If you are walking in the forest, a bear attack can be unpredictable and we could also say that the same thing happens in the cryptocurrency market. But This situation is a bit insane, When I woke up today and turned on my phone, I kept reading statements and news that talked about a big correction or fall in the price of cryptocurrencies, and although for a moment I thought that this would not affect Leo finance and its tokens, but sooner rather than later I realized that panic also invaded Leo finance and the price of LEO went from almost $0. 90 to $0.45 and although the price has recovered to $0.51 I could see that when the bear attacks, a feeling of desperation and fear invades, that is why I want to give some recommendations promoted by the leading lions of leo finance that will help you to know what to do when the bearish bear attacks.
A down cycle, it's totally normal.
In all world markets, be it stocks, metals, currencies, property, everything absolutely everything has a down cycle eventually as they are governed by a universal supply and demand rationale, and as cryptocurrencies are also governed by the same concept of supply and demand it is totally normal for a cycle to happen where prices fall.
Although of course it is true that in the case of cryptocurrencies, it is a much more volatile market than other investments. But when many people see that their money is in danger and that it is going to lose value they start to sell massively and when there is a lot of liquidation and supply but there is little demand the price starts to fall even more.
But ALWAYS keep in mind that if it falls it will go up again, because when there are many people selling cheaply others start to buy large quantities at a low price and the price stabilizes and starts to rise again.
Don't give in to FOMO.
FOMO or also Fear Of Missing Out, is a very frequent feeling in the stock market but it is also seen in cryptocurrencies because when the prisoner begins to rise people who give in to FOMO, believe that they are missing out on something and buy the price very high, but lose when the price begins to fall.
But in the case of when there is a down cycle, those who give in to the FOMO are those who for fear of losing all their money and their investment sell in a hurry so as not to have more losses. But doing this has more disadvantages than advantages, since markets change quickly and we have seen that when there is a correction in the price of bitcoin and it goes down more than $5000 everyone starts to sell, then there comes a point when it stabilizes and suddenly goes up $15K or more and those who got desperate and gave in to the FOMO lost a great opportunity.
But I want to clarify that you are the one who makes the final decision about your investments, because even though you can find good advice it is you who decides what to do, always remember that markets are very changeable and what may be going down suddenly today tomorrow may have a major rally and reach record highs so it is always good to analyze the markets, charts and statistics before making a hasty decision that you will regret later.
NO, NO, DO NOT watch or read the news.
This is serious, Don't read the news as it will mainly expose the exaggerated weaknesses of cryptocurrencies and you can slowly give in to FOMO. For example on a well known cryptocurrency news portal that usually has good news about tokens, record highs, de-fi. It was totally flooded with BAD NEWS which obviously we know comes mainly from different governments or financial institutions towards cryptocurrencies.
They were just talking about how bad investment cryptocurrencies are because of their high volatility, that it was a failure, that it was criminals' money and that it had been used to finance the creation of the covid-19 virus (this is an exaggeration) in short Thousands of negative and even lying things about cryptocurrencies and even though when all those bad news started to come out the price was rising, people pay more attention to those bad news instead of checking the charts and the good numbers of the market.
That's why in the middle of a bearish cycle like the one we saw today and yesterday avoid the news completely as they are people who know nothing about it and just want to generate ratings, no matter what they talk about.
Despite the fact that everything is going down "ALWAYS HODL!"
Of course this can be very difficult, because as I mentioned before If you have invested your life savings AND you start to see how the price suddenly drops because like any other bad business you will leave it immediately, but as I also said remember that this if it has a down cycle has also an up cycle. And the truth is that in the last year and in these two months of 2021 we have seen that cryptocurrencies have had a greater bullish cycle than bearish, as you can count the times that the bear woke up and started to attack but there are countless times that the bull has been victorious so do not be discouraged at this time and always remember to stay HODL.
Another piece of advice I can give you based on my experience (although I don't put it into practice yet), is to try to have other sources of income in addition to this, or that leo finance and Hive is not your main livelihood as at a time like this you won't be desperate like me.
Use the bear attack to your advantage.
If you are a person who looks for opportunities in the midst of calamities, then you must agree with me that a bearish cycle rather than a bad situation is the most perfect time to buy at a gift price.
Since many people seeing that big whales start to liquidate what they had in different types of cryptocurrencies and the market starts to fall, and in order not to lose their money they start to sell desperately and this creates a sharp downtrend and in the end you can find yourself with really cheap prices and adapted to you. For example there are many altcoins that went down in price quickly, but in a bullish cycle they tend to rise up to 400% in just a few hours or weeks, that's why bearish cycles are perfect opportunities to fish in a turbulent sea full of big fish. And when the bear cycle ends, you'll see big gains.
So remember that if you put this into practice and keep it in mind whenever there is a very sharp bearish cycle, you will be the one who wins. So always remember that bearish and bullish cycles are normal in all types of business not only in cryptocurrencies, also do not give in to FOMO and despair and to do so avoid all types of news because as I said they only want to generate audience and they will always put the worst of every situation, Finally stay HODL as long as you can and you will see great profits when the bullish cycle arrives and you can also take advantage of the bearish cycle to buy at a good price and sell it when it reaches historical highs, although you can also choose to keep it and wait for it to continue rising.