A lot of people are concerned with the recent drop in cryptocurrencies. Don't let it get to you. If you sell just because everything is in the negative, you might want to think about if you should even be in the market to begin with. Pick yourself up some lotion with lots of vitamins and minerals so you can grow yourself a thick skin.
One of the first cryptos I loaded up on was Ethereum. I bought it during the ICO back when a lot fewer people even knew what an ICO was. I believe I paid like .29 cents each. And then I had to sit on it for at least 2 years before it did anything. It wasn't like its been over the last few months where you could put $1,000 in the market today and take out $2,000 by the end of the week. You actually had to wait.
Today, we have almost 800 different cryptocurrencies. And there is certainly a bit of a frenzy surrounding them. And so there should be. This is some seriously disruptive technology capable of accomplishing some very amazing things for humanity in general. Keep this in mind when you see almost all cryptos in the "red." Remind yourself frequently of the fundamentals behind them. Some of the current frenzy might be people just jumping in to make a buck, but that is not the true root cause to the frenzy in the first place.
Some would have you believe that cryptos are nothing but Ponzi schemes and that the frenzy is nothing more than ignorant and greedy people. This can play with your mind if you let it. Especially when the market is down. Chris Duane from, "TruthNeverTold" on YouTube, is one of those people who will try to scare you. Ignore him. I've already had a run in with him and he is willfully ignorant. You can present him with the most basic of definitions (including the definition of Ponzi scheme) and he will not budge. There is only one possible reason for him to ignore the most basic of information. He wants you to buy his silver. I think silver is great. I suggest stacking lots of it. But this is Chris' livelihood and while he has stated otherwise, he really is threatened by cryptocurrencies. And I understand his concern. There is most certainly an extremely large number of people buying cryptos (especially the earliest of the early adopters) who hate government and their bastard dollar, and want them out of their lives, and to just be left alone. These same people know the value of metals and if they weren't buying cryptos, they would most likely be buying silver. For that reason, Chris Duane has shown us who he really is. He chose to attack us all as if we are a bunch of backwards inbreds in the hopes of steering people away from cryptos and into buying his silver.
I now understand why he is incapable of seeing the future value of cryptos. He can't even see the very clear path he could have, and should have, taken. Chris could have positioned himself amongst the crypto investors and instead of making enemies, he could have easily made friends by promoting his silver business instead. Many of us in cryptos are not stupid, and we know the value of diversifying. And like I said, we know the value of metals (especially silver). Our investments in cryptos are not about getting into and permanently staying in them. We want to be able to extract plenty of wealth from them and further diversify in the physical world. This includes buying metals. For many people, their only source for money to buy silver is their boring, mundane, and low paying jobs. This means the majority of people will never have such a luxury. Cryptos has changed that for a lot of people. It has turbo charged their finances so they can get out ahead of silver while its still dirt cheap and stack like they've never stacked before. Could Chris Duane have tapped into that? I should think so. It's not the most brilliant move to turn your back on those who love to stack silver just because they're buying cryptos. What he's doing is pissing off a lot of people who now have mega wealth to buy silver by the truck load. I continue to stack silver, but I can assure you that none of it will ever come from Chris.
As I started saying above, greed and lunacy is not the root cause to the frenzy surrounding cryptocurrencies. The root cause of the frenzy resides with the fundamentals behind them. When I loaded up on Ethereum there was no frenzy in site. I bought it because of the very serious potential of the technology at a fundamental level. I was not alone. And many of us continued buying up new cryptos as they proved to bring even newer things to the table besides just being a currency. And our numbers grew. And then we started seeing some healthy gains. Eventually, many others jumped on the bandwagon, knowing nothing about what they were investing in. We certainly appreciated the liquidity they brought with them. I don't begrudge them their gains.
If they bought in, they deserve no less to succeed than the rest of us. I do think they have contributed to the massive increases in values over the last few months, which is actually not so bad. Its actually helped a lot of the "long holds" by allowing them to sell some of their holdings and diversify further into other cryptos. Are we in a bubble? Perhaps. Should we be concerned with it? I'm not. The fundamentals are solid. There is an enormous amount of brainpower at this fundamental level, and some amazing things are being created every single day. Things that, when fully deployed, will be extremely valuable and will fully justify the pricing behind them. You bought into this. Now hold and be patient.
