Foreword
I only truly got into crypto this year. So you can say I'm veeeeeeery late to the game. I'm also very lacking in knowledge so if any experienced Hivers wish to correct some misunderstandings or inaccuracies in my post, I welcome and appreciate it.
As a result of my late arrival and lack of prior knowledge, I feel a very strange ambivalence when I see the price crash.
Generally though, this post is for other newbies going through a panic. Here's how I see things from my perspective ...
On the one hand (the bad):
Since before this year, I believed the crypto had no legs to stand on, I was expecting crypto to "pop" (believing it was a bubble) for years. +100%, +200%, +300%... it's gonna pop any second!
Well... it hasn't and after learning more about the principles of crypto, I've changed my mindset. Yes, this correction sucks, but look at the say, year graph.
Hardly a dent, really. Not even the lowest we've been this year. Yet because I got in so late, it hurts to see actual losses (despite thinking that I'm smart for buying the previous dip beginning of the month).
When I bought Loopring at dirt-cheap (it was a gamble, so no big $$$ to speak of) and saw 1000% profit, I didn't panic when that dropped to 600%. Whereas my Litecoin which I legitimately invested, is at a 20% loss. Feelsbadman.jpg. I won't lie, I always have a moment of self-doubt when I buy more after a sharp crash ("is this the beginning of the end and did I just buy a ticket to a sinking ship?")
This was also a far larger sum, so the 20% loss in "legit investments" is far larger than my 200-300-400% victories in random altcoins that I just gambled at random to see what would stick.
On the other hand (the good):
Getting into crypto when the prices are crashing? Thank the gods! I absolutely HATE getting on a rollercoaster on its way up. It's almost inevitable that there will be drops that will make me groan and think "couldn't I just wait?!?!" (note that I kept waiting for such a crash for years and the prices just kept going up, so it's a Catch 22)
At the end of the day, I remember that like said, the point here is not to cash out now, but to invest for the future. So I'm "staking" for something I'll hopefully see the fruits of in 5, 10 (or more?) years.
Remember the bigger picture and the "alternative"
Something that keeps me sane when crypto crashes, is to remember what I saw in this video:
It's specifically about the scam that is ETNs, but I feel that this should resonate with fiat as well.
(skip to 14:15 if you can't be bothered to see a long video)
The TL;DR point is that these ETNs are by design supposed to drop in value to 0. Whenever crypto gets a punch, I remember this graph:
So, if you invested X $ in 1990 (say, your pension) you need to make a whopping 100% profit JUST TO STAY EVEN. So if you made a glorious 400% profit, it's actually 200%. Now compare that to the long-term gains in crypto. 400% is something coins can get in a good year, not 30.
I tried to look up what are "normal" expected rates of return from pension funds, and if this post can be believed, then asset investments barely keep up with inflation over time (of course this depends on the wisdom of your investment picks).
The value of staking and staking returns in crypto (the beautiful)
Remember that crypto is not just its value in fiat (this is something I struggle to remember). There are multitudes of savings programs that pay you very lucrative APYs in the respective cryptos, allowing for cumulative interest.
Binance has a dizzying amount of options - after reading up on a few, I decided to try out several investments strategies on the platform with relatively "safe" sums, just to try out the arena and find out what's riskier, volatile, profitable, etc.
In a more stable manner, one can use a platform like BlockFi. (Thank you for the recommendation)
You mean I get paid in my crypto of choice by just hodling, which I plan to do anyway?? Hell yea, sign me up!
- Mind that other than BTC and LTC, all coins are on the Ethereum network - so if the fees there bother you, note that your options are limited.
In conclusion
I'm going to buy up what I can - I see today as a discount, and plan to invest an amount I'm willing to put aside for years to come.
Hoping it's the right decision to make :)
Thanks for reading, wonderful people