Why is Bitcoin Price Falling? and Where to Keep Your Money During Dips
Cryptocurrencies have always been a rollercoaster ride but time has shown clearly its the patient who profit off those who panic. Its really that simple.
"Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can't produce a baby in one month by getting nine women pregnant."
Straight from Warren Buffet himself, patience is a virtue especially in the markets and it may be the most important virtue. Of course the cryptoworld has seen many coins come and go, as I'm reminded by skeptics everyday, but so also have so many companies thats crashed right off the stock market. So whats the answer here? Don't invest in anything? Of course not.
With that said its important to note that cryptocurrency is still speculative and you should only invest in what you can afford to lose. My advice is to spend around 10% of savings/income if you already have an emergency fund filled. If not get that filled and learn some basic technical analysis to get you started.
So as stated above the main reason the cryptomarketcap is going down is impatience. Just like most successful companies on the stock market, looking at a year graph, shows in most case that anytime was good time to buy. If you look at the SnP 500 yearly charts you'll see also, even just spreading your money across 500 stocks will bring you gains no matter where you jump in. Dips can induce a lot of fear in people who do not follow the 10% rule or simply can't relax. Every market dips and while the crypto markets are new in comparison to the stock markets, its clear were seeing upward trend if you zoom out in the charts across most cryptocurrencies.
More nuanced reasons why the price of bitcoin and cyrptocurrency are falling is the controversy of the upcoming fork and how it will be handled. While this could be serious I share @Boxmining sentiment that this could be much ado about nothing, like Y2K. With that said who knows.
@Boxmining also revealed awhile ago that every Friday, cryptocurrency dips. It could be because of banks and institutions close on Friday as well as casual traders cashing out a bit for a good weekend. All these variables have come together after a major pump through May/June in the marketcap of all crypto and all that together will get you a clear case of the corrections.
Even so, there are coins that seem to break the pattern we see replicated in all the minigraphs on www.coinmarketcap.com. Here are a few:
Number one would obviously have to be Tether, which attempts to stay constant with the dollar. It fluctuates slightly but if your trying to sell BTC into USD and your exchange doesn't have fiat, this is the way to do it.
A personal favorite ChainCoin (CHC) has rose dramatically this past week while the rest of the crypto world has been on a dive. After a correction the price managed to stabilize through the day around $2.50. This is likely do the new trend in masternode coins as well the community emerging around ChainCoin. The coin soared in popularity and so the potential is unknown as the community seems to keep growing and carry the word of the masternode further and further.
Stellar Lumens (XLM) have held their value well during this weeks drop. They also have a community and the promise of mobile payments in any currency keeps the potential value very high for this coin. They have climbed to 22 on coinmarketcap. TenX (PAY) is also promising easy transaction and may have found a bottom.
In general masternode coins like DASH, PivX, ChainCoin, Exclusivecoin, etc can behave differently than Bitcoin but this dip has many worried and has even brought some masternode coins down with it. Its important to remember the above and know this is temporary. Many people sold their BTC when it crashed back to $200 but the patient believers waited. They waited and accumulated more of their coins continuing to believe. So no matter what your holding, its in the general interest of the whole crypto community that you hold your coins and if you don't care about them, think about that people who sold hundreds even thousands of BTC during the first crash, don't be those people.
Hold and Accumulate