How to Protect Bitcoin Value That Dropped

faisalrizal2018 (12)in #en-us • 7 years ago (edited)

Playing cryptocurrency makes dizzy because the price is always fluctuating up and down quickly like a roller coaster.

Investors who put their money in digital currencies like Bitcoin do have to be patient to face the fact that recent trends show a decrease in the value of the cryptocurrency.

Even so, it does not necessarily make the Bitcoin players have to feel panic and rashly just off all its assets in the digital currency.

As quoted by CNBC on Saturday (3/2/2018), there are several ways for Bitcoin investors to stay calm in situations that can be considered unpleasant as it is today.

A. Divert the View of Bitcoin

According to Willemien Kets, Associate Professor of the Department of Economics University of Oxford, the rise and fall of Bitcoin's value makes this digital currency so attractive.

Nevertheless, according to him, examining the value of cryptocurrency continuously is not very productive, even he called it a trap. "Nothing can be done about the change in value," he said.

In line with the kets, Jack Tatar, co-author of a book entitled Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond, also provides another reason why checking the value of Bitcoin via cell phone constantly is a waste.

"One time, players could see that they managed to get USD 30 thousand.Unfortunately, cryptocurrency market has a liquidity that is different from the stock or bond market," said Tatars.

He added that this is due to the length of the transaction process on cryprocurreny, so over time the value can also keep changing.

B. The HODL Principle

HODL is short for 'Hold On for Dear Life', a strategy to hold Bitcoin by moving assets to the Bitcoin wallet - to keep it safe until it is decided to use it or sell it.
According to Ric Edelman, founder and Executive Chairman of Edelman Financial Services, when people sell and buy Bitcoin in a cycle, they miss the big picture of cryptocurrency and the blockchain technology itself

"It is undeniable, digital currency is the future, players have to prepare it for years," he said.

He also said that his decision to hold his Bitcoin for more than a decade proved to bring results.

"I've experienced a number of up and down the value of Bitcoin is drastic, ranging from USD 1 to USD 10 thousand, fell to USD 200, to increase at USD 16 thousand," he said.

He also realized that some people can not tolerate the rise of Bitcoin value. "If it makes the players look at the roof at night for no reason, better not have to have it at all," he concluded