Looks like things are going south for the cryptomarket again. If you are new to the crypto space, you might be feeling like it’s the end of the world for you investments. But if you’ve been into cryptocurrencies for quite some time now, you know that this is not new anymore, and you are already numb to these crashes.
If you are panicking right now because your investments are in the red, here are 5 tips on how to survive the waves of the crypto market.
- Have a long term perspective: There is really a huge potential of making money in the crypto space, but you will have to think long term. The cryptomarket is still in its early stages, and the market has not yet fully matured. This means that even the most knowledgeable experts of the crypto market are still exploring all the potentials of the blockchain technology. We have barely scratched the surface, and the future of the technology is really promising. When we say long term, however, it means waiting for as long as the market matures, which could take months or even years. This is the future of technology. The potentials are strong.
- Do not blindly follow anyone: Do your own research. It is okay to read up on technical analyses and listen to advisers, but make sure to take everything with a grain of salt. Again, nobody in the crypto space knows everything. We are all in the learning stage, and it is important that you do not blindly follow anyone, no matter how big of an influencer he or she is. It all boils down to your conviction, research, and resilience. Consider all sides. Do not be a fanatic.
- Have realistic targets: We all want to make money, but you should have realistic targets and exit points. Aiming to buy a lambo as your exit point is not a realistic target. Of course, that’s what anyone in the crypto space wants, but you should understand that the rocket to the moon may or may not happen. You are investing. Investments have risks. You should know when to pull out and when to invest more. Have a realistic investment strategy.
- Stay away from tick-by-ticks: Do not monitor the market’s tick-by-tick every second of the day. You are wasting a lot of your time watching the market’s every move. You will only exhaust yourself watching the prices go down. You are also risking yourself to become more emotional, which could affect your trading strategy. Once you get hit by FUD because of the tick-by-tick, you may make irrational decisions.
- Understand market cycles: Just like financial markets, the cryptomarket operates in cycles. There are seasons of bull runs and there are seasons of bears. It does not only go one direction, especially the cryptomarket. Investor sentiments are irrational and unpredictable. If your investments are bleeding right now, know that once there will be periods of recovery. It is just a matter of time and patience. Manage your expectations by understanding how the market behaves.
These tips may help keep your sanity during the bearish markets. Keep your cool and develop a sound trading strategy. The market may be going haywire at the moment, but it does not mean that you should too.