The Cryptocurrency Market has been a constant bloodbath these past few days. The current broadcast about China’s ban on Cryptocurrency Trading and ICOs greatly contributed to the declination of Crypto prices, specifically Bitcoin.
According to businessinsider.com, almost all bitcoin trading occurs in China, and it is needless to say how such news greatly affected the overall Cryptocurrency Market crash.
I can still remember how bitcoin surged up to $1,000 during last year’s first quarter mainly because of China’s adaption to Cryptocurrency. It continually hyped when Japan and other influential countries started embracing Cryptocurrency. From less than a thousand dollars at the beginning of January 2017, bitcoin nearly peaked $20,000 at the end of 2017. Now, the downtrend seems to be unstoppable due to huge sell-offs knocking the bitcoin price down.
Since midyear of 2017, I became a self-taught “Cryptocurrency trader” who lost almost all of my capital due to ineffective trading strategies. I encountered numerous minor and major dips of my investments, which pushed me to ride the tides. I learned to become an “emotionless trader” who just shrugs my shoulders off whenever I see huge red bars in my portfolio. For me, challenging phases like the current Crypto Market’s situation are pretty normal. After all, we are in a world where uncertainty could make either great profits or huge losses.
Cryptocurrency’s great volatility or unpredictability is inevitable, yet I believe having the right mindset and persistent discipline could lessen our virtual cries. The tips you are about to read are based on my personal perspective on how I managed to be less affected during this trying times. I hope this could help you as well, especially those Crypto newbies.
Diversify. Do not put all of your money to Cryptocurrency. I refrained from cashing in for Cryptocurrency investments when I learned about Steemit. Steemit has been giving me huge opportunity to increase my cash flow. Just like you, I spent for things I thought I couldn’t afford using my Steemit earnings, but I made sure I only spent less than half of my overall proceeds to reward myself and to treat my family and friends. I used the other portion of my earnings to invest not just in Crypto trading but also in investments outside the Crypto World. I also saved a significant amount of cash for emergency cases.
I bet some of us here have pre-calculated our Steemit earnings relative when SBD and Steem prices were on their peak price stages, which eventually caused the tug of war whether to cash out or to wait for a little while for SBD and Steem’s price to go higher. But then a sudden crash like this happened and all of your Cryptos are either stucked in your virtual wallets or got locked up in the red sea of Crypto Trading. This will eventually lead you to forget the idea of holding on for dear life which will cause selling at a great loss since your bills are already slamming your face to get paid.
“I should’ve cashed out before the great dip.” I know that’s what most of us are thinking right now. What if you cashed out, saved some for the “red days”, and diversified your financial portfolio? Will that lessen your virtual cries? I believe so.
Never borrow money to buy Cryptocurrencies. Never. Ever. I believe this is a great time to buy when Cryptos are on their Christmas sale. Bitcoin’s price has been tested multiple times already. What goes down must come up, that is what bitcoin’s historical chart suggests, but we have to be wise in catching entry points. Dips could go deeper dips, and that’s the very reason why you should never borrow or loan money just to ride the wave of “buying low”. No one knows when will the bloodbath subsides. Always bear in mind that you should only invest what you are willing to lose.
Enjoy life outside the Crypto World. If seeing those reds are causing you too many stresses and heartaches, then it is best to detach yourself from looking at your alienated portfolio and just enjoy the life outdoors. Laugh with your friends (who are also in great loss), travel places you’ve never been to, reunite with your families, or find that missing Valentino/Valentina. Your physical and virtual wallets might be on their reds but your unforgettable memories will grow green. Green for positivity (:
If you’ll ask me until when this dip should continue or is there still a chance for bitcoin to go up again? My answer would be “I don’t know”. As what I’ve said, Cryptocurrency is full of uncertainties, but I hope the abovementioned tips will make you a wiser Cryptocurrency holder/investor to make yourself prepared during this tough times.
Looking forward to see the greener days with you,
