Why you shouldn't be worried about these dips and why I'm buying

in #trading3 years ago

I woke up today to a lot of messages with "is this it? is this the crash?" and "what is happening? are there any bad news?" and so on.

Remember that not all dips require some bad news to have happened, last week's South Korean news about a potential bad were overreacted, mainstream media does that a lot where they take rumors and post articles about them as news and the investors, especially new ones see it as a reason to sell. It causes an avalanche effect where they see everything going down and they want to protect their $ value so they sell, often at a loss because they are scared that it will drop even lower.

The smart traders are the ones that buy the dips, always leave aside some extra $ or Bitcoin to get the altcoins they are going to hold longterm cheap during times like these. They know that nothing is going to stop these, even if South Korea were to actually ban trading cryptocurrencies it will be a matter of time until another country picks them up and becomes the next place where most of the trading happens as we saw with Japan when China started regulating crypto trading and ICO's more.

Here is something that could be a reason to recent downtrends in price and why I am buying more, but remember that traders often overreact and corrections come faster than expected.

As Asia is still one of the dominant trading and holding of cryptocurrencies, in about 3 weeks it's Lunar New Year over there which is sort of like their Christmas where they spend a lot of money on presents and travel. Here is a Forbes article on Lunar New Year where they project a lot of people travelling outside the country this year and they expect an approximate of over $100 billion in spending.

Here is a chart that shows the last 4 years of Bitcoin price around this time before Lunar New Year:

Credit to u/Secruoser

Be aware that each year the amount of traders and new investors has grown, many take out profits for this event while many panic sell because of the movements. It's hard to call the bottom, there is a lot of misinformation floating around lately which can cause the dips to go on for longer than expected while long-term thinkers are buying in on each of them. While many may be aware that these dips occur often it can also be a way to re-assess your investments from currencies you've only bought in to ride the recent waves of pretty much everything going up to trade those profits to something more stable. Like I said in my last post I believe this year will filter out a lot of currencies and projects from the top 100 at least and we will be seeing a lot of value float away from some to others that have a lot more going on for them and have true real world use cases.

I personally just picked up some more Steem today at 33-35k satoshi and am holding some more BTC and other alts to trade them for Steem in case it drops even further. No reason to panic, this is a good time to focus on buying those dips or if you are not a trader post a bit more actively to get that cheaper Steem. :)

What are your thoughts on this? Do you think Lunar New Year is a big reason to the recent dips in prices?


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The smart traders are the ones that buy the dips, always leave aside some extra $ or Bitcoin to get the altcoins they are going to hold longterm cheap during times like these. They know that nothing is going to stop these, even if South Korea were to actually ban trading cryptocurrencies it will be a matter of time until another country picks them up and becomes the next place where most of the trading happens as we saw with Japan when China started regulating crypto trading and ICO's more.

Exactly!!. The best thing to do is to buy the dips now. If you can't buy then Hodl cus you'll be happy you did later.

I believe the crypto market is still in its infancy stage and will grow bigger than this hence more returns and profits (for the investors).

There's no reason to panic and sell now. Don't do that as you'll only become a weak hand and sell to those that have been praying for you to sell. In a short time, prices will go up again..


Thanks @acidyo for this post. It came at the right time and I'm grateful.

Happy Steeming

I wish I had more fiat to buy with cause I'd be chomping away at these sales!

I invest more into now, thank you for your info. and keep up the good work.

I’m not worried about it I’m gonna go shopping while everything is low this is the chance to get some of the expensive coins. 😝

"There's no reason to panic and sell now. Don't do that as you'll only become a weak hand and sell to those that have been praying for you to sell."

So true. They are praying for you to give them money from Heaven

One of the big problems is with a highly speculative market, there ARE many people who NEED regular profits to survive.

They can not afford to have large paper losses then take out their 'salary' from a much reduced holding. So they sell, taking a small loss, fearing worse - which does come, but doesn't hurt anybody who doesn't book the loss.

