5 things to know when the bitcoin crash

Investment in cryptocurrency is considered a risky investment, you can as well make a big gain quickly than lose everything in no time. In short, there is no guarantee. This was proven ten days ago when the price of bitcoin dropped from $ 20,000 to around $ 11,000, a drop of almost 50%. We take advantage of this "crash" to give you some points to know about this investment.

However, we want to make it clear from the beginning that it is not a matter of advice to make a success of your crypto-investment, nor to influence your decision-making.

• Beware of reviews on Facebook or Reddit
  When we go through a difficult period, like the bitcoin crash, for example, it is normal to go to social networks to find help, or at least see what people do in your area. situation. Unfortunately, Facebook, Twitter or Reddit are full of malicious people who will not hesitate to give bad advice, like selling its bitcoins hastily after a fall in price ... Some will tell you that they predicted the crash and sold their BTC just before, but without being able to prove it. Worse, there are people who have no digital currency. The best is to be careful, and not believe everything that is said on social networks.

• Sell your BTCs quickly
  Many of you have probably had this idea in mind after this crash, and this is called a panic reaction. But according to experts, emptying your digital wallet in panic is an effective way to lose money. Indeed, you think you have lost a lot after the value of the bitcoins you bought at a high price suddenly dropped. But know that it is only on the paper of the moment that you have not really resold your currencies. With the great volatility of bitcoin, who knows, the price could perhaps start soon on the rise.

• The bitcoin crash is not new!
  You may have experienced your very first price drop since you were in possession of a digital wallet. In this case, know that the crash that took place ten days ago was already the fifth this year, the twelfth in seven years. From $ 1,300 to $ 900 in March, from 5,000 to 3,000 in September, from 7,900 to 5,500 in November ... the price drops have ranged from 33 to 40% this year. So far, Bitcoin is still rising after each crash, beating each time a new price record.

• After the climb, the descent
  As the saying goes "There is no climb without descent", and this seems to have proven after the spectacular rise in the price of bitcoin up to 20 000 dollars then its descent "infernal". Be that as it may, it shows us once again that there is no guarantee in terms of profit with an investment in cryptocurrency. In addition, there are many factors that can influence the value of a digital currency. So, if you have left for a long-term investment, this is probably not the time to panic!

• Buy when it's cheaper
  The famous Winklevoss twins did not become billionaires in bitcoin by chance, they had bought their BTC when the value of the currency was still "insignificant". As we just said, the price often ends up going down, allowing others to buy as long as it's still low. Instead of selling, you can for example accumulate other alternative currencies such as Ethereum, Litecoin, Bitcoin Cash, and other altcoins.

In summary, always have in mind the speculative nature of cryptocurrency, and it must always think carefully before acting. Before making a decision, consider following the news on the crypto planet, and feel free to learn more about cryptocurrency trading.