How To Win In A Falling Market
How To Win In A Falling Market
I felt that I needed to write this for anyone who cares to know. Trading when the market direction is downwards requires a lot of dexterity and expertise which majority of the newbie crypto-investors do not have.
I won't claim to have been very long in cryptotrading but I can say I have been here long enough to understand how the crypto-market works.
The market is down for some reasons which one of them could be linked to the uncertainty surrounding bitcoin. The bitcoin hard fork that is anticipated in August has turned most investors defensive investors. Major investors are treading with caution. This in turn leads to massive cashing out in the crypto-market making many valuable coins losing value in exponential way.
This on its own has created a very valuable entry points for discerning investors who know how to ride the tide.
Strategy
Trading in a declining market can be both rewarding and risky. The approach for me should be a longer term approach.
Only coins of value should be purchased especially those that have lost value at a great rate. When things normalize, those coins are the ones that will likely recover faster. By coins of value, I mean coins that are solving real life problems.
Approach
Buy value coins that have lost substantial value due to herd effect in a downing market. Coins like SBD, Steem, Golon, Library Credit, Grid Coin, Sia, Storjcoin, Burst Coin, Game Credit, Mobile Go, MaidSafe, Nem, Stratis, Wave, Factom, Ethereum, ETC and more,
Conclusion
Trade cryptocurrency as an investor so adopt long term view for your portfolio. Let Warren Buffet's approach guide you, ie be greedy when others are fearful and be fearful when others are greedy.
Resteem, upvote and follow @richguy.
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This can be true, but IMO it's better to wait for some signal that the coin is recovering before diving in. Sure, you may not have purchased at the bottom, but you're also having your money working for you immediately, and you're not just holding... waiting for the profit to kick in while sweating bullets as it continues dropping at worst or is stagnant at best.
Just look at how far Digibyte and Synereo AMP fell. Digibyte, as the example, looked like it had stopped its massive decline at 1000 Satoshis... and then it just fell down to around 600. This example includes STEEM last year, which went to $4-$5 USD and then dropped down to a handful of cents.
Timing the bottom is just incredibly hard and may not be worth it unless you're ok Holding and have a tremendous amount of confidence in the project. As my friend @jimmyrai28 likes to remind me, "Don't try to catch a falling knife. "
An amazing view which I cannot dispute. However, you have to know that if indeed the coin is a value coin solving a real life problem, it is only a matter of time.
Litcoin fell from around 36 to about 18 in 2 weeks before but where is it today? Above 50.
When you go in with a long term investment mentality then you have nothing to worry about.
I agree there. If you believe in the coin for the long term then it doesn't matter where you invest because your belief is it will gain traction anyway. So if you combine your post with fundamental analysis, it can work. Technical Analysis alone just won't cut it since we are and will continue to be flooded with a bunch of really crappy coins that just aren't going anywhere in the long term :)
I personally wouldn't rush to buy sbd. It was actually running high for a while and is now heading back down to the dollar mark where it is meant to be pegged.
I don't see sbd staying at one dollar while only steem move. My thought though. When the market booms again, SBD will moon to try to catch up with steem. You cannot direct the madness of the market.
I wish you luck then, don't buy too much ;0)
You're right about that. When market is down, its time to buy. Eventually, it will rise when correction on their market value is determined.
helpful post
thansk
to be honest i love it when the market drops, its basically black friday but for cryptocurrency
Yes there is an opportunity that presents whenever market drops. Only discerning eyes can see them.
great info thanks for sharing ! Upped!👍👍👍
Awesomeness! Resteemed thanks for sharing!👍👍👍
This post has received a sweet gift of Dank Amps in the flavor of 10.78 % upvote from @lovejuice thanks to: @richguy. Vote for Aggroed!
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Nice article. I was about to start a similair discussion. Sell the coins that you know nothing about. Do proper research on any coin you buy. If the market falls at least you can hold your coins knowing they have a long term future. I found this amazing platform: https://www.coincheckup.com The site that lets you check all there is to know about the team, product, communication transparency, advisors and investment statistics on every crypto.