It is nearly impossible not to have a moment of panic every time there is a cryptocurrency blood bath. Whether you are new to cryptocurrencies or not. What if we were all wrong about cryptocurrencies? What if there is a bubble and its bursting now? Questions like these can keep you up until 4 in the morning when Blockfolio shows that your portfolio is down by 50% or even more. There is some good and some bad news. This is not the first time cryptos are bleeding and it will not be the last. To prevent more sleepless nights in the future, we have the best advice for surviving a cryptocurrency blood bath.
Why are alt coins bleeding?
There can be numerous reasons why alt coins find themselves in a blood bath. Blood on the streets is normally an indication of news from Asia. The reason for the current blood bath is due to China’s Lunar New Year during which time China is taking a break. Investors may be using profits to pay for the holiday. There was also news about South Korea possibly looking at shutting down Bitcoin exchanges and China banning Bitcoin mining. This is however, not all bad news. As now is the time to buy, buy, buy!
What is the best advice for surviving a cryptocurrency blood bath?
Think of this period in the same way as you do of a sale at your favourite store. Why pay more for an item if you don’t have to, right?
According to crypto analyst, Michael Suppoman, these quality coins are currently (16 January 2018) available at knock-down prices:
- Quantstamp is down 68% from its all-time high of 83c and is now on sale for only 27c.
- Ethos is currently selling for $4.46. That is a sale price of 61% from its all-time high of $11.35.
- Bitdegree is marked down 61%. It was 58c and you can now scoop it up for 23c. What a bargain!
The only way to make money in the crypto world is to buy low and sell high. These blood bath days present the perfect opportunity to either top up on your favourite coins or to invest in other coins you have been dying to get in on. Remember that every coin that goes down, will go up eventually and vice versa. “healthy correction” is a good way to refer to these red days. Especially after the enormous gains made by crypto investors over the Christmas period. It is unrealistic to think that cryptocurrencies can continue going up in value without a healthy correction taking place at some stage.
In the meantime…
Whilst cryptocurrencies are bleeding and some investors are losing their heads, it is the wise investor who will keep themselves busy until the storm has passed. This too shall pass!
Stop staring at the charts
Staying glued to your PC or cellphone screen will not magically turn the red chart green. It may only make you depressed to see your portfolio losing half of its value and quite frankly, is a waste of time. Put your phone down, shut down your PC and don’t think about it.
Avoid crypto chat groups
Majority of these crypto chat groups are filled with newbies who have never experienced a blood bath. Due to inexperience, they may be posting comments or pictures that will only make you more depressed. Rather excuse yourself from these groups on Facebook, Twitter or Telegram and stay positive.
Find inner peace
History tends to repeat itself. If you need some assurance that your portfolio will turn around soon, have a look at historical charts of Bitcoin, for example. The situation will turn around shortly and you will soon realise that this is no secluded event.
Hold On For Dear Life (HODL) is widely used amongst the crypto community and is especially true during these times. Instead of panicking, why don’t you take the talk for a walk, binge-watch a series on Showmax, take your wife out for dinner or go on a cruise? It is a good idea to take a break from cryptocurrencies during this time and catch up with some other work or work on your tan. Before you know it, you will be up trading at all hours of the night again, making a killing.
If you are in cryptocurrencies for the long run, it is important to remember that the prices will fluctuate. Since you are in this game for the long haul, you will reap the benefits.