There’s no denying it: Bitcoin is going through a rough patch. The value of the cryptocurrency has dipped, and investors are worried that bad news could mean even lower prices to come. Still, there’s hope for this volatile digital currency yet.
In this article, we’ll look at what recent events mean for Bitcoin and what investors can do to protect their investment and sanity at this difficult time. Let’s show you how you can keep your cryptocurrency portfolio healthy – no matter what the market is doing.
Bitcoin Is Presently In a Dilemma
It is presently a difficult time for Bitcoin. Because it is the first and a giant player in the market, its plummeting price has also left a toll on the price of other cryptos in the market. Just a few months ago, in November 2021, the price of the coin was at an all-time high of almost $69,000. But right now, in less than 6 months, Bitcoin price has come crashing down. It has lost almost half its value, now selling at around $35,000.
But what does this mean to both existing and potential investors? What is the next thing to do? For some traders, this is the best time to buy Bitcoin and make some quick gains off the volatility of Bitcoin. If you are an avid trader, this might just be the best time to dip your legs deeper into the market and buy Bitcoin at the lowest rate because the price will definitely jump back up soon.
According to experts in the market, Bitcoin price will soon bounce back to its feet, and some even predicted it might be hitting a new all-time high when it’s fully back. However, this might not be very sweet advice to swallow for potential traders that are just coming into the market. You might just need to look at the direction of some other cryptos asides from Bitcoin. You can read more here.
So what can Bitcoin investors do at this difficult time? Here are some tips to help.
5 Things to Do As Bitcoin Price Plummets
1: Take a break
When you’re stressed out and angry, you might want to vent by talking with friends, posting on social media, or yelling at your coworkers. But if what you really need is a break from the noise and chatter, that’s okay too!
Take a walk in nature. Go for a bike ride. Bake something delicious from scratch—and enjoy it by yourself with a cup of tea (or coffee).
The alternative is to keep reading about how much value is being lost every day because of Bitcoin’s price drop, and remember: we all have an emotional attachment to our money!
2: Stay calm and continue your routine
In terms of the stock market, when the price of bitcoin decreases rapidly, it is called a “crash.” The most recent Bitcoin crash occurred in November 2018 and lasted for about 48 hours. During this time, many investors panicked and sold their bitcoin at a loss, which was a mistake. If you are an investor in the cryptocurrency market, you should be prepared for these types of situations. It’s important to keep your cool even when things don’t go as planned!
3: Make sure you’re already in a profit
If you’re not in a profit, it’s probably best to sell. If you bought into Bitcoin at $5,000 and didn’t sell until it fell to $4,000… well, that’s a lot of money to leave on the table. It would be better for you if, instead of holding through the decline in price and then selling at an even lower price if you had just taken your profit when it was there.
If you are already in profit, though – hold! This is where cryptocurrency investing gets interesting because the price can go down as well as up which means that while some coins are performing poorly, others are doing very well. The lesson here is: don’t panic!
It’s easy enough not to get caught up by media hype around cryptocurrencies, but staying calm will allow us all to make smarter decisions about the investments we make with our money.
4: Assess the situation
Another thing you should do when the price of Bitcoin is going down is to assess the situation. If you’re an investor, this means checking how other cryptocurrencies are doing and looking for opportunities in the market. As a trader, it might mean checking out other trading platforms and seeing what opportunities they offer.
It’s also important to keep up on the news related to Bitcoin prices: if there are any major changes in some country’s official stance on cryptos, or if a big company like Amazon announces plans to support cryptocurrency payments, these could affect prices significantly.
If something like this happens in your area of interest – or even if it doesn’t – you should try not to panic. Instead of focusing on whether or not something will drop further (which may just cause more stress), focus on what opportunities there might be right now so that you can make informed decisions about which cryptocurrencies or trading platforms are worth investing in now and which ones aren’t worth worrying about until later
5: Remember that volatility is the name of the game
The crypto market is known for its volatility, which means you should expect the price of Bitcoin to go up and down. The best thing you can do is keep your emotions in check and remember that this is normal.
There are two main strategies investors should employ when dealing with a downward-trending market: buy low, sell high; or sell high, buy lower.
If you’re looking to invest long-term in crypto assets, then keeping an eye out for those dips (or even taking advantage of them) will help you weather any stormy seas ahead.
6: Evaluate the future
A good investor is often a step ahead of the game. Think of it like this: if you were going to buy a car, you would do your research, make sure that you have the money to pay for it, and then find out how much money you need to save up so that when the time comes, all your ducks are in a row.
You’ll also want to make sure that when things go south, and Bitcoin’s price dips below what it was when you first invested in it, there is still some kind of plan for how much time and effort should be put into finding another investment opportunity before giving up completely on cryptocurrencies altogether.
Overall, the best thing to do with your money when the price of Bitcoin drops is to stay calm and try to put it in perspective. It’s easy to panic during these tumultuous times, but if you do, you might miss out on a great opportunity.