The Market Is Crashing, Don't Panic, Be Prepared To Benefit From It!
The cryptocurrency market is extremely volatile compared to other markets. This is very normal for a nascent market. So, don't panic and learn how to benefit from it, instead.
High Risk, ...
There are so many reasons for this high volatility in cryptocurrencies:
- Regulations change every day (Think: SEC, China).
- New technologies emerge (Think Lightning Network).
- Exchanges get created, sold, and hacked (Think Poloniex, Binance)
- Liquidity is so little (Think pump and dump groups).
- and so on ...
That is why it is considered to be a high-risk investment. Therefore, you should only invest what you are willing to lose! I am sure you have heard this so many times but did you really listen?! This is very important.
If you are investing your life-saving money, it would be more probable that you would be subject to market psychology. This will make you lose a lot of money. The following chart explains market psychology very well:
I have talked in more details about this in a previous post: Use Psychological Analysis, Not Technical Analysis.
It is true that cryptocurrencies are high-risk, but they are high-rewards too! Look at this chart:
Number 10 on the list is Bitcoin, and it has a gain of 1,318%. That is definitely high-reward. But how can we benefit from such a market?
Do Not Panic, Benefit From The Opportunity
When the market starts to crash, do not panic. Instead, consider this as an opportunity. Use the market psychology to your benefit. For example, make a list of your 10 best cryptocurrencies. Write down your dream-price for each one of them. Remember when Steem hit $7.30, and you were saying: I wish I had bought more when it was $2? Well, now you have a chance to do so.
When you are done with your list, go to your favorite exchange and put buy-orders with those prices. In many cases, the price spikes down for some few minutes (or even seconds) and your orders get executed.
What Is Your Top-Ten Cryptos?
So, what are your top-ten cryptocurrencies and what is your dream price for them? Please share with us in the comments.