Hi steemians !
These two past days, my wallet cryptocurrency is down more than 20% ! My wallet is down almost 50% ! However i remain very calm ! and i like in this post to share with you 4 tips to enjoy during a phase crash on cryptocurrency !
Tip number one
It's not to panic ! I know it may sound like a lot more difficult to do than to say especially when we see a page such as on coinmarketcap we see that red everywhere and that our portfolio is down, however it is very important to stay calm and not to panic, if you're stressed and you can not even get longer to sleep because your portfolio is down is because this mean one thing, is that you have too much invested in the cryptocurrency ! Cryptocurrency is very volatile and risky, so if you couldn't sleep and you stressed because there is a crash on the market ? is that you are not comfortable with the amount that you have invested in this assets.
Tip number two
get ready for a total loss !!! I'm not saying that the cryptocurrency is going fall back to zero or that bitcoin only worth a few dollars or the others worth a few dollars just in one weeks or in the coming months !? but this is a risky investment, much risky than for example actions and commodities, you say that the money invested in this market is a money that can potentially losing a lot of his value, because cryptocurrency is a young people of technology. It's very volatile, we don't know for sure if it will have a lot of success or not ? in many years so that's preparing yourself for a possibly disaster scenario ! or a scenario in which you will have a near total loss of your capital !!!
Although I think of course that this is very unlikely to happen !!!
Tip number three
Buy the drops !
You will hear that very often in the stock market in the crypto market too, buy the drop especially if you are a long-term. If you're an investor who believed in the technology of the blockchain and cryptocurrency in long-term your wallet will be much more successful, you will be much more profitable if you buy during the down phases.
So what do I mean by a drop phase and well it's like we've as we have these during reed days,declines and double-digit declines, a small drop days by 3, 4 or 5% that's it it's not really what I call a strong correction of corrections, these last two days it's sharp declines that presents very good buying opportunities on many currency.
For long-term investors when we are at long term i often say do not buy not the bubble, buy the crash ! that's so you want to invest in the long term do not buy to the tops ! buy when the market folds, buy crash do not buy the bubble so watch out for the markets these days ago a lot of crypto currency that come back on very levels interesting to get back long term .
Tip number four
Instruct you and develop your knowledge !!
There are a lot of people who have invested in bitcoin and cryptocurrency purely for financial interest !! because they had read in the media that here is the bitcoin had made x 23 on the year of 2017 and so they bought like that to the blind of bitcoin in thinking that they too can benefit from this sharp rise, however they do not know the technology behind the bitcoin, they do not know the technology or corporate projects behind different crypto!!! today these people here are panic because they do not necessarily trust the long lived crypto and so these are people who panic easily :) and so who who sells from the first signs of crash, so i tell you this trick is very very important, it is instruct you develop your knowledge on different cryptocurrency in order to really know what is the project and the technology behind this cryptocurrency and make you an opinion. I actually trust in the crypto, this cryptocurrency out or his project for the long term and if so if you are like me ;) and that you really think that technology behind cryptocurrency will be successful long-term ? Well !! here you will not impact emotionally by a crash like we can see it these last two days, because you really believe in project and the technology has its long-term usefulness.
So it's very important !! do not invest in the cryptocurrency just for financial interest ! also learn about the projects behind, so that here you really believe and therefore you are not impact during the crashes.
Personally I think there is nothing dramatic behind the crash that we have in these last two days the cryptocurrency, is perhaps an asset different from the actions, however the psychology of the actors behind and it's simply the psychology of the human being that is the same as we speak of shares or cryptocurrency so it is normal and inevitable to have strong phase of correction. However those who panic during these phases of correction, it is the first to bite the fingers when there are phases of recovery behind rebound phases and here we go beyond the levels at which levels previously reached !!!
So do not panic follow these tips,
- Did not invest too much money in the cryptos and that men sums with which you are comfortable.
- Buy the phases of decline.
- Take advantage of it to refuel trip toman is especially if you are a long-term investor and especially if you believe in crypto, this is important...
- Believe in the project at long-term it must be knowledgeable and educated on this cryptocurrency, on this technology and the project behind
Finally I wanted to show you this curve that represents a price evolution, a scenario of the evolution of the price on cryptocurrency but in the long run it makes the "Crypto J-Curve"
So as we see, on the launch of a cryptocurrency at the beginning we have a very strong phase of increase ! Which is here is the greed to speculate on this currency, also what is called the hype here is that that is the greed of investors for this Cryptocurrency, because all says there is a new project that has just come out that could in the long run be very successful, so people here is interested and seeks to appropriate this crypto controllers. So we have a strong upward phase.
Then over time there is not yet a concrete project these are just projects but there is nothing materialize yet, nothing concrete, so here we have some of the people investors who take a big chunk ;) of their profits knowing this is a rise stops. First parties take their profits, a second wave of investors take their profits which leads to a decline, then here we have a phase of stagnation because there is nothing in itself. On the market there is not necessarily new concerning the development of this pace, not new necessarily positive or negative concerning the development of the project so here we have a phase of stagnation that can last for months or years !!!
However when the project the real projects behind the cryptocurrency materialize takes shape and so the crypto lead finally has a real usefulness in the long term :) and here we have a return of investors who see there this time want to invest in a concrete project, a viable project and so that has a lot of utility, enormously demand and so that's how we have strong increases after long-term.
But these phases can last years of curves such as those we've already had on many cryptocurrency like bitcoin elsewhere and that's it can also apply a lot of cryptocurrency !! That's why it's necessary really invest in projects that we believe in long-term projects that we think will really have a viable business in the long term.
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