Bitcoin went down to sub-12K dollars again today plunging several hundred dollars from yesterday's bull-run value that almost had reached $12,500 per BTC and as we can see at the charts it is just a normal price movement as people or crypto traders just cashed-out or took profit from their gains following yesterday's short run-up.
There is nothing to worry about because volatility is the name of the game here because it is also a given fact that there are entities out there that can take profit massively and cause the markets to plunge for a while like in this case for Bitcoin.
Also for me it would not be as exciting as ever if the price movement is just flat-lining and there isn't much any price fluctuations where in that case only traders with big money can make use of it. But with these price volatility we have to look at it at a different prospective because it really is another opportunity for some people who are wishing for a cheaper price to come back, so here is your chance to grab relatively cheaper cryptos at your disposal.
Sometimes traders are affected by their emotions, if they sees a coin going down the one thing they would think is not to touch it and go for the ones that are mooning. That is what we can call chasing a coin, that is really very risky in terms of day-trading because you might buy in at the top and wait until it would go further up only to realize when you turn your head a second that the coin value had dropped leaving you a heavy bag of coins.
Image by Gerd Altmann from Pixabay
Then after that what you will do after you realized that you are in a seemingly unfortunate circumstance you will then sell your bag of coins for a loss and then chase another coin in the hope that you will recover your losses only to find yourself again in the same situation as before.
That is why we do have to carefully do our due diligence and search and educate ourselves in order for us to avoid losing money because this is the cryptocurrency world where only you alone is the sole responsible for your acts. In many instances when you make a mistake it is as always your own fault. There is no margin of error especially where you put your cryptos whether it is to an exchange, a website, a hardware wallet, another wallet address or wherever.
Personally I will just buy bitcoin and never trade it because you will never know if bitcoin would take-off and leave you with a stable coin or whatever coin you supposedly hedge it from like what happened in many BTC holders back then after Bitcoin had a run-up to previous prices and then never came back to that price level again. If you have BTC now you have more chances that you will profit by just simply holding it to be used in a later time when the price is where you are wanting it to be.
Disclaimer:
All the statements made here by the author is just from his own point of view and opinion and should never be taken as facts. Please do your own diligence and research before venturing in a highly volatile financial instruments like cryptocurrencies.