FOR THE MAJORITY OF YOU READING THIS, THIS ISN’T YOUR FIRST MARKET ‘CRASH’/CORRECTION. HOWEVER, FOR THOSE OF YOU NEW TO THE GAME, HERE’S A FEW PROACTIVE AND REACTIVE MEASURES YOU CAN USE TO MINIMALISE YOUR LOSSES AND MAXIMISE PROFITS.
A bull market is fun for everyone, and we experience quite a bull run from January last year up until around July where we experienced (to a minor degree), exactly what is happening now.
New investors are freaking out, waking up to 60% declines in their portfolios overnight. However, by grouping yourself into one of the following categories, the team here at Crypto Hub are confident you’ll make it through this market dip just fine.
The ideal exit strategy:
If you’ve been through the ropes a few times, and this isn’t your first rodeo, you would have had a solid exit strategy in place in case of a scenario like this. If you haven’t planned an exit strategy, you may as well skip to the next category, as you’ve practically missed the opportunity to ‘lock in your profits’.
The ideal experienced trader would have locked in his/her profits last week and moved them into Bitcoin, prior to selling off their Bitcoin for FIAT. However, ideally, you’d want to hold onto your LONG TERM ALT COINS despite selling all of your bitcoin into FIAT.
The aim of the game with this strategy is to hold your long term alt coins, and buy back into Bitcoin (and other coins) when they’re at their lowest (which is still yet to come, we believe).
You missed out on cashing out:
It’s not the end of the world. It IS a learning curve however. You can scream HODL all you want, but what you’ve essentially done is passed up on the opportunity of increasing your bag holdings without having to inject new FIAT into your portfolio (which is why the ideal strategy above is really the IDEAL strategy).
If you didn’t cash out, you’ll be wanting to focus on one of the most fundamental rules of the cryptocurrency game, which is, you don’t sell at a loss.
So HOLD.
You may inject new FIAT onto cheap coins where you see fit (always DYOR).
You’re new to cryptocurrency and don’t have a clue of what is going on:
Congratulations, you’ve accidentally almost set yourself up to be in a better position than those in the above category. You’re a fresh investor, with disposable income, ready to blast your self to the moon. Well don’t get your hopes up of your rocket ship launching any time soon, as we could be in for a 3-4 month ‘bear market’ period, where we won’t really see any substantial growth.
However, use this time to learn the ropes, learn from OTHERS mistakes, and most importantly, start researching which coins you’d like to invest when you do begin building your portfolio.
One thing we can ALMOST guarantee you is that, the prices you’re seeing in the next 2-3 months will be a rarity in the future, as most of the top 30 coins will be well an truly on the moon.