This is the way that the game is played, and it's very important to realize this aspect of Cryptocurrency trading. The market is flooded with newcomers who are not used to these large market fluctuations. Understandably, if you bought 1 Bitcoin at $4500 these past days have been very tough on you, especially if you are new to the crypto scene.
But those who are longer in the game and bought in cheaper have seen these fluctuations before, and have toughened up. Cryptocurrency trading is not for weak hands who panic easily when their investment drops 30% or more right after they bought it. You'll have seen the HODL meme by now, and it's much more than a meme. It's a trading philosophy that has a proven track record and is based on a long term vision of cryptocurrency. HODLers are generally people who believe in the future of cryptocurrency. They are not concerned with some short term losses due to the uncertainty of weak hands.
If you managed to HODL during the dips even though you made a loss, congratulations, you're part of the veterans now and may call yourself a HODLer! This is what we all go through, time and time again. In due time, you'll learn how times like these actually present very interesting investment opportunities and are often the perfect time to buy into a cryptocurrency. And that is exactly what experienced investors have just done during the dip.
What this means, strategically in the long term, that more cryptocurrency was just exchanged from non-hodlers to the hands of hodlers. More people hodling = less people selling = price goes up.
I believe it is for this reason alone, that many cryptocurrencies in general will continue to rise, even those with apparently little merit to them. After all, I too am using this dip to buy more, and hodl. Or trying to, at least.
Disclaimer: Memes are not my creations
I'm hoping this leads to coins trending on their own merit. I'm trying to hold coins with projects behind them.
Me too since I hold projects with good fundamentals too!
But when you look at how even crap coins retain value.. the market dynamic is such that as long as some people are hodling and keeping their capital locked in, value will be retained. They can't get it out without buyers, of course.. but those can be easily created. Just created fluctuations to draw daytraders in and sell off in small parts. This is happening with many small cap crypto's as we speak...
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Im officially a hodler!
Its tough to watch the drops. Makes you want to say trade. That could go bad fast though.
Picking good projects and hodling is my strategy. Thanks for the post!
Thanks for your reply! Congratulations on being a veteran now ! It will be the first of many surprises you'll have along the way.
Trading is very tempting, but in my experience it is very stressful and is not as easy as you may think. I've made a few percent extra gains here and there, but sooner or later you'll be caught in a bad trade and all your gains are negated by one massive loss. Then you're forced to sell at a loss, or hodl until it gets back up again. It's almost impossible to time the market, especially since big parties will have people 24/7 and bots which are much faster than you are.
The easiest way to win at their game, is to not play it and just hodl :D
As long as you have invested in a solid project, of course. When in doubt, sell and go find a project which you do believe in, instead. That's what I am doing and I sleep like a baby during these times!
Thanks! The 24 hour thing would probably drive me insane! I would not be sleeping like a baby, lol!
Taking baby steps, testing out small amounts in dollar cost averaging strategy. I do need to find an easy way to get fiat in and out of the market, mostly in!
I have the same problem!! The money I have in, is fine. But getting new money in means I have to go through intermediaries where I can't set buy orders at a specific price. So I miss out unless I am sitting around with my finger on the trigger for the right moment.
Additionally, it's also more expensive to buy there than on an exchange. So it already costs me like 5% extra to purchase it, if not more.
I've been involved with Bitcoin for 5 years and so have seen some price volatility and it's always the same story - people get caught in the hype, buy at the top and end up selling when the price falls and feeling ripped off and disillusioned.
I agree! In some ways we are still at a high point and it is risky to buy in. I am only adding small amounts to my investment because I know that every satoshi cycle has a downturn too. We may have hit critical mass and break the cycles, but if history is any indication, after we have topped we will be entering a long and slow bear market which could take a year to recover.
I truly don’t think this is the bottom yet. You might see those who bought this at 200 sell off because volume is kinda going down. You will likely see another dip before we sustain a comeback. Too large of an increase for whales to hold. 60 bucks in a day is a fat load of profit. Sell off will remain when China and North Korea get out for the day.
I kind of hope so.. I still need to buy! If it doesn't go down, I may not..
According to history last reversal wasn't straight up. Last july when reversal started It had a nice last bounce from 190 to 237 and it broke right and went down one more time to 188, lets just call it 190. I think there will be a healthy dip soon. slower the better, last one took a week. But if its a large dump its too volatile to be healthy. We might see 220 230 range again soon.
Yeaah I'm agree. I also HODL and take the opportunity to buy cheap
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STOPThe temptation to trade is huge but hodling may be the best bet. I actually wrote a post here on my thoughts on this.
This is interesting, I'm new to all this and just learning, but it sounds like basic investment advice you get signing up for a 401(k) at a 9-5: riskier funds for younger people who are going to hopefully leave their account alone for fifty years and so can ride waves, and less risky funds for people close to retirement (or with weak stomachs) who won't get as good returns.
I honestly don't think it will take fifty years for crypto to skyrocket though!
I don't know about the 401k's... we have a different system here in Holland! Generally I consider 'hodling' to be safer than trading in the short term and trying to take profits!
It's just trading on the stock market, in a fund that is managed by whoever the company hires to do so. They tell the younger employees to choose the riskier fund which will fluctuate because they have time to ride it out, basically, whereas if someone was due to retire but right before there was a crash ...you get the idea.
But I agree, I doubt crypto would take so long!
Crazy times, trade it X100
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