The Crypto dip.... what are you doing about it?
I spend a lot of time on 9-gag and there seems to be a war of words going on in there with two sides: People that are very much on the side of crypto and the side that is laughing at the crypto drop and calling the entire concept a Ponzi scheme.
Now I tend to think that the people that are laughing at / applauding / making fun of this dip are probably for the most part people that are jealous because they never got involved back when things were truly lucrative to those that HODL'd and this is how they deal with that internal struggle. At the end of the day it is 9-gag so you really shouldn't take anything that anyone says in there too seriously.
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I like this graph because for once, someone in the main stream media is actually showing the full picture. That little red box is the only part that most news is focusing on whereas I would say that most people that are on this platform likely got involved somewhere far on the left of this graph. Me, I got involved after the "crash" of 2017 and we all know how that recovery worked out.
I will readily admit that when I see the "candle" view on charts I don't even know what it means for the most part and I haven't put any effort into learning it either (if someone out there wants to give me a quick tutorial on that it would be appreciated.) My strategy as far as all crypto is concerned has been one of a long-term strategy and I will not panic sell during what is going on now. Am I disappointed that we have seen up to a 40% drop per coin in the past month? Of course I am! But at the same time despite not really understanding the markets I realized that the meteoric rise we have seen in the past 4-6 months was unsustainable. I keep hearing words like "market correction" and power players transitioning to stablecoins etc, but mostly I just HODL, I always have.
I do not know what is causing all of this nor do I feel like having that information would really benefit me in any way. I DO KNOW that because I got involved years ago my investments for the most part are still looking very very healthy. Also, while I am pessimistic about most things, I believe the market will rebound and the media will return to not talking about it once that happens. The traditional banking industry and the MSM work together, so they are always going to showcase the shortcomings just like when they tried to convince the masses that crypto is ONLY used for buying AK-47s and heroin.
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On a quick side note, the above image is taken from a blog that breaks down the origin of the word HODL... Here's a hint, it does NOT come from "hold on for dear life" as many people claim.
My strategy going forward is to do nothing. When I talk to my friends who are not at all involved in crypto they seem worried for me (the nice ones do) and there are some not-so-great friends that I know back in the states that message me to make fun of the fact that things are "crashing." I normally just respond with a 2 year chart of BTC or other assets and say something snarky like "yeah, I'm totally suffering over here."
I have no reason to cash out and honestly guys and girls, we have seen this before. The sky was falling and "crypto was dead!" back in 2017 already now wasn't it?
I personally know someone that panic sold a LOT of BTC back when the "crash" of 2017 was going on, and he is still kicking himself to this day over that selloff even though he made a tremendous amount of money when he sold at 18 to 20 thousand. He is one of the people that actually could have bought a Lambo.
So what is your strategy? Are you worried? Maybe I am just being overly optimistic but I have zero intention of selling, even if BTC and others drop to half of what they are currently sitting at. I didn't get involved in this just to bail once there is a tiny bleep of red in an otherwise consistently upward trajectory far outpacing inflation.
Thoughts?
I'm really not too worried. This is my 3rd time through one of these crazy cycles; 2013 when BTC passed $1000 for the first time and "the sky was the limit," before it dropped from $1150 to $210... then 2017/18 where we hit $20,000 and then back down to $3,000-ish... now this. I'm not even sure this is anything more than a "correction," although the timing was unfortunate, coinciding with the Chinese clampdown and the US regulators rattling their sabres.
Well we learn from history right and history has told us that crypto isn't going anywhere. I just don't know what is motivating so many people to continue to panic sell. It is all speculation on my part but I feel as though it is people that either don't understand anything about crypto or big organizations that diversified "regular" portfolios with crypto as well. Either way anyone that got involved more than 5 months ago is still on top in most situations and that is you and I and probably most of the other people on this site.
Most people I know enetered the market between 2016-2018, so actually reading this from you sounds quite interesting to me! Having the right perspective is so important, and it makes things to much easier to handle!
I remember buying Vechain tokens at $6 per piece in 2017. Then the price fell to $0.2, and during the bull run now, it reach almost $27 (in a way, this isn't completely true, because they change the token amount, meaning that if you bought one at $6, you suddenly got 100 worth $0,06 per piece). Now it is falling back, but still, if you are a long term holder, then you are safe onboard a ship heading in the right direction!
By the way, just quoted your entire comment in my newest article... it was so brilliant.
Selling? Nope- Nope.
Thinking about buying the dip?- Maybe ;)
But the dip-
Meme source- twitter
I think it all depends on how long you (or anyone else) had intended to be in this game for. When I decide to eventually sell it is going to be when I am much older. This was always meant to be a long game for me and therefore short-term changes don't really get me to panicked.
