night or two. Though th esmall breasted cute looking nerd girl, you want to have a long-term relationship with her and see where it goes :).
I was originally going to use an analogy to 'kittens' but thought that might be a little too risque...
It's just a well deserved correction... consider it as a little break from the madness that was going ...
Just what i needed to know. Keep steeming
Thank you very much for your post. I'll keep the good advice and will not repeat my past errors ;)
HODLing through thick and thin
The having fun part is so important!
Nice post, thanks for sharing :) Resteemed it. Will be following you from now on ;)
crash is good, i hope it goes down another 50%, that will be good for the market
This. All of this. While my friends agree the drop was much needed, they cannot stop obsessing. Checking the numbers multiple times a day, and letting it take over their lives. I get being aware, but letting this completely consume you isn't healthy. Take a walk in the fresh air and wooooosaaaah!
BTC/USD inflection point at 4H. Look for a reversal today
Panic sell and chill.
Wow that's how to get rid of fear. But must be observant and careful.
The inflatable heart of the balloon must be pounding
I'm waiting for ether to make a nice drop so I can buy at a fairly 'low' price.
But this drop sure does hurt when I look at my portfolio. But I have faith for the future. Constantly looking at the price does nobody a favor these days.
Buy when everybody lost money;
Sell when everybody brags he has earned
Nice post. followed and upvoed :)
seems like the right time to start buying a little and keep plenty of reserves too.
Agreed, a pull-back was necessary. Now if only I could get my hands on some coin...
Hello. I find your posting valuable.
Is it fine if i translate it to Korean and post it with your posting links?
great article
No Bubble yet, when we get to a market cap of a trillion then let's talk bubble.
Excellent advice. DON'T PANIC this is normal :)
it is soon up :)
Thanks to you to remelber this. Many investors don't really understand what are crytpo currency. I always suggest to only invest in project we beleive in, not just due to price graphs.
BUY THE DIP!
We might have all lost money last night.. but no worries. Buy the dip, the prices will go back up, and we shall prevail!
Better to see a correction back to a previous weeks high than a true free fall into darkness. If anything, you should contemplate buying. As excited as people where for the $300+ jumps, you should remain proportionally calm during a $300+ dip.
Crypto currency isn't going anywhere, it's here to stay and will have it's fluctuation like every thing else on the markets.
Good post
Time to buy! Just wish I had more cash right now
Don't be panic ...Its a just a short term ...buy and hold..but don't believe me...
Get buying opportunity
Central banks raising rates, economy going south soon, think now or after a bit more of a fall its time to reinvest.
I am new in this space, what is a good suggestion to invest in this downturn?
Invest in cryptocurrancies take patient. You have to take a risk when you put investment in any business. @calaber24p upvote and follow you
I am a believer too. Thanks for this calming message to those of us who are new at this. Much appreciated!
I will be patient for at least one or two more years.. Maybe even buy more when the power of the bears seems to decrease :p. And I'm a student...
Typical ups and downs of the crypto world.
Check this post out, you would love it https://steemit.com/crypto/@daudimitch/cryptocurrency-market-goes-red-what-you-should-know