The crypto market has been sideways mostly and has had another dip. Some people are panicking and wondering what to do. Especially, since it has been heading back upward. It is interesting to see how people react when dips happen. Here some things to think about if you see the market go down.
1.) Hopefully, you are investing money that you can afford to lose. So, you can "detach" a bit from the ups and downs of the marketplace. Look at it as,”If I hold this may go up and do well but if it does not, I’ll still live, so why not wait and see because it could pay off exponentially.”
2.) The great part about cryptos is the volatility and speed at which they move, but it can feel like a double edged sword because big spikes come with drastic falls. Most assets or markets don’t see a 50% increase, then, maybe a 25-30% decrease the next day. So, just keep in mind that there are traders and people buying and selling in the marketplace. Some traders sell after 30-40% profit even if it may go higher. They would rather take profit and re-buy and sell again later because they know there will be more swings. If you are trying to buy and hold, don’t worry and panic sell just because something goes down.
3.) It is highly highly unlikely that cryptos or an individual crypto will go completely to 0. So, wait..and it will likely recover. Even Bitcoin has had massive dips before. There are no guarantees in life, but the crypto market has a lot going it its favor and it is very unlikely that it would just “end.” So, it will simply take patience as the marketplace grows and expands.
4.) If you watch the market cap, you can see if the market is simply selling off or if individual coins are selling off for other coins. For example, recently the market cap has gone down and is slowly trending back up, but we have also seen when there was a Bitcoin fork, where the alt coins go down a lot while Bitcoin goes up.
5.) Buy the dips. It has become cliche, but there is still truth in it. Then, if the coins go back to the previous highs or higher, buying on a dip is like an extra "insurance" in case it takes some time to go back up. When BTC dropped towards $5k shortly the other week, you’d be up already and perhaps be in a nice position for the push up towards $20k.
6.) Change your strategy and diversify your potential. If you’ve just been sitting on Bitcoin, maybe it is time to diversify. Or maybe you should try some ICO’s with potential that may have more chance for higher returns than sitting in a sideways market for months. You don’t have get into every alt and ICO out there, but spread across the top 10-20.
The biggest thing to remember is patience and to not let the whims of the market control your emotions to the point where you may sell early or buy late. Only invest what you can afford to lose, which is goes for any type of higher risk investing.