Maybe it’s just me. But I am excited about the drop in the prices of Bitcoin and the other “Alts.”
What goes down must bounce back up. While the prices are down, you buy the “cryptos” you always wanted to own. The ones you have researched and believe in.
The crypto marketplace has been a sea of red as of late. Come early to mid-February we should see a tourniquet applied to this hemorrhage and see the price of Bitcoin and Altcoins go up. (Even higher in 2018)
In the previous article – Why Is Bitcoin Down? – I mentioned the reasons for the drastic decline in the marketplace.
Out of the year, there will be eight good months for crypto, two mediocre months, and two bad months. This is backed by looking at the historical data on the performance of crypto. January is the worst month for the cryptocurrency. It is very important to know that so that you are not carried away by the noise Fear Doubt and Uncertainty (FUD). You know why? While many others are in a panicked state and running into each other and selling. You are HOLDING.
It is times like these that the weak are separated out from the strong. The weak ones rarely (if ever) make it through the dark times into the daylight and profit in a large way.
This “panicked” state shows a day-trading mentality and not a long-term investors mentality. Day traders look for instant profits. They watch their holdings all day and all night and into the next day and sell at the moment there is a price increase. I personally do not see how one can live like that! It is crazy!
Long-term crypto investors do not have to do that. They invest, set and forget it (for a while, anyway). Sure, they monitor the movement within the marketplace and do their best to stay current on news within the crypto-space, but they are certainly not acting like day-traders.
It is my opinion that anyone who exhibits the characteristics of the day-trader or the weak who are easily panicked and dispersed at the sight of blood has no business in cryptocurrency. They are not mentally ready for it. They will second-guess themselves, worry themselves into illness (physically and mentally), and became doubters of the potential profits to be made in the crypto space and recline back into their comfortable “safe” space ever afraid to take risks. Fear once again rules.
I tip my hat and raise my glass to those of you who remain patient and disciplined.
I look forward to February when all of that red will turn into green.
If you invest, invest only what you can afford to lose.