The Crypto Market Dip — What do I do!?
As many of you are aware, the crypto market as a whole has taken a rather drastic decline. But we’re about to explain to you why you shouldn’t be worried.
Reading through many headlines, social media posts and new articles regarding cryptos taking turn for the worst is understandably very daunting. Especially for those who invested heavily into the crypto space.
However, is it really all doom and gloom?
No, it’s really not. Didn’t your parents always tell you to not believe everything you read?
Actually, it’s a great opportunity to start buying. Yes, you may have already invested everything you have (HOLD!), but for those who are looking to get into cryptos, now is the time.
Remember, the crypto market is like any other. Prices are expected to fluctuate rapidly with little to no warning. Yes, arguably with the stock and commodity exchanges it’s a little easier to manage due to lower volatility, but then again, predictions can never be guaranteed. There is always an element of risk attached with investing.
Okay, great, but why shouldn’t I be worried?
As the crypto market drops, it’s a perfect time to start accumulating that coin you’ve been watching for the past few weeks. While everyone starts panic selling, start buying. How do you think people become so wealthy from cryptos or even the stock market?
They wait for crashes within the market and look for those dips to buy in. While everyone is selling, making what little profit they can, long-term investors are building their positions. Making profit on those that are losing out.
Crypto values are created against the supply vs demand. When demand is high, the value increases. As supply is unable to keep up with demand, the price increases further. As it peaks, reaching an all time high, holders begin to sell. This therefore puts the supply above the demand, meaning there is more supply over demand. Decreasing the value.
Stagger your trades. Don’t go all in at a set value, aim to reduce your average buy in value, over a period of time. Once the volume of supply starts to decline, the value will again being to increase — all while you are there, holding a bag.
How can you be so sure the value will increase?
The crypto space is only really starting to gain traction, it’s still in its growth stages. Many countries, businesses and even governments are turning towards cryptos to resolve their issues.
Due to extremely high inflation rates, many countries within Latin America have turned to crypto as a viable source of currency. Many retailers have begun accepting cryptos as a form of suitable payment, leaving highly inflated flat currencies in the dirt.
Bitcoin is the gold of the crypto space, as there has been so much speculation on the future of its value and worth. But time and time again have people got it wrong. Back in 2011, highly influential people within the crypto space estimated the end of Bitcoin. The same again happened in 2016. Boy, were they wrong.
Now that’s not to say that Bitcoin will maintain its position as crypto gold. Ethereum is on the rise. Could Ethereum match or surpass Bitcoin? Could silver over take the price of gold? Silver is becoming in shorter supply, so it’s possible. But these are conversations for another time.
I guess that the point here is, nobody knows what’s truly going to happen, however many people will speculate and guess. All we are saying is to look at the trends. Year after year the crypto market drops around this time, and it has always bounced back stronger.
We are not legal or financial advisers, we are not telling you what you should or shouldn’t do. This is purely an opinion piece based on experiences of being involved in this market over the years. You should still do your own research. Don’t be a sheep and follow the crowd, make your own judgements.
