Over the last year, Bitcoin prices have been on a roller coaster and nobody seems to be able to predict where they're headed next. It's a risky market but ic can be high rewarding if you have any clue of what you're doing. But what to do when the market crashes and see the price go down? Should you stay away, should you invest, should you cash in and run away with your losses or smaller profits? The answer depends upon multiple factors:
1- Do you have any money invested on Bitcoin or not?
If you do have money invested in Bitcoin, it's time for you to choose if you want to cut your losses or wait for the market to rise up again. You must be aware though, that although so far whenever the market crashes it eventually rises up again, this is not a guarantee, and it might so happen that the crash you're experiencing is the downfall of Bitcoin, making your investment worthless, so be careful. Remember, every time you put money in high risk investments, consider it lost, don't count on its profits.
If you don't have any money invested in Bitcoin you might be thinking, "this is a great time to get on the profit train like everyone else". It may be the case, but again, remember it is a high risk investment, and you should be very careful when making this decision. If you get in during the crash you might go down with the others who are still on, or you might make a profit, but there's no way of telling before hand, which leads us to factor 2:
2- Wait until it stops dropping
The biggest mistake people make, especially those who are new to the cryptocurrency market, is assuming you should buy when it's dropping to profit when it stops and goes up again. The truth is, Bitcoin works like a dangerous substance. If you drop it, step away and let it reach the bottom before picking it up. If you try to catch falling objects, more often than not, you'll get yourself hurt. Wait until it stops falling, and only buy in when it starts rising again, that's the best strategy (if you plan on investing).
The important thing is: price crashes in Bitcoin are not uncommon and won't stop happening. The only thing you have to do or know is if you want to try your luck in this market. If you do, now you know the steps. If for some reason you're already involved with Bitcoin, know that it's probably worth holding on to your cryptocoins during a crash, considering that most experts believe the currency is here to stay for quite some time.