It’s all red, time to buy
Bitcoin was down to $43 000 yesterday, dragging down all the crypto market with it.
While for many people this looks like the end of the bull-run, for experienced traders this is the time to reload with ammunition for the next phase. Downswings like this happened in the past, even more violent, with BTC dropping even more than 20% in a day.
I could fill this post with charts from the past to prove this point, however the data is there for everyone to study. This is happening since the 2013 ATH to 2017 ATH to now and it’s unlikely to stop.
Keep in mind the true fundamental of Bitcoin, which is adoption. More and more people have bought BTC, institutions like MicroStrategy and Tesla, banks, hedge funds, they all put money in Bitcoin. Teams of analysts are behind these investments, not much is left to chance when you are investing billions in something.
Also, these institutions are lead by famous and influential people (Elon Musk, Michael Saylor in our example), they will do a lot to bring other people to crypto and increase demand.
Take advantage of these prices
Right now the best strategy to follow is dollar cost average and HODL. Buying the dips and lowering the average cost in dollars will make your investment in crypto more profitable in the future.
We are currently in one of those periods when the price of Bitcoin (BTC) is multiplied by two, three or even ten in the space of a few months. These are times when cryptocurrencies with no interest, no future and only infused with marketing take several thousand percent. These are favourable situations for investment and profit-taking as well.
In these cases, it is often more cost-effective to follow trends, to position yourself on very popular projects to make a profit rather than to focus on the underlying technology. Spending time doing the day before to find the projects most likely to see their prices go up often pays off.
Even if, in reality, in those moments, anyone can earn money . However, care must be taken not to be overly greedy and to make profits on a regular basis. Indeed, the market can turn around at any time and your potential gains melt like snow in the sun.
A return to fundamentals
Keep a reserve, secure your winnings.
This will allow you to go through bearish periods with much more confidence and serenity. The return to fundamentals and the understanding of technology usually come after speculative madness.
While the majority of small traders resell their cryptocurrencies in losses after buying at the highest point, they promise never to touch these things again.
However, some of these investors remain.
Be one of those resistance fighters and make the effort you should have made before you started investing. Bitcoin and cryptocurrencies bring real technological, societal and financial advances. Understand them, increase your knowledge and even participate in the development of these networks. Set up a Bitcoin or Lightning Network node, learn how to develop on Bitcoin or Ethereum…
Deepen your knowledge
The list is endless, while in 2017 we had a lot of scams, related to ICO craze, but in 2021 there are plenty of interesting projects that are here to stay: Polygon (Matic), Cardano (ADA), Elrond (EGLD), IOTA, BNB and BSC tokens and many many others.
We presented some of them, we will continue with others in future, blockhain and WEB 3.0 technologies are just in their infancy right now.
If you’ve been interested in Bitcoin and cryptocurrencies for potential gains, no shame. Most of us have been there.
However, when the euphoria falls and crypto analysts and experts gradually disappear, don’t give up! Take the opportunity to dig deeper and fall deeper into the rabbit hole.
These quieter periods are ideal times to learn more about the history, ideals and workings of cryptocurrencies.
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Investments in cryptocurrencies are risky!
Btctools is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused by the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers must do their own research before taking any action and invest only within their financial possibilities. This article does not constitute investment advice.