It's seems that almost everyone in the cryptocurrency world are panicking right now. Why? Because the entire cryptocurrency market is crashing. It has lost about 400 billion dollars in a week or so and many people are scared and selling their cryptos, many are losing money and saying that the crypto bubble is finally bursting.
But there's also a lot of people, who are more educated and usually have more experience trading who are actually really happy that the market has and is losing a ton of value. Now why is that?
That's because the market isn't necessarily crashing, the bubble is definitely not bursting, at least not for most cryptocurrencies and not for cryptocurrency market in general. What we are experiencing, is merely a major market correction which happens every single year around this time, mainly because of the holiday season in the west and in China.
Pretty much all cryptocurrencies have lost a lot of value and their prices have gone down.
If you've bought them right before this crash, yes, you have lost a lot of financial value, but that's temporary. And in fact, like Warren Buffett has said: We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful" This quote holds true in this case, inexperienced people are panicking right now, but experienced ones realize that now is the greatest time to buy. Why? Because though it might seems counter-intuitive to some people, you should buy cryptos, stocks, fiat currencies and so on, in the dip, then they've lost their value, rather than they have risen significantly, because you need to buy low and sell high to make real money.
And so all that's going on right now is that the prices are dropping and this creates and opportunity to buy cryptocurrencies at a low price, hold them and make a ton of money in time when they rise significantly. Hope this helps and let's all make a ton of money!