Red Monday? Or Bargain Shopping?

Sure its hard to see your crypto portfolio in the red on days like this. But moments like these should be seen as an opportunity as well. People have been panic selling, which is when you will want to buy.

Look at NEO for example, one of the crypto's hit hardest by the ban on ICOs in China. The NEO/BTC graph looks like this:

This graph looks insane, in a matter of minutes NEO lost almost half of its value. Yes the news was bad for NEO as it will see less ICOs on its platform and in general all smart contract currencies are taking a hit as the Chinese will not be able to participate in them. Obviously this will lead to substantial less demand for the likes of ETH, NEO, EOS during the times when ICOs are raising funds.
But does this news justify a price drop like this? Maybe it does for NEO, but I don't think it does. And certainly not for many other altcoins which were put on sale today. I saw this sell-off as a great buying opportunity with the little BTC I had, as the altcoins were retreating a lot faster in price than BTC was. At the time of writing this post, BTC is down 7% whereas many of the top altcoins are down 11-25%.

Earlier today some of those number were in the 40% range. Again, hard for the portfolio, but also a massive opportunity if:

1. You had some BTC to trade or
2. You had some Fiat to invest, which would be even better of course. After all, BTC did go down as well, just not as much. But this is a key point returning again and again. During corrections or downturns, altcoins usually get hit the hardest, obviously with a few exceptions here and there. Bitcoin just seems the most robust currency out there.

So the lessons we can learn from these crashes?

• Don't invest your fiat all at once when you start investing. Save some for downturns like these.
• If you do invest everything, put some in Bitcoin so you can use the opportunity to buy some altcoins for a bargain in times like today.

Don't worry if you missed the opportunity today (I also missed a few unfortunately), there will pleny of them in the future
So make sure you see these corrections for what they are: Opportunities to buy low! And for heaven's sake don't panic sell. Sell when the price is high or sell when you think its going lower, with the intention to buy back at a lower price, though this is very risky and can cost you if you are wrong. Especially if you fall for the bear trap (featured in my previous post). Enough 'trading advice', time to go shopping!

Good luck out there and stay tuned!

References:
https://steemit.com/bitcoin/@attalis/what-is-a-bear-trap-and-more-importantly-are-we-in-it
https://www.cointelegraph.com/news/china-halts-60-icos-as-companies-cancel-sales-awaiting-legislation
https://www.worldcoinindex.com/

Images:
http://thebriberyact.com/2012/01/05/e-learning-compliance-january-sale-40-off-try-it-for-free/