Is there a silver-lining after this crypto-market turmoil?
Pro-Bitcoin Wallstreeters got a load of optimism… Maybe it’s time to adopt some gameplan.
Risk Management Is a Must
Most of the speculators who engaged in Bitcoin have the balls of steel — willing to stomach tsunami-like volatility. But this is not the recipe of winning, without Risk Management plan will likely to lose in the bloody market.
Without Risk Management, retail traders often suffer a significant loss because they are unable to handle an 80 to 90 percent drop in value and are forced into a position to liquidate their holdings.
A study shows that 22% of the Bitcoin Investors actually borrowed their money for trading. This is a mortal violation of the golden rule, “Invest only what you can afford to lose”. If the market goes wrong, you will end up losing you trades and leaves you in debt. The consequence is not gonna be that merry. Identify the risk and provide a pre-emptive plan in both directions.
Ultra-Instinct: Control your emotion.
The unregulated market is the best playground for manipulators. We have seen Bitcoin died 336 times and counting and it defies ATH with its resurrection. In a bear markets scenario, you can read countless articles talking about the “Downfall of Cryptocurrency” in every biggest news outlet. Adding fuel to a fire makes it hotter that every emotional trader pays the price. The same situation applies in bull markets where the emotional trader will likely to FOMO — you know the outcome.
Be a cold-hearted investor; neither panic sell nor FOMO will save your investment.
Learn something from Billionaires
Mike Novogratz, Jim Breyer, and Tim Draper are some of the traditional market prodigies who boosts optimism in crypto-space. I’m not saying these guys are correct all of the time but the ‘pinnacle of success’ that they got makes a lot of sense.
Bubbles and Market Crash aren’t new to them. They have gone through many cycles riding the trend like a boss.
Financial Institutions continue to build confidence in crypto-space by strengthening the infrastructure surrounding the asset class. NYSE, Nasdaq, and ICE are the main culprits for this innovation- bringing closer towards Wallstreeters and Institutional investors.
Waiting for the day of resurrection…
The 2013 Bubble and 2014 Mt. Gox Disaster are the longest markets recovery that lasts 62 weeks having an 87% decline from its peak price. This will not guarantee the longevity of the market recovery but it gives us a hint on how the market behaves during its crackdown.
If we are to base this longevity of the current turmoil, this crackdown will likely to last around Q2 2019.
Whether you uphold the perspective that Bitcoin is nothing but a niche or maintain that cryptocurrency and by extension Bitcoin are now an indelible aspect of the financial fabric of society, it’s definitely worth considering the extremely fast drops in value and equally fast recovery the currency has experienced.
Will Bitcoin recover and defy its “all-time high” again? Only time can tell…