Keep taking small 'stop loss' losses and soon you will have nothing to invest at all. Or have to make 500-1000% returns to recoup. Those returns aren't there. Just plenty of wild swings engineered for the most part by manipulators who capitalise on fact-driven movements (like fears of a Korean crackdown) to pull the bottom out of the market and buy up cheap. Pump then dump again

Easier said than done but you have to hang in there. Crypto has been there before and come back even stronger

When the market manipulators want your bitcoins in a dive there is only one answer

LetThemEatCake.jpg

FANTASTIC POST............................................

Doesn't matter how much market goes down. You are not in loss until you sell your crypto.

Therefore Just Hold It.

This is not true. And its a big mistake to ignore. Ego and overconfidence are the main features of loosers in the global financial markets. You should proove you ego and be more respektful to the market.

The market is always correct - nothing else. The marcet makes the prices and this is the main feature. There are more than 3000 coins meanwhile in the market. And nobody knows which coin will survive the selection porcess of the future. Propably only 3 or 5 coins - evenutally 6-12 coins, but not more from my point of view. This means that 99 percent of all coins propably will be worthless.

What do you think will happen, of there is an Amazoncoin or a facebook coin in future?

Difficult to say what then happens to the other cryptos in the meanwhile. I don´t like the overvalued comanies like Amazon or facebook and its censorship - but they are very big and has enough financial power to restructure the complete coin marcet.

Do your own due dilligence. And note: It makes not sense, what you or me are thinking. In the markets people acting which are able to press a button and to sell some millions within a second and so on.

Good luck. This is casino money at present. Monopoly - it can bee a winner game or a looser game. Future will tell us more...

That's awesome, and totally how it seems to rise!

This is simply beautiful!

Great logo! I couldn't help but ponder one of two things: Would the 'designer' of this original thank you for putting their products in the minds of the people; or, dare sue you for copyright infringement?

Of course, you could argue that you've never seen their logo, or heard of their company; but, uhm...I'm pretty sure all eyes would be rolling...'yeah, sure'...;+)

Quality idea @dragonking. Of course, I now realize this might be pixabay...lol...

Peace.

Good perspective

Once you've been in crypto for a while these kind of dips are like water off a duck's back. I'm sure a lot of new people will be panicking, I know I used to. For more experienced investors like yourself this should definitely be seen as a buying opportunity though!

I am not worried about this dips because I already know crypto is like this. And since I am just holding and not trading (waiting for bittrex to allow new accounts) I am 100% relaxed.

Perhaps for the traders is stressful because they need to figure out their next trade. But for holders it’s not.

Lucky those who manage to buy cheap alts in days like this.

I agree! I'm just holding, too. I'm looking at this as just a time to buy more.

I'm hoping it'll stay down here for awhile so I can scrape together some fiat. I love a good sale!

When I checked out the charts today when I woke up, I'll admit it, I got a little bit shocked when everything was red :D But yeah, there's no reason to worry because these things happen all the time! Cryptos always recover, so it's the best time to buy something.

Yeah, I mean, it's a lot of money vaporizing. Certainly doesn't feel good. If you are able to buy some and you get used to this price though, it'll feel great when it shoots back up.

Is it a cheap market to buy into? Well, we are trying to make comparisons with the DotCom bubble. Total Market Capitalization of the sector. As of today (16 January 2018), Crypto market is valued at around 588 USD billions while the DotCom bubble at its heights had a figure of higher than 4 000 USD billions!!! Now let's add the factor of worldwide participation opportunity for the crypto sector, while DotCom was mainly a local US event! Then we have to assume a global market growth and monetary expansion during last 18 years. So, you can briefly imagine how big the REAL crypto bubble can grow! More details here
https://steemit.com/crypto/@p2port.com/cryptocurrencies-bubble-or-not-dotcom-example

@acidyo Agreed.

