- Volatility is normal
Every market suffers from volatility. It's just that some markets are much more sensitive to it than others, for a variety of reasons. It is known that raw materials and coins are very volatile. The space of the criptomonedas is simply much more volatile than any other market we know of. This is because the transaction speed and cost is as low as it can be. So the stability is missing at the moment in the market of the criptomonedas, but it will change sooner rather than later. Managing volatility is a mental game. The simplest suggestion is to control emotions when prices move up (most of the time), since it is a skill that can be applied when prices are falling sharply (it happens exceptionally).
- A flash crash is normal
The price drop this week turned out to be a flash crash. That is also a normal type of event. Stock markets have seen many flash crashes. Think of the 2010 flash, the 1987 flash, and so on. A flash is a good thing essentially. It eliminates the speculation in the markets.
You do not have to focus on the fall itself, but on the price levels. For example, Ethereum remains on a long term bullish trend as long as it trades above $ 80. That is our deduction through our Ethereum price drop analysis. That's another simple trick to control your emotions, along with the acceptance that flash crashes are a normal practice in the markets.
- Keep Ethereum Long-Term
A 40 percent decline after Ethereum rose to $ 210 does not make sense. Ethereum holders should focus on their long-term holdings. Imagine how much unexplored potential exists with cryptocurrencies. Let us not forget that the financial sector, particularly payment services, are among the few exceptions that were not affected by the digital revolution. The upside potential is huge, so it is better to focus on the long term rather than a flash crash.
- Buy the dive
Ethereum's clever owners have bought it when Ethereum was falling. A discount on your favorite cryptocurrency is a good thing at the end of the day, similar to a discount on your favorite car or restaurant. As Ethereum rises, and it will definitely do so sooner than later, you can begin to identify interesting entry and exit price levels. Once, for example, Ethereum has reached our target of $ 550 by 2017, it's best to make sure you get some money off the table to be able to enter a lower price that you think makes sense, say $ 350.
- Manage your cryptocurrency portfolio
The last point implies that you actively manage your cryptocurrency portfolio. That is the most fundamental way to manage your holdings in traditional investment. A well-balanced portfolio of cryptocurrencies with a long-term horizon will deliver unimaginable results in 7 years from now.
Source: https://www.cryptocoinsnews.com/5-must-read-tips-ethereum-gets-volatile/
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