The winter is coming...
The streets are filled with blood...
The bears are drinking coffee...
The bulls are eating mud...
I was never a good poet so I am sorry for this intro ;) but don't take your life (and money and crypto) to seriously and try to be a little bit crazy from time to time, it is good for your health.
In my blog from 2 days ago, I told you that "I have put 15% of my portfolio in USDT to get some sleep!" Of course, I would be much happier if that percentage was even higher, but this was great move anyway because as you can see today - The cash is the king!
I also told you that "In my opinion, the market could crash tomorrow, but at the same time, we could see it at 10 Trillion by the end of 2018 and BTC at 100K+" and as you can see I got it right with a first part of the sentence and for the other part we will have to wait for 12 months to pass, but I expect to be true also.
Today we have 3 market questions that need to be answered.
How deep will it go?
Is this a beginning of a bear market?
How to survive (and stay semi-normal)?
First, it is important to say that I am not any kind of crypto guru or time traveler with 100% precise answers. I am just a small investor and crypto lover that spends a big number of hours daily reading and listening to people smarter and more experienced than me so I can make some picture of mine about the market and its potential future.
How deep will it go?
In last few hours, we are already seeing a nice bounce back so all of you that are too nervous to live through normal correction or just need their crypto money for New Years Eve cocaine have a chance to sell without much loss. I expect that this is not over yet, and in next few weeks market could be wavy. This was absolutely expected. You don't need to be some technical analysis expert to see that market was booming for 5 - 6 weeks and there was no real correction from that China ban story two months ago. Also, you could hear from different sources that it is usual for different financial markets, not just crypto, to slow down or go down during the Christmass time. The reason for this is that there are still normal people out there investing in cryptocurrencies (Not like you reading this or me writing about it), that want to spend some time with their families for this week or two of holidays and forget about the market. So is it possible to see Bitcoin at $8000 or Ethereum at $400 in the days to come? I think that we should not be too surprised if this happened, but it is not expected to stay that low for long.
Is this a beginning of a bear market?
In my opinion, there are so many positive things going on in the crypto world at this moment that it is highly unlikely for bears to come at this moment. The blockchain is bringing revolution to a big number of businesses and rapidly changing different areas of everyday life that in next few years it is expected to go mainstream big time all over the world. So much new projects are coming in 2018, Big investors are excepting Bitcoin as a serious investment vehicle, small people are becoming curious about this new technology and the way to make money and so on... In my opinion, it would be really strange to see massive selloff and market in the red for some longer period of time.
How to survive?
I know that you can hear a big number of "experts" advice and that it is probably too late for most of them, but I must repeat my favorite investing advice:
"Don't invest what you can't afford to lose"... Because you will lose it then!
What do I mean by this? I mean that if everything goes down 50% and you have invested more than you can lose (Your launch money) then you don't have other option but to sell and lose money. On the other hand, if you invest money that you can lose, then you can just leave it, forget about the market for some time and sell it when the price goes up again without losing anything.
You can also learn how to short, and earn the money even if the market trend is in the red. Personally, I am not to good at this so if you decide to give it a try please be cautious, invest small at first, learn from your mistakes and of course "Don't invest what you can't afford to lose".
Maybe you just can't stand looking at your portfolio in red. It is making you nervous too much, you are angry all the time and arguing with everyone for no reason, your heart is pumping hard, you are sweating, insomnia it taking you over. In this case, just sell and cut your loses. Nothing is more important than your health so it is not the end of the world to accept that crypto is not for you, and just sell.