If you’ve been in the crypto space long enough then you’ll agree that the path to success is a bumpy one, and the market has taken a lot of us for a ride. In December when Bitcoin set a new ATH every day and week, and finally hit $20k, it was as if there was no stopping this new tech. But then boom, it dropped, despite predictions that it was headed for $50k. And then came the enthusiast/experts who referred us to previous years to see the patterns.
We’ve had several predictions and so-called experts who have said that the bear market was over in the past, only for us to see a downward and then an upward movement. With all of these, let’s face it, it can become quite scary to invest in cryptocurrencies. The market is filled with so much FUD. This article will put to rest all your fears and help you better understand what is going on in the crypto market.
Why You Feel the Way You Do?
Think about how you were feeling when Bitcoin and other cryptocurrencies where on the rise – good, right? Several YouTubers were out making videos daily on how their picks had double or tripled their investments. And this is natural.
When the market goes up, people rally behind it – hype it, and claim it’s the future.
When the market goes down, we are not so sure anymore. We feel deceived, start losing confidence, and asking questions like ‘what if governments ban cryptos entirely?’
But as we already know, after every dip, the market rebounds stronger.
Here are some things you should know…
Corrections Happen All the Time
You should be scared if all a cryptocurrency does is go up in price. Corrections are a fundamental part of cryptocurrencies. So, before you get scared and think of selling or totally exiting the market, remember that pullbacks are a routine and it happens all the time, even in the stock market.
Never Overreact to Volatility
I am typing this with a grin on my face because I had overacted on multiple occasions – selling and then the price goes up by 10%, or FOMO in and then the price drops. In order to overcome this, always do your research. Once you are sure of a project, stick to it.
Offense is the Best Form of Defense
In the words of billionaire investor, Warren Buffet, when other investors are fearful, be greedy, and when they are greedy, be fearful. Although this is not easy, you’ll have to learn to.
Rather than be speculative and fearful during a correction or dip, it’s a good opportunity to buy. By doing this, you are building a portfolio that will allow you to sleep at night even when prices drop.
Never Invest What You Cannot Afford to Lose
This is a priceless piece of information. We’ve read about people selling their homes and cars to go all-in on cryptocurrencies. Never ever try this, or you may end up losing your mind.
In conclusion, in order to stay confident in the market, especially when it is down, you need to stop listening to so-called experts (there are so many of them), ignore the news, and stop checking your balances.