Last week, the cryptocurrency market experienced what some people would call a bloodbath. With the price of most cryptocurrencies experiencing a huge dip. Bitcoin, for example, went all the way to $5,303.74 over a 48-hour period. Hitting its lowest price this year.
When market movements like this happen there a lot of discussion regarding what you should do; buy, sell, hold or ignore everything. I asked a couple of people what they thought about the price surge and here’s what some of them said:
The Observer
I work in the treasury department of a bank. We regularly monitor the market movement of cryptocurrency (majorly Bitcoin), although the central bank doesn’t allow us to invest in it. We try to understand how the cryptocurrency market operates, in case, the central bank declares it a recognised asset, so we are ready to get in if that happens. Till then I remain a keen observer of the market.
The Optimist Hodler
I invested in cryptocurrency a while back. Yes, I have made gains and losses. I hold about 5 different cryptocurrency assets but most of my holdings are in Bitcoin (BTC).
During the dip that started on last week, I remained calm. Although, I paid more attention to the market than I usually would. I am waiting for BTC to touch $10,000 again before taking any action. I believe that if it crosses $7,000, it would rise to $10,000. I am convinced that we are now in a bull market after a two-year-long bear market.
The Once upon a time investor
I invested in Bitcoin and sold all my holdings in January 2018. No, I didn’t make a loss; I made a tidy sum.
Why don’t I hold any cryptocurrency? Well, my financial responsibilities have increased over the past couple of months so I can’t afford to take the risks I used to take before. For now, I am sceptical about cryptocurrencies until I am sure it’s a bankable asset.
The Active Trader
I am in the business of buying and selling cryptocurrency, that’s all I do all day and every day. Last week’s price dump were no surprise. Anyone who follows my WhatsApp stories would know that I predicted that the market was set to become bearish. As always when the prices dip like that I buy more.
What made me start buying and selling cryptocurrency? I believe in its fundamentals. It might take time for adoption to be widespread but I know that it will happen. Cryptocurrency is more than just a trend to jump on, it is the future that the next generation of financial systems will be built on.
The Crypto Pessimist
It is an unregulated instrument. I know a few businesses accept it as payment. As for me and my household, we will watch and see. I prefer the safety of the current financial system. Once a couple of traditional institutions are behind it, I might have a rethink.
The Businessman
I am a Nigerian with business partners in different countries. Sometimes doing business with my partners using the existing way can be frustrating, especially when I need to make a quick transaction.
When I do business with some of my partners, I tend to use cryptocurrency because the transaction time is much shorter. I mean it can take less than 15 minutes for my partners in Japan to receive value for the goods I need from them and I pay less in transaction fees.
When the price dump happened I wasn’t concerned. As I currently only have holdings in a stable coin. I am mostly interested in using cryptocurrency to conduct my business transactions faster and cheaper.
The guy with FOMO (Fear of Missing out)
When I saw the dip, I was not sure whether to buy. I didn’t want to risk buying, and the price drops further, then I make a loss. I also don’t want to miss out on the action.
Why do I want to invest in it? Well, I see it as an avenue to diversify my investments. I currently invest in mutual funds and in some agricultural startups. So, I see no reason why cryptocurrency can’t be an additional asset class for me. Especially if I can gain more money by buying at the right price and selling when the price goes up. Although, I am never sure the best time to buy
If you are like the guy with FOMO, you might want to watch out for my next post about tips on how to invest in cryptocurrency.
When the price of cryptocurrency dipped, what was your reaction and what action did you take? Drop your responses in the comments.