People are panicking, acting like everyone forgot what the crypto market cap was like 1 year ago. Everything is fine, those dips are great chances to buy some cheap crypto. Let them panic sell, I'm panic HODLing. ;)

Come on, everyone, it's the market! It has its ups and downs!

Sometimes I think we're all a bit too spoilt by cryptos constantly exploding and skyrocketing! Just have a little patience!

At the end of the day you have to ask yourself where you see the prIce and market being a few months or even a year ahead from now. If the answer is up then why the heck sell right now ? The market can switch at the drop of a dime and you might have to buy back a lot more expensive or you lost your chance to keep a decent stake in that crypto you like so much

Just keep posting and having fun @dandesign86. I acquired most of my Steem over a year ago when it dropped from $4.00 to almost nothing.

Many rage quit, complained, powered down or slowed down in posting. Very few kept going during that period and the ones who did stacked a lot of Steem.

My hats off to you for sticking with it, it's easy to say that if I would have been on Steemit that early and that happened to me I would have stuck with it and invested a bunch.

If you weren't there at the time you can't understand the strength and conviction it took to stick with it. My hats off to you - because the people who stuck around at that time made sure that Steemit is alive today !

Great time to buy the dip in your fave coin! But if you are going to buy today, wear some thick gloves!!

falling_knife.gif

I just sit back and relax because I know it will go back up eventually , I used to panic before and sell but I got a whole year ahead of me :D

“The intelligent investor is a realist who sells to optimists and buys from pessimists.”

This a good time to buy STEEM. IMHO, does BTC, LTC or ETH can rise 5 times from this bottom say, BTC $10000, LTC $175, ETH $1000. But STEEM has potential to go 5 times- $17.5 and even 10 times $35 form current low of $3.5. I understand diversification, but STEEM is undervalued and potential to rise higher than any other top crypto- why? Because its big events are still ahead- HF20, Hivemind, easy-signup, 1-10M users, ultimately SMT. STEEM is not even traded in three big Bs yet (Binance, Bithumb, Bitfinex).

Why would you hold BTC? BTC owners legitimately should be panicking, it's one of the few cryptos where adoption is going downwards.

Yup, at the bery least HODL. I had already spent my "limit," but i think im going to buy a little more this weekend depending on how it drops.

This may be the final downwave on the road to it kicking up again. As such im going to watch the next few days carefully and see if i want ti buy a little more.

Definitely will find an entry point to buy those precious Steem goodies. How low can the dip go though? :'o

The dip is for real. At least you had some cash to buy at some point in this dip. I'm trying to figure out how to put more in but I don't think it'd be wise in my budget :P

I understand what you mean bro hahaaha

Haha i just made a similar article in Chinese. Undoubtedly it’s just another chance to buy the dip.

Haha i just made a similar article in Chinese. Undoubtedly it’s just another FUD the whales try to create by spreading rumours to let them buy the dip. Just HODL on to the coins that we have faith in :)

Nice post. You are right. This is just the normal market. Welcome to being in a volatile business. This also provides opportunities.

Great analysis and excellent timing for the post!

An article actually just came out in the Financial Times discussing the same explanation:

https://www.ft.com/content/25fbcb1e-fb15-11e7-a492-2c9be7f3120a

This used to be true several times but who know if it will be the case today. When MTgox collapsed the 'dip' lasted for years. Growth has been ridiculous in 2017. This was long overdue...

Yes it is a good idea to buy

Buy the dips.

🗅

What will this massive power down mean for the value of Steem?

Start power down of 71,456,407.984 STEEM

See https://steemit.com/@steemit/transfers

This scares me.

Thanks for the information..the best to do is to buy the dips now .i believe the crypto market is still in its infancy stage and will grow more than this than this hence more returns and profits for the buyer.

I believe in the power of HODL.

I am @earnmoresteem and you got a 5.88% upvote courtesy of @malonmar! I invite you to send SBD with other post in memo and I will upvote you this new post.

