So we had a interesting week, some will say, "a week from hell!", while Smart Money is rubbing their hands as they're salivating over the new discounted prices that are available to them.
You see, there are 2 side of a coin. There's the side where it may feel your world is crashing down, your sitting in front of your phone or computer and your seeing this correction happening in front of your eyes. All you can think is, " DONT BLOW IT! CANTHIS BE THE CRASH LIKE BITCOIN IN 2011?"
To that I say, "NO" and heres why.
The cryptocurrency market has gone up exponentially. We went from a cryptocurrency market cap of $30 Billion to $90 Billion in a matter of 2.5 weeks. THAT IN ITSELF IS CRAZZZZYYY. Nothing can just go straight up, make a parabolic movement, without a sort of correction. I was fortunate enough to make some life changing profits. What I generally like to do is when a coin hits a new high; remove my initial investment, so only the house's money is at risk. My initial risk has been eliminated.
Another way of looking at this is, you got to say to yourself, this market didn't triple in marketcap because of some major pump, there are real threats facing the United States, China, Venezuela, India, and all other major markets. We are in period in history where the markets have disconnected from reality.
Blockchain Technology and CryptoCurrency is here to stay. I strongly believe that. Some hard economic times are ahead of us and there will be some major disruption hitting our markets. I look at Venezuela and say to myself, "That can happen here in the U.S.".
Also, in my opinion, invest in the cryptocurrencies that have strong development and potential commercial use. Those are the coins that will survive in the long term.
All of this may come as a surprise and shock to new entrants in the markets but for the seasoned crypto veterans this is just another normal day in crypto. As a trader you need to become comfortable in bloody markets, in fact thrive and profit in them! When you become a battle hardened trading warrior you'll build up immunity to these types of moves. This will give you an edge to profit while everyone else panics. This process can't be rushed, it only comes with time and experience.
It's important to note that the best time to sell coins is not when they are 3 days in the red but on the bounces. Controlling ones emotions and being patient is key but also something that comes from directly experiencing these types of dumps on a regular basis. Also buying things low when they are cheap will give you peace of mind vs buying high and watching everything drop.
Store your coins in a hard wallet where it will always be protected.
If you were to ask me, " What are your top 5 CryptoCurrencies" they would be in this order:
-Ethereum
-Bitcoin
-Litecoin
-Zcash
-Dash
The others with some major upside potential with some great news, in this order:
-Litecoin
-Monero
-Golem
-Nem
-Bitshares