Before we get into this post about your crypto investments we should make one or two things absolutely clear. The first thing to say is that we do not give financial advice, your investment is yours alone and it will be up to you what you do with it based on your own set of circumstances. The second point to make is that we, like many of you, can only speculate on the market.
There are financial experts who you can always pay more attention to than us, who know a great deal more, people like Robert Testagrossa for example.
With this being said, we are going to explore a few reasons today why pulling the plug on your investment may not be a good idea, at least not yet.
As crypto begins to see quite the crash, we have to remember the golden rule of any investment strategy. This is that you buy when the price is down and sell when things are going up. Unfortunately however because crypto can be so volatile, we so often see things happen in reverse. The reason most lose money is that they panic sell when things go down, and then FOMO buy when things go up.
Long Term Strategy
The only people who really should be going into crypto with a short term strategy are those who really have the nose for trading, which doesn’t include the majority of us. For those who have researched this new digital currency however, they will know that this is a game for the long haul, not for the short term. This is why you shouldn’t panic if the price plummets, because in realty most indications are that things will be growing hugely in the coming years. If you don’t agree with this then for sure, you may wish to take your cash out and invest in something else.
Not all crypto coins are going to be here forever, and many alt coins will crash and never recover. This is why if you do wish to get out of some of those alt coins that you have, the best advice may well be to move those funds into something more long term such as ADA, ETH or BTC. These have a far better chance of doing well long term, where as those alt coins may not.
It’s What They Want
Sadly much of crypto is still controlled by whales, those with huge holdings who are able to push the market in one direction or another. These people eventually will be diluted with more investors, but until that time we should look to hold against the sway. These whales love the fear factor and love to see small investors sell, because that means they can scoop up huge amounts of crypto at bargain basement prices. If they are still buying at those low prices, then you should still be holding.
Remember that this is not financial advice, just some speculation on the state of affairs as it stands.