The most important thing I learned from this price correction is to hedge your bets
I made a stupid mistake last week. I changed my trading strategy so I largely had 90% altcoins in my portfolio. So when the cryptomarket corrected itself, I was spooked by a loss in volume by 30%. Had I waited a few more days, it would have been fine. Instead I sold off half my altcoins to prepare for a bear market.
Last time the market corrected itself, I had half my portfolio in Bitcoin and Ethereum. This meant I could quickly sell them and buy them back at a cheaper price. During the last bear market I was able to increase my volume by 50%, instead of losing volume.
By hedging our bets, we would have only lost around 12% in volume instead of 30% and had the opportunity to make big gains.
Lesson learned.
1)-Do not hold more than ten different cryptocurencies.
2)-Keep half of portfolio in gold and silver, Bitcoin and Ethereum.
3)-Dont panic.
4)-In hodl we trust.
well thank you for this educative post! upvoted
thanks man. I try to follow everyone who upvotes and resteems.
Lesson
1-4)- DON'T PANIC!
Crypto's move because of panic, don't add to it.
Exactly. Diversification was created for the purpose of protecting one's capital. This is somewhat funny.
Funny cause I know you knew about what I just said. Looking at THIS post alone, the knowledge of diversification comes WAAAY before investing in precious metals.
You know what I think? I think it's the innate greed within humans my friend.
Does this sound familiar? "Why diversify when I could add multiples to the 3x profit I'll be seeing in a month?" Haha. (I oversimplified a little bit to get my point across.)
So, given what is evident, the moral of the crash is to execute what you already know.
Its pretty funny how greed gets in the way of profit.
It's actually very paradoxical now that you've pointed it out.