Indeed long term game is what I think too but investing frequently is good and selling few part at peak would help me to enjoy my investments as that one day might not come since life is uncertain.
I think everything may drop a little more, 26kUSD and maybe at a point between current date and 2024 we will see it reach 13500USD (That's what the candles per month say, maybe I'm reading it wrong), it's likely that between 2024 (next halving) and 2025 we will see it fly again maybe over 300kUSD, well it's the pattern that BTC has followed every 4 Years.
I particularly think of a rule. If you have 100 BTC and it is worth 60kUSD you have 6000KUSD (If you sell at that time), if the price drops to 30kUSD someone may think they are losing but in reality they still have 100BTC, so their assets are still intact.
Those who see a loss sell, then the price goes up and if they buy with the same amount they will have less BTC, those will really have lost, so it all depends on which side of the barrier you stand, but in the end time will level the scales for the patients.
if it does go down to 13.5 that would be disappointing but I recall not that long ago that we were really excited when it REACHED 13.5 so it wouldn't exactly be a new experience.
We are very close now. 😥
It's the media and something akin to a concerted attack on crypto from all angles.
The FUD started from Musk claiming Bitcoin is bad for the environment and then China banned Bitcoin for the one millionth time. That has become a recurring theme tbh.
The media and anti crypto people have taken advantage to shake out a lot of weak hands. However, in the process, the market is learning and the crypto class of 2021 will adjust to the situation and the market will get back stronger.
I guess I am greedy, so I have had a hard time selling tokens now during the bull run, but I have sold some, and my biggest challenge right now is when to buy more! HAve we reached the bottom yet, or will the prices fall more?
Since I am trusting the blockchain industry long-term, I am not worried at all... I just want to keep building, working, and to buy even more. So, that is my biggest question at the moment... when to buy more tokens?!
And also, I feel quite safe, because I know that I have invested in solid coins, not crappy coins that might just disappear and have no value! I guess that is one of the most important lessons of dips and bear markets... invest in projects you believe in! And that reminds me of the fact, that maybe I am getting close to the time when I should buy some AVA tokens?! :)
I believe AVA has a real future. That is unless of course people stop booking their travel and accommodation online. They offer essentially the same prices as every other site and the look and feel is the same. Plus people can still pay with credit cards as well. The only real difference is that they accept crypto payments, which at least right now is probably hurting their bottom line.
I think the better strategy is to HODL. Selling off BTC will only foment the dip. It is understandable to feel anxious watching the worth of these coin dip, but It is quite easy to reconcile with it once you accept the high volatility nature of the coins.
Dear @gooddream
Solid read. Topic still quite hot and trendy :) upvoted already.
Im only worried about not having enough stable coins to buy more into this current violent correction.
Personaly, I do not care much about TA and charts. I focus on psychological aspects of investing. And I've seen recent market already as quite unhealthy: to much hype, growing FOMO and many newbies entering crypto space. So called "weak hands".
And those weak hands needed to be shaken off. Sooner or later. It's just another wealth transfer, as we've seen many in the past. However, neither crypto, bitcoin or blockchain technology will disappear.
It's also crutial to mention, that idea of bitcoin being banned doesn't seem to be real any more. Window of opportunity to do so is gone. Back few years ago (during crackdowns in 2018) goverments kind of collaborated with each other and crypto was young. And they failed to ban it.
Currently I cannot see China and US and EU collaborating the way they did in those days. And bitcoin matured and got so much stronger. So it's not going anywhere.
In a long run many of us most likely see BTC reaching new all time highs. Sooner or later. But ... what about short and middle-term?
If some miracle won't happen, then I would expect sideways movement for upcoming several weeks. After all, institutions are not the ones driving price high. Those are usually all those newbies, who follow FOMO and who are becoming very greedy very fast.
So we may need some time to attract more such an investors. We would need more new "weak hands" which will enter the market being quite sceptical and after seeing their first investments being succesful -> they will fall into GREED MODE and invest so much more of their savings.
That surely may take some time. So we simply need to be patient.
Cheers, Piotr
Times like now are why I'm thankful I don't really hold any crypto besides Hive/Steem, though it does burn my rectum a bit since I use my liquid tokens to pay for shit I want/need.
Definitely would just hodl though in your shoes or anyone else's. I remember when I first got into crypto and there was a big price dip I panic sold like an idiot, and regretted it massively (to this day as well). And, considering how the price dip on BTC seems to be somewhat because of social media attacks, I feel like it could easily recover in a few months. (Though I do know there were other factors, so who knows.) But, fuck panic selling. Hodl that shit, cuhhhh.