What happens to cryptos 2 days ago?

Dear steem-bountiers

this week wednesday BTC reached the lowest level on this year.

And Bitcoin was not the only crypto to downsize. All the top 40 cryptos including Steem, decreased on average of 10.5%.

This brings the total market value to the lows seen in November last year.

The market continues to be below the moving averages that track the medium and short term trends.

The reason for this descent? Probably the controversial hard fork of Bitcoin Cash, which saw a complete divergence of views among the programmers, who were not able to agree a univocal direction to give to the project.

Craig Wright - who claims to be the creator of Bitcoin, known under the pseudonym Satoshi Nakamoto - had threatened to dump all his Bitcoins to support "his" hard fork of Bitcoin Cash.

In other words, one of the major "whales" of Bitcoin (that is, possessor of enormous quantities of this currency) could have liquidated his positions in one fell swoop, practically destroying his alleged creation.

It's no surprise then that many investors have panicked, including Steem owners.
But this is not the first time that a hard fork has negatively affected the market.

We did something similar last year, when Roger Ver and Jihan Wu - two other "whales" from Bitcoin - dumped Bitcoin to support Bitcoin Cash.

in that time too, the entire crypto market went up in smoke three times.

In January, Bitcoin jumped from $ 1,173 to $ 821. In February, it fell again from $ 1,066 to $ 962 and finally in March, it went from $ 1,271 to $ 911.

As you probably remember, in spite of all this volatility in the first quarter, in December of the same year, Bitcoin reached the historical record of $ 20,000, recovering 2.95% from its March minimum.

And as often happens, investors who left the market following those initial skirmishes lost the next stellar earnings.
So, what should you do now, if you have positions in Bitcoin or other crypto like Steem?

The most important thing is not to sell on the wave of panic.

To do this, it is necessary to look at the market in historical perspective.

Bitcoin was born in 2009 and in its short history it has already known 5 ruinous crashes:

Just to remember the major crashes, we have that of 83% in 2013 ... that of 71% in 2014 ... that of 78% in 2015 ... that of 40% in 2017 ... and the current one of 70%.

But every time Bitcoin has recovered, dragging the entire market into its typical oversized bubbles, which have recorded gains that have never been seen in the recent history of financial speculation.

Remember, highs and lows like these are present in all markets ...

In his book 100 Baggers: Stocks Return 100-to-1. How to find Them, Chris Mayer has shown (as if it were needed) that the dramatic fall in prices are common characteristics of the stock market.

Mayer cites in his book the title Apple, which from its IPO in 1980 until 2012 (year of publication of the book) had a revaluation of 225%.

However, to achieve that yield, an investor who bought Apple at the outset would have to withstand two losses of 80%, one of 60% and several crashes of less than 40%.

The truth is that all the big investors, cited in Mayer's book, suffered horrible losses along the way.
So keep calm ...

Volatility, even extreme, is a normal characteristic, not a "defect", of highly speculative markets such as the crypts.

Who wants to invest in these sectors, must make us a habit.

A market with low volatility would not be able to create the necessary conditions for high returns.

So volatility is our friend and we must know how to live with it.

Such as?

By investing only the sums that you could afford to "loose" without damaging your standard of living.

Infact, the positive side of these highly speculative markets is that you can get great profits by putting minimal figures at risk.

And sleep peacefully at night ...