If you could buy anything and the value immediately went straight up through the roof every single time, you would quit your job and do exactly that with every cent you had. And not only would you do that, so would everyone else. Then what would happen? This cornucopia of wealth would disappear as fast as it showed up. Things don't work like that. Well, unless you're the Federal Reserve pumping money into Wall Street so that you can maintain the illusion of wealth through a "growing" DOW.
Prices fluctuate. Get used to it. And sometimes those prices swing hard. And if you're not properly positioned, or in the market for the right reason to start with, those swings do have the ability to destroy you. But they will not destroy you on their own. You will find your destruction actually resides within yourself and the choices you make. And at the root of your choices you find.... your emotions. Emotions are an amazing thing. And for 96% of us who are capable of feeling them, they provide us with some wonderful experiences. But for investing, squash that shit. It serves no purpose here. Do it! Squash that shit now!
Think about all of the times in your life when you did stupid stuff. And how many times you let your emotions get the better of you in situations where you felt like you weren't in control. Your emotions led you down a shit path and to a shit ending, making you feel far shittier than had you done nothing at all. And then what happened most of the time afterwards? After things settled, you saw that you should have just left it alone in the first place and it would have taken care of itself. Now put it to practice, and leave this shit alone.
When we see large spikes in price increases, you can expect to see rapid declines at some point. This actually makes perfect sense. When there is upward momentum and an "excess" of buying, that buying pushes the price further than the "real" value. When the rally stops, the market will eventually adjust and retrace (often by 50%+). This is ok. This is what you need to embrace. You want your holdings to go up in value, right? And you know that a straight line that goes up and up and never comes down is a ridiculous expectation, correct? If all of the red losses in cryptos is freaking you out, we just need to modify how you're looking at it just a little bit. Since rapid increases produce disconnected values that eventually correct and drop, because the market (when left alone) works that way, and because this happens at some point before new highs can be achieved, you should actually be excited when you see all this red. These corrections are what must happen before we continue to see new all time highs in the market. If you lose your ever-loving mind when you see all this red, and your emotions make you sell it all, you'll find yourself with no position at all when the market turns around. And then, by the time you convince yourself to jump back in, you'll be paying a much larger premium to reenter.
If all of this market correcting still has you freaking out, go to YouTube and do a search for Jenna Marbles. She'll explain to you, that you just need to "Pipe the fuck down!"
I hope you found this post useful and that its helped to alleviate some of your stress. If you liked it, don't forget to up-vote, re-steem, and invite any whales to do the same.
Good luck out there!
I support the notion of not panicking. Either you believe this field has a future or you do not. If the former, take this as an opportunity to buy some extra. And never invest funds you cannot afford to lose.
This won't be the last time that cryptomarkets will tank.
You got that right! Bring it on! Remove the weak hands and wait it out. ;-)
upvoted and following, thanks
Thank you jason! I've done the same!
Great article. So true that emotion doesn't go with investing. I have paid that price many times. I am really enjoying crypto and have been @ it for a few years now. I have been bargain hunting since the correction started. I am not ready to move gains into fiat because I don't want to pay capital gains tax. Besides I don't want fiat.
Capital gains makes me angry! When it dictates what we do with our investments, there is something very wrong with that. I have a crypto that I will have had for a year in August. I refuse to pay government thugs any more than their extortion racket will demand so I will not sell anything less than a year old. They have no skin in the game, but still interfere and control my decisions for an entire year.
The gamblers who poured money into crypto have a very short term view. As much as I like making a 1000% plus gain in a month on a number of my coins. I'm here for the long haul and am a firm believer that this concept will change the world like the iPhone and other game changers did. Not every cryptocurrency will survive but some will go to the moon.
The majority of them are definitely garbage.
Loved the article. Followed and look forward to seeing more of your content. :)
Hi again summerxxx! Thank you. ;-)
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Thank you for this helpful crypto advice! Keeping your head cool is an important trait not just for investing but for life in general.
Funny how all the seemingly unrelated is actually related. ;-)