Crypto sale is back again

I think bitconnect closing up shop shook a lot of people. "If government threats can close up bitconnect... how safe is my bitcoin?" The answer is, infinitely safer... but, their bitcoin is now your bitcoin and you bought it on sale. Congratulations!

This new year theory is good and the charts back it up. I should remember this for next year... Thanks!

I bought EOS IOTA and ADA in this sale and. Steem is holding up well in this crash.

risovach.ru (1).jpg

Excellent analysis and good graphics.

Asian retail investors don't invest to make spending money. They invest to get Jack Ma rich. They will eat only ramen for a month and walk 500km home for New Year to put money into crypto.

"taking major gains to buy some cool shit"

FYI, Lunar New Year is Feb 16 this year.

If you believe in crypto, actually this is the good think, because you can buy more at lower prices. If nothing, this is buying opportunity.

I always say to everyone asking for recommendations that cryptocurrencies should be bought when they are on sale. You buy clothes on sale, so you should buy crypto on sale as well. I am doing great with this idea.

I am not concerned at all, in fact I am excited to see this take off

hodl.jpg

Oh really..thanks for your information..it is really smart to buy a dips now.
I think the price will grow now again.this is only for short periods.

Steem is to high to buy.It will go more down,as always.And more up with time. :)

It's hard to hold, but you just gotta remember what it's going to do in the long run!

Today, 17/01/2018 and tomorrow, 18/01/2018 are crucial in determining the medium-term trajectory of Bitcoin in the crypto markets. If BTC/USD doesn't fall below 8560 by 12:00 GMT on Friday, that would be a very strong buy signal. Before then, it is best to stay on the sidelines. If however, BTC/USD falls below 8560, we are going to see Bitcoin drop to 4000 within the next three weeks.

Right now, traders should either be selling or waiting on the sidelines to see what happens by Friday !

We just got to keep HODLing 💪

hay this information is very important, allow me to translate into Indonesian, because in our country many are panicked with the price drop today,🙏🙏🙏

I agree, although I am still trying to figure out the whole Alt coin thing. I know that any market runs in cycles and the whole sell high buy low thing is real. I wish that I had some money to put into more alt coin at this time but I don't today if we are still in a dip on Friday though I will be. Thank you for they thoughtful article.

Buying bitcoin and other crypto like a crazy. It like giving candy for free.
Hold, buy, hold, buy.......
Resteemed!

We trust you! Thanks for informative review :)

Don't worry be happy!

Thanks For sharing

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Great tips dude!

its the hottest investment right now,

I think these declines are due to the New Year. But I am sure it is rising
Thanks for sharing that information ♥ following you ♥
UPVOTE and REESTEMED ♥

Thanks for the information..the best to do is to buy the dips now.

Good advice, I have owned stocks since I was a small child. Back in those days I used to eagerly read the quotes that were printed in the newspaper. I would calculate how much I had gained or lost that day. But this is what is important, you don't gain or lose anything on a day to day basis, the only day you gain or lose anything is the day you sell so don't sweat the day to day.

Due to lack of experience, I felt worried, but thanks for such valuable information. That helped me a lot

One thing I don't understand in the nthought process of people that are buying crypto, if cryptocurrencies are monetary future / no more fiat, why do they convert the values of it in same. That doesn't mean no fiat/ no value...

Thanks for the good post!
As I am closely observing the situation now in Korea, I am so sure the government will NOT ban cryptocurrencies. All they possibly do would be to regulate the exchanges as of now.
Investors here also cry out, HODL! :)

That is the same question that keep coming to my mind but it might be. however in other continent is the same not only in asia . so my might no is that since is all over the world, new asian year can not be causes! It is another reason. Mining of dis crypocurrency is another reason because majority dont buy again but mine,which means the there is no economic balance between supply and demand !

Silver holders said the same as silver plunged from $50.00 to $15.00, you should never ignore market movements and fundamentals. New developments from China and South Korea in the past 24 hours has led to the latest crypto sell off. This could be a buying opportunity but do not let emotion cloud your judgment.

