Anyone watching the cryptocurrency space for the last six months has just been watching the prices drop, and there seems to be no bottom in sight. You'll see a lot of people who have invested a while ago that keep saying HODL, and then new investors who bought at the all-time highs that are only holding their coins because they don't want to sell for a loss.
Most people don't and shouldn't trade because they aren't good at it. We all have lives that don't involve watching the charts every minute. And watching them go down for six months can hurt your mood and outlook.
Many investors look to Warren Buffet for investing advice, even if he has said negative things about cryptocurrency but for the most part, his strategies are solid. On CNBC's "On The Money" Warren Buffet said, "that buy-and-hold is the best strategy." He went onto say "The money is made in investments by investing, and by owning good companies for long periods of time.
Now, "good companies" is hard to look at in the cryptocurrency space but you can look at things like Bitcoin and Litecoin that have proven themselves over the years. These are much safer than tossing your money into the new hype coin of the month.
I have been in the camp of just holding my coins, I do believe in the technology and have a feeling good things will come but as you see prices move as they have over the last few months, fighting that itch to do something is hard.
I honestly wish I would have sold when everything was up, and I'm sure everyone else wants that too. But I'm here now, and I either sell at the low or I wait. I think it might be a good idea for a lot of people to take a small portion of your investment and trade. If cryptocurrency is a gamble, then why not make some bets.
If you are anxious about your other investments then maybe you should get out. Perhaps take those coins, lock them up, remove data from your blockfolio and pretend they are gone. OUT OF SIGHT, OUT OF MIND.
Now you get the best of both worlds, you're holding for the long term, and you get to play the field a little bit. Make some of those long shot bets like CET or Tron. Or try and trade the 10% - 20% volatility we see daily.
Selling high and buying more at a lower cost is excellent and if you can do it successfully, go for it.
You invested knowing this all could go to zero and that's scary, but if that's your mentality, then a little 80% drop won't kill you.