Back on September 10, 2017, I wrote an article “Cultivating Nerves of Steel.” In that article, I highlighted why you need them if you are going to be involved in cryptocurrency.
Then back on October 14, 2017, I wrote an article “Can You Handle The Volatility” to show that the cryptocurrency market – unlike the stock market and by comparison – is highly volatile; meaning that you will see sharp peaks and dips in a cryptocurrency (and in the market as a whole) in an hour, a day, a week, or a month. I saw my portfolio dip in price $15,000 in a two hour time period. I also saw it increase $21,000 in a day. Many people cannot handle the former and panic but would be elated in the latter. That will not do. If you are in cryptocurrency, you have to be balanced and not lose it when you see your portfolio drop in value. Remember, you should never invest more than you are willing to lose.
Then, back on November 11, 2017, I wrote an article “Two Traits Every Cryptocurrency Investor Must Have.”Those traits being Patience and Discipline. When tested, many fall short here. When the market takes a steep dip or when there is bad news they act hastily tend to follow the panicked crowd. Everyone’s running but where are they going? Whose up is up front leading that crowd? If you are in the rear, you cannot see who that is. So why are you running? Because everyone else is!
This article is a reminder and an encouragement. Stay on course, be patient, be disciplined, and do not – and I repeat – do not follow the panicked crowd!
The crypto-market is down this week. Why?
Rumors out of South Korea that it might come down on cryptocurrency Exchanges.
Chinese cashing out their crypto-gains for their Lunar year. (Their tradition)
People in the U.S. selling off some their crypto to pay their taxes.
There are few other reasons but not as relevant as those listed above.
News such as this impacts the movement of the crypto-marketplace. But then it recovers. You have to understand this.
If you are new to cryptocurrency, this could cause you to panic because you don’t know and understand. Yet, neither does the uneducated (in crypto), the impulsive, the greedy, and the undisciplined investor. They will panic and panic is contagious.
If you are going to be into cryptocurrency, you will be tested. It is a wild rollercoaster-like ride. The recent dip in the cryptocurrency market and the closure of the BitConnect lending platform has many people down and discouraged. But if you are not willing to cultivate a strong constitution you really have no business being involved in it. It is not for you. You will not survive. It will drive you crazy and you will be a worry wart! Who needs that! Who wants that! It is not healthy!
I view the dips in the price of cryptocurrency as opportunities to buy more of the coins I am interested in and add on to the ones I already have in my portfolio. I am NOT selling anything!
Large amounts of institutional money have yet to enter into the crypto space. I believe it will in 2018 and when it does, cryptocurrency prices will rise.
I pay little attention to what the so-called experts say. I pay little attention to a lot of the crypto-news. It is noise to me and I see much of it as bad and clever noise to condition one to be panicked and impulsive and to “market-manipulate.”
A lot of cryptocurrency investing is common sense if you understand how this game works. Bitcoin is down in price. You saw it up to $20,000! So, what should you do now that it is down? Buy! It will go back up even higher than $20,000.
Also – at a minimum – buy Ethereum, ZCash, Monero, Litecoin and I am adding a new one, 0x.