I'm not a trader as I don't understand any of this yet so thanks for the advice to post a bit more actively. I can do that!

Does this has any implications for powering up? Is it still good to do that?

A good analyse of the why. A seasonal reason is a good reason :)

Thank you very much for sharing this post because you just did not share this post. This post has been written in a nice way by writing everything and I thank you again and again

Interesting thing.
i didn't know Korea was a country had that much powerful influence on something in international matters

Just trust the blockchain! :D

Yeah, I think you're right, man. I've bought a couple of coins today too.

Wise words. Since I removed most of my coins from the exchanges in order to store them on my Nano S, I must say i'm much more relax about those fluctuations.

I am no experienced trader but I was a bit shocked too seeing the dip. But I am still going to hold out, I know it is going to bounce back and then someone will be laughing:)

In my opinion Lunar New Year can't be the reason of this drop. As you said it will be in about 3 weeks and I can't really see every single investor waking up and saying "Oh, I have to buy presents for Lunar New Year, let me take some profits". This sort of crash is due to fear and unconfidence. Yes, profit locking could be part of the reason but just a small one. I don't believe it affects market that much. Although the chart clearly shows how each year during this period of time a dip happens. I'm quite confused to be honest! Just holding my positions and buying more.

Look what happens when we have a day off school for ice here and I sleep in late. This is just what I've been waiting for. I'll happily take some bitcoin at these prices, although I'm gonna wait for litecoin to dip below $200 before starting some small purchases. AND I'm gonna laugh myself silly if Ripple drops back below $1.

I was not aware of the Lunar New Year event and his effects on cryptos, thanks for that info. I guess a lot of experience traders were hoping for a dip like that early in 2018. I can't say that I'm a trader yet, I just hold a few hundred usd worth in coins and most of it is steem power and eos(for the long term) . These buy opportunities I miss due to no money to invest makes me anxious sometimes hehe... but I'll get there, I will.

Asians and chinese in particular spends a lot of money before Chinese new year. All new clothes, a lot of food, presents, jade and a lot of other stuff. So i agree. No need to panic.😊im no expert by the way. I just agree on this explanation.

So true. Whales are playing in the deep crypto waters. If u look at solid top coins, 24h change is in red but last prices are green. They buy buy buy while regular folks are out of ammo and FUDing. Business as usual, people. Don't PANIC

Holy fuck man, I am glad this community has you.

My experience at this drop was that I remained absolutely calm and I took the decision to invest in Steemit. I sold some other coins and bought as much STEEM as I could (even tho it wasn't that much). I won't let this train pass again.

Again, glad to have you here around Acid!

Nice word.... Its educative

There have also been rumors about China banning some things but it's all hear say at this point. I'm also going to buy some cheap coins during this correction.

Crypto lifestyle!

Those stats at approximately the same time over four years is fascinating @acidyo

This is an awesome news and a nice investment you got there.

I Think, We have to hold and patiently waiting

So true. Whales are playing in the deep crypto waters. If u look at solid top coins, 24h change is in red but last prices are green. They buy buy buy while regular folks are out of ammo and FUDing. Business as usual, people. Don't panic

So true. Whales are playing in the deep crypto waters. If u look at solid top coins, 24h change is in red but last prices are green. They buy buy buy while regular folks are out of ammo and FUDing. Business as usual, people. Don't panic

I don't really care what is causing it. I hope it keeps dropping! It will be a nice correction after this crash. And maybe it takes a year to correct (though if past performance is any indication it should correct pretty quick) and that's ok with me. I'm in it for the long haul!

@acidyo sir...
Digital money can make us rich to deal with ourselves. I genuinely trust that. Be that as it may, what I additionally accept is that it will influence us to sufficiently fit to serve the penniless also.

