The Market Is Crashing, Don't Panic, Be Prepared To Benefit From It!
The cryptocurrency market is extremely volatile compared to other markets. This is very normal for a nascent market. So, don't panic and learn how to benefit from it, instead.
High Risk, ...
There are so many reasons for this high volatility in cryptocurrencies:
- Regulations change every day (Think: SEC, China).
- New technologies emerge (Think Lightning Network).
- Exchanges get created, sold, and hacked (Think Poloniex, Binance)
- Liquidity is so little (Think pump and dump groups).
- and so on ...
That is why it is considered to be a high-risk investment. Therefore, you should only invest what you are willing to lose! I am sure you have heard this so many times but did you really listen?! This is very important.
If you are investing your life-saving money, it would be more probable that you would be subject to market psychology. This will make you lose a lot of money. The following chart explains market psychology very well:
I have talked in more details about this in a previous post: Use Psychological Analysis, Not Technical Analysis.
But High-Rewards
It is true that cryptocurrencies are high-risk, but they are high-rewards too! Look at this chart:
Source
Number 10 on the list is Bitcoin, and it has a gain of 1,318%. That is definitely high-reward. But how can we benefit from such a market?
Do Not Panic, Benefit From The Opportunity
When the market starts to crash, do not panic. Instead, consider this as an opportunity. Use the market psychology to your benefit. For example, make a list of your 10 best cryptocurrencies. Write down your dream-price for each one of them. Remember when Steem hit $7.30, and you were saying: I wish I had bought more when it was $2? Well, now you have a chance to do so.
When you are done with your list, go to your favorite exchange and put buy-orders with those prices. In many cases, the price spikes down for some few minutes (or even seconds) and your orders get executed.
What Is Your Top-Ten Cryptos?
So, what are your top-ten cryptocurrencies and what is your dream price for them? Please share with us in the comments.
I keep telling to the people that cryptocurrencies are undervalued compared to stock market thats has staggering $73 trillion of value.
Thank you, @cortexx.
I don't think it is right to compare stocks with cryptocurrencies. When you buy stocks, you actually own a share of the company, but when you buy a coin, you don't. So, the market cap of a crypto project should not be compared to the market cap. of a company. They are different.
Blockchain is changing the world, it will allow 2,5 billion people to have acces to a self phone, a bank acount, an insurance and the most important a total freedom of speech online. I feel like we are gonna see some revolutions in the next years around the world. That sounds exciting ! Stocks just allow rich to stay rich and multinational to get bigger.
At every crash its a buying opportunity for everybody go for it
Every market crash is an opportunity to profit later. I don't get why people don't realize that. There's no "straight graph" guys! Come on!
exactly!
Lol...there is no better way to put it than you just mentioned, there is definitely no straight graph and the path to success is certainly uneven.
Nice one @gvincentjosephm
My top 10 will be:
BTC
LTC
ETC
NEO
DASH
ZCASH
BCH
STEEM
LUN
DNT
Great idea to remove the depression.... cryto-currency must be benifited to all if we know the trick...
thank you sir,@sadekj..
@upvoted @resteem
What happen why we have blood bath today... I heard no issue today and negative news about crypto.
There is no real reason. But this might be the trigger.
The dip is always the right time to buy and enjoy the rise later
Yes. That is true!
We need more people - me included to keep posting. Steemians keep calm. Do not sell your coins unless you desperately need money.
I also think whoever is coming into the crypto space must be enlightened on the benefits and the fundamental reasons behind these cryptocurencies and the desire to make money from it will then follow nicely and unshakable regardless of negative impact
Thanks for the reassurance. I'm new so it is odd it keeps dropping. Thanks for the explanation.
Janice
If you are new, I strongly suggest that you invest some time in learning before you invest money.