Panic and fear during price corrections
For many of you older Steemians this is just another day in cryptoworld which you have gotten used to by now. Some of you have learned how to protect yourselves from these corrections somewhat, while many of you just ignore them cause you know what is going to happen because it has happened time after time again. You just sit back and watch it unfold and decide to not take any action.
If I had a Steem for all messages I receive during these corrections, I'd probably be able to upvote myself a few $ worth. It's always the same questions: "What should I do?", "Is crypto crashing?", "Is this the end?" and each time I usually tell them the same thing.
No, crypto is not going to "crash", this is not the end and what you can do is either trade some of it to something more stable such as USDT (tether) or fiat on exchanges that allow it or just sit back and wait. Sure the latter is not as fun, you've already gotten used to your holdings being up a certain amount and being worth this much fiat value that watching it drop might hurt you. Many seem to quickly forget all the gains that they have earned in the mean time so I often like to remind them to zoom out.
This chart represents the total market cap of all currencies listed on coinmarketcap for the last month alone. We went almost 3x up in $ value in 1 month, of course there is a correction going to take place sooner or later. Nothing can go up forever without healthy corrections, they make look brutal on days like this but it only means that the next uptrend could be even bigger. There are also a lot more people involved now, a lot of newcomers and so called "weak hands" that will sell. If you haven't traded some of your liquid assets into fiat or USDT by now, it might already be too late, selling now increases the risk a lot that you might miss the next uptrend and find yourself holding less crypto currencies than before you sold. That's how fast these move, the volatility is immense. You could wake up the next day and without having set up stop-limit orders you might find yourself buying back at a loss.
Before I was involved with Steem I used to be one of those stressing a lot about my holdings, as most other currencies don't have incentives like Steem to give you influence over the reward pool and increase your stake. They are just there and the only thing you can do with them is speculate on market movements or invest them into new projects. I found myself often getting into trading during corrections like these, before USDT existed and there was only fiat you could trade it with on a few exchanges, it lead to you having to choose which coins you thought would drop less than others. It made me stress a lot, lose sleep and find myself often coming out shorter in crypto after the correction was over than had I just not acted on it at all.
Today there are a lot more options available, I'm sure many of you are prepared for these corrections but they also come with risks. One of them being that a lot of your holdings have to be on exchanges and that you could miss big movements on their way back up after you just sold cause you thought it would correct some more. This causes many investors to only trade with a portion of their holdings but it still becomes more than a gamble than just having held onto them and not cared about these corrections. Sure there is opportunity for you to gain more crypto out of it, but for anyone to win it means there have to be others that are losing out on it.
This is why I appreciate the Steem token a lot more, the incentives of being vested and active on the platform make it possible for me to just sit back and relax while I watch many others stress or regret their actions. To me it is like a completely different world cause I don't need to try and get involved with the trading as much and gambling, I can just focus on the platform and increasing my stake by being active here. In the long run it won't matter to me if I could've made 10% more Steem by trading it for Bitcoin and maybe being able to buy in cheaper, or made 30% by trading it for fiat or usdt and buy back when it's cheaper. It would mean I'd have to take a huge risk to possibly losing out to more experiences traders, insane volatility or the risk of exchanges going down with all the funds. I'd rather just keep the Steem vested and actively influencing the rewardpool and the users here with no stress, risk or fear that I could lose it. To me it doesn't matter what the $ or € value is of my stake, what matters is how much of it I have in Steem and what I do with it.
What are your thoughts on correction like these? Do you trade actively during them or just sit back and look at the long term perspective of things?
I agree 1000%.
Personally, I am a HODL. A 30% correction in the cryptoworld is nothing, especially after a 3x increase in a month. This is not like the stock market where a 5% move is traumatic. In this sector, a 5% move is a coffee break.
Each time it pulls back fiercely, it usually corrects in a day or two. The underlying development is the same as it was yesterday. There are thousands upon thousands of developers banging away on their keyboards creating new apps. Blockchain is changing the world.
My suggestion mirrors your...buy and ignore. Focus upon making this blockchain the best it can be and forget about the price action. It will take care of itself. For STEEM, it is going to be a wonderful Q1 when we eventually get the next fork. That is really going to blast things to another level in a big way.
