Around this time last week the crypto market was down and was in the red for most altcoins as well as Bitcoin for a couple days. I am not a professional nor a whale with tons of money to manipulate the market. However the short time I have been following the market which is only a little over a month I have known that the market is cyclical. I assume many of you know this as well, especially the vets who have been in the game for years.
My observations have been that the market usually crashes as a whole every week for at least a day day and every 2 weeks it crashes for a few days worse than the mini weekly crash.
Then it recovers and almost every crypto is in the green.
The ones who are successful by simply following their YouTube channels all say the same thing, which is to HOLD your coins and use the opportunity to buy coins that are in the red by at least 10% or more during the crash.
Also I believe part of the reason so many people freak out when the market is down is that it is no secret we are in a crypto bubble. So it is a little bit like the story about the boy who cried wolf. We don't know which time it crashes, could be the time that the bubble bursts and a value of a lot of coins go down and even a good amount will go out of business at that point.
Even though my experience is still in its infancy I have been reading up and studying up on the crypto market as much as I can because I genuinely find the block chain and this market fascinating and see it as the future of the internet and technology.
From all the videos, blogs and posts I have read online the people who are good at this game all say the same things when there is a crash:
- To HOLD your coins
- If you must sell, then set a limit to sell the coins you really don't believe in holding for the long term and only bought it because you figured you will make some profit in a few months. The limit to sell would be when they drop past their support line. This mean for example if coin A has had an average value 2.50 for a few months and all of a sudden drops to below $2.50 to $2.40 set your limit to sell at 2.40 to cut your losses on that coin
- Move your money Tether, USDT since it is stable and then keep an eye on your coins as they are dropping and rebuy in at a lower price so you are still making money
- Don't even look at market value for the entire day as it may have passed after 24hrs. Why Stress yourself out over something you are helpless over
- Buy coins when the market is in red because chances are good they will rise back up in a couple days an you can sell for profit
Those are just a few tips I have picked up following the crypto market. All in all I just hold on to my coins for the most part because I make sure if I invest my money it will be for long term gains. For example my number 1 coin is Lisk. Their development team is really good and the coin is very undervalued. It dropped from $3.50 to about $2.50 this last week, but studying the company they have enough money to survive at least till 2021 if the crypto bubble burst. So even if the coin drops to 10 cents I still wouldn't worry as I believe in the company in what they are trying to achieve, so I told myself I won't abandon the coin and see it through for a few more years. I have also heard people say when they invest they think of it, as their money is gone and only invest money that they can AFFORD to lose.
This approach helps take the emotion out of investing in cryptos, resulting in less stress and more sound decisions when it comes to investing.
This is a great post, I believe looking back that it is best to just hold. I wish i would have held all my Litecoins now.
Yea man I should have should have held mine too, but being new to the game I still dont have a good amount invested in the market and bought LTC to transfer to other exchanges. Even though I made a little profit I think LTC is not done rising yet
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