Cryptocurrency Markets are Selling Off - But Don't Panic!

Updated: Sep 1, 2018

Most of the cryptocurrency markets continued their sell-off Thursday night and into Friday morning, but at 8:00 AM EST the markets moved higher with Bitcoin gaining $770 in 5 hours. Since then the markets have for the most part been moving sideways. In my opinion, it's very possible Bitcoin may dip again and retest the $3000 level at least one more time before hopefully moving higher. So what will the markets do next? No one knows, we can all speculate about where we see the markets heading but we can never know for sure until after the fact.

It seems as though there has been a lot of panic in the markets the last week or so. Whether it is because of negative news coming out of China or some noteworthy person claiming that Bitcoin is a fraud, it doesn't really matter. The history of cryptocurrencies has been one of extreme price volatility, you get big run-ups followed by big drops. If you are going to invest or trade cryptocurrencies you have to expect it, and if you are trading cryptocurrencies you should welcome it, after all, that is how you make money trading.

If you are investing in cryptocurrencies for the long term (years) then this drop should be welcomed as a great buying opportunity! My opinion is that long-term investors should not be selling and should be only buying when we have price drops like we have seen over the last 1 to 2 weeks. It's never easy to watch the value of your portfolio keep dropping when we have corrections like we just experienced. If you are a long-term investor the best thing you can do is walk away and only check prices occasionally.

The very worst thing you can do as an investor or trader is to allow your emotions to dictate your buying or selling. Remaining completely unemotional is extremely difficult if not impossible to do, it takes years of experience in the markets to condition yourself to remain calm when things go against you. Unless you are day trading, whether it is stocks or cryptocurrencies you are better off not following the markets too closely. I have been involved in the stock market for over 10 years and day trading for about the last year, yet I still have times when I have to fight my emotions to keep me from doing something I would regret.

I am sure many of us have heard horror stories of people who lost huge amounts of money during the 2008 - 2009 financial crisis. Unless they were invested in a company that failed, the most likely reason is that they panicked and sold at the bottom. For most people, if they would have just held onto their positions, they would have made back all of their losses and then some. Don't be that person! The one who sells at the bottom then is too afraid to get back in until it is too late and the markets take off without them. If you find yourself getting emotional, take a break, go for a walk, do whatever you need to to keep yourself from making a big mistake.

Trade and invest smart, not scared!


Until next time,

Take care!

BigskyCrypto

info@bigskycrypto.com

https://www.bigskycrypto.com




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