As for the end of crypto, dont buy it. Wall Street still isnt here and it will soon reverse. Like stated, pullbacks are healthy. Markets need to reset after such long runs.
All the crypto moved in the last 24 hours is in stronger hands than it was a day ago.
This is simply how markets work.
So true... get some coffee and check back later... LOL :)
I did...my holding are down another 5% LOL.
Big money is made in cryptos by HODLing. It really is that simple. We can look back over the history of bitcoin and see some major pullback....over 60%.
Heck even STEEM dropped to under 10 cents...that had to be hard to take. Nevertheless, the ones who have a ton of SP now are the ones who didnt bail but hung in there (and even added if they could).
This is a multi-year deal for me. I do not fret too much about a couple days whacking a ton off the prices...this is going to happen. If I didnt want volatility, something like Treasuries might be a better play for me.
We all love the 40% jumps, need to expect 40% pullbacks at times.
I am a bit upset that I bought a decent amount before this correction, the reason I am upset is because I just bought more and I wish I had the money from the first buy to buy even more right now. HODL.
It's good time to just hold now after solid consolidating of prices. Im very satisfied of my holds in couple of weeks. IOTA is going crazy and got also some BTC when the price was 12k USD!
It happens usually after a week or two when the market crashes, instead of panicking , BUY BUY BUY! It’s perfect for a greater investment and outcome when it rises again in about a week. Keep calm , and hold on
HODL what u got, buy more if u can while it is cheap grab a beer and relax
Exactly.
This time I can see that most investors are cashing out.
Who could have thought BTC is as low as $11k.
cryptocurrency correction should not be a big deal cause we all know it could happen.
It is what it is so good.
keep on steemit.
Buffett says it well; "Be Fearful when others are greedy and greedy when others are fearful.”
Its almost a cliche this saying but it's powerful words if you look at them carefully. It's when you do the opposite of the market that you often make the biggest profits
This is totally the time to buy in big. I bought quite a bit in the BCH dip, which wasn't as good of a deal as I thought it was, but if you always buy the dip, you're in a good position to win big, so I'll keep on buying these dips.
I agree @dandesigns. Presently I am not adding (mostly since I dont have more fiat to throw at it) but I would understand anyone who does.
Times like these, the market becomes a feeding frenzy and mob rule takes over. It is not logical and sets itself at the lowest common denominator which is panic.
Buffett is know for using the analogy of things being on sale....cryptos are on sale for 45% off today....it might be a one day sale so best act quick.
That would be the marketing line if there was one.
Honestly, I don't care so much about my portfolio, but I would like to see increasing Steem and SBD again, because this gives so many opportunities to found new projects in different ways. I also hope the community grows and grows and I definitley can't wait for the Steemtokens :-D
Wow, thanks guys for the unexpected upvotes, gratefully yours Martin
It will increase...have no fear...well at least STEEM will. I have no idea about SBD since I never could understand why that took off to begin with.
The steem blockchain is just as solid as it was yesterday with all the developers banging away on their keyboards. We are going to see some incredible improvements in the next 3-4 months on this blockchain.
Pricing action is not reflective of what is taking place on the blockchain. That is ultimately what is most important. At some point, the pricing action catches up but markets have their own way of operating.
@acidyo thank for your post. My little understading before crypto is two side which is long term n trading. There is need to trade and buy some coin when there is pump and same applicable to when there is dump. In the history of sbd I used the increase in price to exchange to usdt and some to fiat currency.
It is our understanding about crypto the price not stable.
This is my little take buddy.
Another day, another dollar,,, either up or down, no worries, we comes to play (-:
You are right, market on a down trend for correction, it will boost again
This morning when I woke up, I saw the shift and I am annoyed I wasn't up later to see it start to play a little. This afternoon, I started writing a post with the title 'My trading grace' because I am much calmer than I used to be at these times. The saving grace for me is that I have Steem in a platform where I can use it to add value without trading it. It is a pretty great benefit IMO and one people should really be taking advantage of.