Crypto Collapse, the sky is falling! So.. what DO you do in times like this?
The million dollar question
Today I got a text from a friend who, like me, has found himself heavily invested in cryptocurrency. He was (understandably) a bit shook up about the sudden dip in the market that is wiping off thousands of dollars from the value in his portfolio each hour. We went back and forth a little bit on text and he asked me the question that prompted this post,
What do you do in times like this?
Before I answer his question I think it's important to understand where my mind is at. Even though you and I may encounter the same challenges or opportunities, the likelihood is that we'll view them with completely different lenses.
May I go back to June?
When I look at the 'value' leaking out of my portfolio in the last few days, I am reminded vividly of events at the beginning of June. On the first of June I had a meeting with my boss. I remember at one point, ahead of the meeting, glancing at the value of my crypto-portfolio on my phone. I remember this because exactly a week later, in another meeting with my boss, I glanced at my portfolio again. It had doubled in a week. In one week, 100% gains. It was the highest value my portfolio had ever been.
I didn't do anything special that week for my investments to reach such lofty heights. Hell, the Crypto market didn't do anything special. For no reason other than speculation the value of crypto holdings doubled. I was sitting on a pretty penny.
No quid pro quo
While it's a fantastic feeling to see an asset go up in value, I find it very difficult to become emotional invested into something to which I've provided very little effort or value in return. Don't get me wrong. I LOVE gains. It is fun to see investments move in the right direction. I also like to think I try as diligently as possible to protect my investments. That I had done something intellectual to deserve my returns. However emotionally, I'm not wedded to the value of my assets. Particularly crypto assets. Because by their very nature, cryptocurrencies are volatile. They swing wildly up and swing just as wildly down.
No stranger to mood swings
I'm used to volatile. As a child I was forced to deal with volatility, real volatility on an almost daily basis. Paper asset volatility is child's play to be honest. My natural response to volatility, is calmness. If I see a volatile person, I'll keep a watching brief while they go on their ride and respond according. Under no circumstances will I be taken along with them. I try to take the same approach to crypto. Watch it move, act accordingly however I try not to internalise the 'gains' or the 'losses'. They are very fickle.
Fun first
I guess part of the reason is that relaxed either way about market volatility is, I'm very clear on why I'm into cryptocurrency. First and foremost, I'm into cryptocurrency because it is fun. A geeky kind of fun. But fun nevertheless. If I can make money while having fun, that's perfect.
However what I don't want to do, is make cryptocurrency 'work'. Stressing over losses feels like work. And I have worked my fair share of jobs for a long time now. I don't want cryptocurrency to be a second job. I want to change that paradigm with cryptocurrency, not re-create it.
Go big or go home
The second reason is... to the extent that I'm into cryptocurrency for the money, I'm in it for life-changing money. Everyone's goal is different. I'm not looking to earn enough for a deposit on a house, then cash out, leave crypto and spend 25 years working to pay off a mortgage.
Whilst I may take small profits, I'm only interested in cashing out substantial amounts of money, if those sums will radically change my life. Else, I'll stick with investing and re-investing in a technology that could revolutionise the way we live. Because when it comes to crypto, it's all or nothing for me. I want it all... and if I don't get it all I'm already reconciled with the fact I could blow half of it in return for nothing should the volatile crypto-market implode.
Pick your poison
So back to my friend's question,
What do you do in times like this?
My answer is simple. I wait.
I either wait for the market to crash low enough for me to buy more. Or wait for it to rise high enough for me to continue taking small profits or cash out a life-changing amount.
Meanwhile... Play hard!
In the meantime, I eat, drink and be merry... enjoy life! And with these little three to keep me on my toes - it's hard not to!
Go big or go home. I like this one. Great post.
Thank you @nanzo-scoop for your interesting point of view on the crypto market. I personally ejoyed how you related the volatility of the markets to a volatile person in your life and just as they tried to bring you emotions on the same rollercoaster you stood back and watched. That is some very powerful information and I am happy you were and hopefully still are able to do this. As most of us, including myself st times, can get swept up in others emotional rides. I also feel very similar with the all in or nothing mentality. I am here to change the world and how I operate within it, not just continue this way with a bit more stuff. Keep dreaming, keep pushing, keep working and the universe will manifest it for you! Great post again. Looking forward for more
Agreed! Keep pushing!
in 2017-03-12 the value of my account, all of which I got from posting, voting and commenting (no buy in)
was $753
Today it is $11,911
but wait...there's more.
I recently bought a boat, paid the rent, bought some tools, bought cigars, beer, booze, went out to eat at nice places ..twice...with friends and relatives (I paid for it from my earnings on steem)...and I still have a nice chunk of change in savings($$)...
...
so why do I feel down?
...
the reason?
at the peak...my account was at $30 grand.
...
my ROI (return on investment) is infinity.
I've invested NOTHING but my time.
which if I hadn't been on Steem...
I'd have been doing the
SAME EXACT THING
on Facebook
...
odd isn't it?
You are living a great life. You gain a valuble asset from your thought process and canhave fun w it ! Yay you!
Ha, God Bless TEXAS
Well congrats on a major success really.
No need to feel down,
when i do
i remind myself
;)
best of luck!
good point.
thank you.
I hope to be dropping some cash like that some day.
That's awesome!
High five sir, high five! :)
That's just some boss stuff right there 💪🏼🙌🏼💯
@stackin I agree! :D
In the time like this I try to do something with my hands to keep them busy, just like playing the guitar or crocheting, so I wouldn't be able to accidentally sell all my cryptos lol
Lol... good move. Hence the reason I have my hands full with the three kids!
Wow this is one of the best posts I've read about investing in the crypto market. I totally understand your perspective on this stuff. My entry into this world started at the peak after the first week in June, so I'm kinda hoping it crashes and creates a great buying opportunity for me to put in a good chunk to hold long term. No interest in day trading this and dealing with that stress. Thank you for sharing your thought process.
My Mannnn @nanzo-scoop... you couldn't of broken it down any better! Play Hard!
UPVOTED and Resteemed!
There's been a lot of posts about the recent market correction, but I really appreciate your perspective. Your words convey wisdom. Old Ben Graham said, “In the short run, the market is a voting machine, but in the long run it is a weighing machine.” Those who can stay the course and not let emotion govern their investing decisions will reap the rewards. Most traders have a rather short life span, but investors grow old with their holdings.
While I'm still fairly new to crypto, I do relate to your feelings of it being enjoyable. That's admirable. I get much more joy from the small amount of money I've invested in crypto than my more traditional holdings. They're on autopilot. I visit them twice per year and makes adjustments as needed, which is usually only in the tech sector. Not much fun. Crypto has an organic feel to it and it's newness requires much learning, which is fun to do.
The smile in the picture says it all though, b/c you're holding in your arms all you need to be the happiest man on earth! As a father of 3 beautiful girls myself, I can definitely relate. Great post my friend! Cheers and Re-Steemed
Thanks an uplifting and proactive post at a time its tempting to feel disappointed - with a great family photo showing what's really important in life. UPVOTED YOU.
What, there's a collapse?! Am I seeing you in Steemfest this year? :D
I hope so! Still trying to free up my calendar.
@naanzo-scoop, cute girls you have there. This is the best post I've seen in regards to what's happening to cryptos now. All the people I introduced to steemit have been asking me what's happening to their accounts.
Thanks for this well though out update.