Last nights Cryptocrash and some thoughts
The cryptocurrency world took a knee last night. We were at some point about $150 billion dollars down with the whole market going red.
Why?
The price of a cryptocurrency is split between investors who have a plan and speculators. The portion of the price that is supported by speculators include newcomers to the game who have not really figured out how they view crypto, so they don't have a solid plan when times get tough (and don't forget, there will always be tough times).
In the trading world, most people call them weak hands, which is 100% accurate because they don't hold their investments with a secure mind on where they intend to go with their holdings.
We are likely entering a bear market right now. So while we may see a short recovery in the next month, the reality is that we should be ready for sideways and downward trading for a while until people come back from the panic that just ensued. Long time investors in solid tokens such as steem have functional use for their holdings. No matter how the price of steem fluctuates, we all want more steem. The value in that is that you will always have a use for steem as opposed to bitcoin or those other coins.
Whatever amount of liquid steem you have, it's time to power it up and start interacting with the community more so than ever. Steem holds a value outside of the majority of other tokens that exist out there and that is where it's strength lies.
I powered up 10,000 SP today to further my investment in this platform. In addition I now increased my delegation to @smartsteem to 5000SP because it is an effective way to promote ones work.
If you hold other coins, make sure you understand why you hold them, what use it has to you and where you intend to go with it.
For speculative holdings, don't forget to periodically take off profits to protect your initial investment. It's better to pull out and make less than to panic sell and make even less. After all, most cryptos do not have an underlying value unless we are talking about something like steemit which has a whole network of value.
I hope you guys have a good day despite how red the market is. Go out and keep producing good content. Nothing has really changed in life, and your goal should remain the same. Steem on!
Today's photo of the day is more scaffold work. Its great to see the sunset and know that most of my crypto holdings are healthy and strong because I mainly hold steem!
Hello again @motoengineer ... It took me a while to learn some of the things you mention - and in the beginning it cost me. The most important thing (for me at least) was to remove emotion from the equation - and never make decisions based on fear (or excitement). That being said, when you see your 10 dollar investment reaching 100,000+, emotions tend to rule...
its pretty difficult to get an emotional edge on trading. I've stared at $10,000 USD+ losses in the face before and was emotionally wrecked, and that is largely because I was excited on the way up and on the way down. The reality is that if you don't have a strategy involving something you control, you will feel like you are in a downward spiral with no way out.
With steemit.com atleast you have control over how much value your Steem has. With things like BTC, you have zero control over what other people are doing. hence the massive value in Steem. Ofcourse we have our own growing pains.
good to hear that you understand that you should never make decisions based on emotions. the more you can do this, the more you can profit and be bold when everyone else is afraid!
I still have "fear" - but only of my X wife... LOL...
Merry Christmas...
LOL!!! i almost had water come out of my nose reading that one! Merry Christmas to you too!
Yep... She'll do that... :)
Thanks for the great article!
I would agree with that and add that everyone that became a part of steemit, while steem and sbd were around $1-2 USD, are still doing great(unless they purchased more steem at a much higher price). Anyone that never inversted money into there account but still have made money from it are also still in a great position. Only those who purchased steem and sbd at higher price than the market currently reflects are taking a hit. I haven't invested any money into the platform, only time and content. I've been heavily thankful as well that I've made some addition income also. I plan on staying apart of this community for the long haul because I see tremendous potential in the blockchain. I'm not going anywhere and I don't think anyone else should either. In life we have periods where we do great, and other periods where we do bad. Just because we do bad doesn't mean we'll always do bad. Likewise with good as well. I think the current steem and sbd situation is a lot like this.
The ups and downs are part of like. If you dont have that, itll certainly feel dull. The current situation is a composite. Some people think its down because of the way people behave, some people think its up because of the price.
Which do you think is more likley to dominate steem's future? Either we have a bit of good content and a bunch of crap, and thats going to drive the value down, or the few content that is good, drives the value up.
I think good content will dominate steem's future because it's more beneficial for the platform. I don't think people that post bad content will stay very long because it wont be worth it to them. Why not just stay on fb or insta where they already have a friends and followers.
I think those who actually want to make great content will win over because they will receive a much larger benefit. Yeah, you can spam and post content, but will you continue to do so if there's nothing in it for you? I doubt it. On this platform, hard work pays off. If you aren't prepared to work, then you'll most likely receive nothing. Just my thoughts. I'm aware that I could be wrong.
i don't know about that. Most bad posters will post to make a few cents, but if you are from a 3rd world country, that few cents could mean a lot. At the end of the day, if there's even a penny to made, someone will find that penny useful unless we are all elevated to the dollar standard.
That's a really great point. I hadn't even thought about that. That would pose a serious issue on the platform. I'm glad you brought that up.
Thanks for the inspirational words, my beleif also increased on Steem and converted my SBD into Steem in last few days because i believe that Steem will grow and we should not loose our patience, because in this world nothing is constant, so cryptocurrency also will not have stable life all the time. Thanks for sharing your opinions and encouraging words.
Have a great day and stay blessed.
initial investment, hmm can I get my time back, I don't think...
Started my crypto fortune at bitcoin faucets, lost at ponzi, won big in poker crytpo poker freerolls and made nice gains trading altcoins...just wish I HODLED more at right times.
I have sure withdrawn more than 0 :D
Faucets might be a bad way to get capital now, compared to 2014, but you can sure play at Steem poker league, other good poker sites kinda died over years...
you seem to have a very smart head on your shoulders! :)
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STOPNo clue how i missed u. But u have a new follower!
I've been following you for a bit now! Thanks for the follow back!