It is absolutely difficult for all to give. Every one is battling in their own specific manners. In any case, that is the magnificence of life is it not? One who has seen the intense time will identify towards the one enduring. Such a one when independent can promptly consider helping other people. When I put in endeavors to gain, I should put in little endeavors along to share.

One might be poor out of absence of education, another might be expected life's weight of overwhelming obligations, another might be out of sheer apathy and some might be not able meet the sudden needs of life. In any case, the truth of the matter is same. They all need assistance. From numerous points of view it can be tended to....
Cheers~~~

smart idea @acidyo,,, very-very fantastic

I am a crypt newbie but already learned a lot about this game,it is not for the faint hearted! Do not make emotional decisions.

Thanks for the information of the last years dips,so no need to worry.
This is indeed a time to weed out bad coins from the good,only coins with usability will survive like Steem.
Since am not a trader,i will increase my posting

Excellent post and i just want to say that trying to stop the cryptos is just like trying to stop the rain, impossible, so buying at dips and hodl is a wise decision.

Ya Best time to hold

People should stop freaking out it's an unstable something, thanks a lot @acidyo

+I admire your username

I really like your post

You are definitely right about setting aside some excess $ for dips such as this. I think we needed a correction in order to continue higher! I think there definitely has been some panic selling from people who were buying at $18-$19k.

The timing of is very suspicious and makes one think there is real credibility to the drop being due to the Lunar New Year! Coins like Steem are a real bargain now!!

Really interesting to read about the Lunar New Year and how that could be part of the slowdown/downturn. I'm always cautious to directly compare Crypto to stocks because of exactly this kind of thing, sentiment over pure business investments, I'm no crypto expert with only small holdings but I've been following intently for a couple of months now (I know, I'm late to the game!!) and I made a good profit from predicting a little pre-new year lull although it may have been a fluke!

Anyway I definitely think this could well be playing a big part in the current downtrend. We're also seeing a good deal of resistance at levels that we would have been more than happy with in November. I'll be interested to see how the next few months plays out. I can't help but feel that once Bitcoin starts to meaningfully recover we'll see a much bigger growth in Alt-Coins as the masses start to educate themselves on the merits of BTC alternatives.

Hopefully we'll also see the start of even bigger growth here as the platform evolves!

Thanks for your sharing dear @acidyo

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I'm certainly no trader, but have a few investments, here and there (including Steemit). Some months into this bumpy ride, I've learned not to panic/pull out, and even 'buy the dips' when I have some change...

Invest only what you don't mind losing, I was advised, very early on. It's all a (serious) game, anyway, so I'm learning to have some fun with it :)

BTW, congratulations, @acidyo, I saw your name on a chart earlier this morning as one of the top earners, here on Steemit, in the past 90 days!

Smart investors are the ones who'll get more money out of these dips. Cryptocurrencies will be the new trend and the future. We should not be left behind.

Buy steem dips not Bitcoin dips.

It does make sense about the Chinese New Year. Thanks for sharing these anti-FUD resources.

The spending is no small feat as you stated. The tradition here is not to exchange gifts like Christmas, but red packets - little envelopes full of money. This is so prevalent that it's even built into the ubiquitous chat app, Wechat, with an option to send digital red envelopes.

China is more capitalist than Americans can imagine, and the recent boom of wealthy middle class seriously want to flaunt their cash. So yeah, totally understandable (Korea, Japan, Vietnam etc share the same cultural traditions)

In this world it is normal to see these price drops, it is not surprising that it happens or remains a while longer, all currencies have passed a clear example was Bitcoin, but always manage to recover, fall into despair of sale without reason urgency is something illogical, you just have to wait for the tide to calm down again, new solutions always appear like the example you give of China and Japan with the ICO`s

Tired of seeing people freaking out like that. And yes, I think the Lunar Year has a big role in it. We will see what happens in a few weeks.

I don't think certain entities potentially being under investigation for Tether has a lottt to do with the price action we've been seeing. Tethers printed, price goes up, no new Tethers printed recently, price goes where?

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