The total value of the cryptocurrency market shrinked again today and lost around $ 100 billion in 24 hours. Most cryptocurrencies lost over 20% of their value. Since the peak in early January, the entire crypto market is already more than 50% lower. A lot of people who bought the tops are getting REKT in this extreme bearmarket, the question is can they HODL? There surely is a lot of panic-selling going on.
How to stay calm during a cryptocurrency crash?
1. Look the other way
It is advisable not to look at your cryptocurrency portfolio every hour. Negative emotions are much stronger than positive emotions. We experience more pain when something falls than we feel euphoria when something rises.
Where nothing continues to rise forever, nothing will continue to fall forever.
2. Only invest what you can afford to lose!
Many people are misled by the stories that they are going to become a millionaire when they go all-in. Cryptocurrencies are particularly volatile and risky. They can only be a small part of a well-spread financial portfolio. Everyone should only invest in cryptocurrencies with money that they can miss. Billionaire Marc Cuban once said: "When you invest in risky assets - such as cryptocurrencies - you have to assume that the money you are investing, has already been lost."
3. Buy for the long term
When you start investing and trading, it's all great as long as everything goes up, but when everything goes down and the media creates FUD, it can turn out as a disaster. But for the long term Cryptocurrencies are a great investment at any price, the cryptocurrencies still have a big future so it is better to invest in the long term and not to panick because of the short term drama. For the future a cryptocurrency crash is even a good thing! Warren Buffett has become a billionaire in the stock market by buying shares when they were crashing.
4. Diversify your portfolio
While the value Bitcoin is more than 40% lower since the beginning of this year, Ethereum is still priced more than 10% higher. Thanks to good diversification, you can still absorb the blows here and there. The cryptocurrency market is still very young so that it is not yet totally clear which cryptocurrencies will become the ultimate big winners.
Putting all your eggs in only one basket is never a good idea! Diversification is key.
Invest in projects with a bright future that can revolutionize a certain aspect of life, invest in projects in which you believe! Also DYOR, Do Your Own Research.
Thank you for reading.
Feel free to upvote, comment, resteem and/or follow my blog @maxdigi if you liked this post. I greatly appreciate your support!
Cheers,
MAXIDIGI
Thanks again for reminding us. So true and quite logical & easy in my opinion.
Also: buy a bit in the dip/panic
Yes, I wish I could!
Indeed good remark, buying at these prices is probably a very good deal with potential massive returns on the end of the year!
Duuude. I'm so happy to see it crash even more! Was hoping for this! Now time to buy! ❤️
Feels like black Friday all over again, but for crypto🤗
Thank god for steemit. It's a great place to take a time out.
Avoiding the internet has worked well for me. Limit exposure.
Indeed, that is definitely a solution, works for me too.
The most important thing is not to panic when things drop dramatically.
Keep the faith and belief!
You got a 1.72% upvote from @minnowvotes courtesy of @maxdigi!
You got a 0.63% upvote from @allaz courtesy of @maxdigi!
Your Post Has Been Featured on @Resteemable!
Feature any Steemit post using resteemit.com!
How It Works:
1. Take Any Steemit URL
2. Erase
https://3. Type
reGet Featured Instantly – Featured Posts are voted every 2.4hrs
Join the Curation Team Here | Vote Resteemable for Witness
Thanks for sharing @maxdigi
Re steemed and upvoted!
I would have to say, crypto world took a hit in a gut this past week.
Yes, thank goodness for Steemit... it;s a great distraction from watching the market... I'm just HODL for as long as much as I can