DEVALUATION OR LOSS OF INVESTMENT?๐๐ป๐๐ป
Hello dear friends, I hope you are very well and that you had an excellent weekend. Today I want to talk to you a little bit about our current situation in the crypto market. For nobody is a secret that cryptocurrencies are going through a bad time, this of course from a very personal point of view because there are those who appreciate this bear market to be able to make great investments and then generate very good profits. It all depends on the situation of each person.
But despite this, we cannot fail to see that both the cryptomarket and the current world situation is something that affects us in one way or another. Catastrophes are happening that nobody expected and most probably everything is going to get worse, not to be pessimistic, but everything points to a very dark moment as far as the world economy is concerned.
On the other hand, today there are many questions regarding the cryptocurrency market, should I give up and sell all my capital, or should I wait and continue investing? It is normal for people to think this way, but what I can say is that selling a coin well below your purchase is not the best decision.
One of the biggest problems of people in this situation is that they never think about the future, it is not the same to think and dream of a better future than to make good decisions to achieve all that you dream of (goals and objectives). My husband and I have always or for a long time thought that learning to diversify our income will always be the best decision, because in situations like this we will know what to do and we will not fall into despair.
Education is also something fundamental, because whoever understands the market and knows the causes of its movements will know that these things happen, that there are good and bad times, but that we will always have opportunities to grow, in a bear market you have the opportunity to buy and later generate great profits. So, all is not lost.
Some very important concepts to keep in mind are, DEVALUATION AND LOSS OF AN INVESTMENT. They are two completely different things, your money is devalued when you buy at a price and because of situations like the current currencies go down, obviously your investment will no longer be of 1000 dollars but of 500 for example. While losing your investment would mean selling under the current circumstances.
Remember that once the market recovers your investment will return to a point where you will make a profit, so, as long as you do not sell at a price below your investment you can not say that you are in loss or that you have lost your capital, remember that.
Thank you for reading my publication.
hello @franyeligonzalez.
No doubt that when we talk about economic terms such as devaluation or loss of investment, we must be clear that it is synonymous with loss of purchasing power and total loss of investment, which translates for the investor in reducing their working capital . in the crypto world is very common for this to happen if you do not operate the market with caution and strategies, short, medium or long term.
Thank you very much for sharing
Hello friend, thank you for your comment, yes, these are concepts to keep in mind. Greetings.
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Thank you very much for your support and advice. I particularly use steemworld to guide me and according to that my club is 5050. That is my guide to stay in the club. I don't know what application you use on your computer. Regards.
It is correct that devaluation is not the same as loss, since the latter only happens if when the devaluation occurs you sell the investments at a lower price than the purchased one, and this phenomenon does not only happen in the crypto market but in any stock exchange where money exists.
Hello friend, yes, thank you for your contribution. Greetings.
The only time you truly lose is when you get hacked and your tokens get stolen and when you sell, else, it is basically an impermanet loss.
Thanks for your comment my friend.
Hi
When I read
The first thing that comes to mind the little fraction of BTC that one may hold is Devalued and one can live with that as eventually it would bounce.
However the LUNA holdings are LOSS OF AN INVESTMENT.= and it hurts Ouch! so bad
Interesting chain of thoughts @franyeligonzalez
Hello dear friend, thank you for the examples mentioned, I agree with you. Greetings.
Thanks much i must say this are very trying time couple with the world economy situation nevertheless selling below price of purchase isn't such a good idea although depending on ones current situation as well.
Greetings friend, that's right, it's not a good idea.
I am 100% agree with you.
Thank you very much.