How to spend your cryptocalypse?
It's not 3 days ago that I was writing about risk-management, when we got hit with the worst downtrend in recent memories.
Oh, boy, it started like any other, a little fall on the market, all coins being dragged down by our big brother: BTC!.
Nothing to worry about, right?
BTC is known to be a tad temperamental, he has his issues but usually doesn't go up or downmore than 5%. Not this time.
THIS TIME IT WAS SERIOUS
In 12 hours everything was down, and by a lot. How do I know that?
Simple: My Blockfolio looked kind of like that.
)What can one do in a time like this?
It's a pretty interesting moment because it's like a test. All your assumptions can be - and are- under fire when something like this happen. I've seen people who can't take the heat and sell. In fact, probably most people panicked somewhere down this downtrend and jumped ship.
For example on the ETH graph the balls of everyone ( men and women, the market does not discriminate) have been tested repeatedly.
It's hard hodling against a see of trouble....
What's funny here is that serious publications published articles about how all this ETH crash was dude to a hoax, that people believed Vitalik to have died. A bit morbid for my taste but after he posted his proof of life tweet [ haha ] and the market...DID not recover. Come on,guys!
A little more serious reporting on crypto could be a good thing. Maybe? No? Oh, ok.
I am new and this my biggest market fall that I personally experienced. More seasoned players already been through this, couple of times even. I was a bit distressed and felt a little depressed to be honest. But I did not panic sell anything yet. I don't see the reason yet as the ultimate dream is to NEVER sell crypto.
But that will take a while to achieve. The reality is that crypto is all speculation and faith. It's a bit of a long con for now, one that we hope, soon, it will turn into a solid thing. We are not there yet, anyone who is into this space MUST realize this so sometimes, when the market falls like crazy, you can wonder if time has not patience anymore for your little faith to turn into some resemblance of reality.
But it's not a "little faith". It's a lot of communion faith. Still, this was to be expected, nothing can go up forever.
As always, the smart money bought, played the swings and probably will get out of this richer. It's the way things are.
I hope everybody understood why we call crypto by its second name: volatility and why, diversification in other coins is worth very little as there is still a very hard and real coupling with the btc. When it went down, they all did.
[ *NOT SBD though! Oh boy that coin is a trooper! ]
In other news, EOS managed to raise 50million dollars in its first 2 days, even on the background of this major fall. IF the market recovers, that number is bound to get even huge. Another 3 days left for the initial big batch of EOS to release. The #FOMO was real! But, people, seriously...have a little patience. There's no fomo necessary here! We have a whole year to get into this. Congratulations, Dan! Please don't break all the toys in the process.
By tonight, the market seem to have recovered a bit. It might just be wishful thinking..
As always, I'm interested to hear your thought about all this, especially if you are a more experienced trader or in crypto for a looong time. Shoot me a comment.
r
here are my thoughts from yesterday.
https://steemit.com/cryptocurrency/@hackerwhacker/todays-crypto-crash-dont-panic-yet
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If you're not actively trading, don't even look. It's fake euphoria when you watch the price go up, and fake panic when you watch it go down. The end result is very real, of course, and the stress can't be good for anyone.
This was bound to happen with how fast the markets moved up, and it's a good thing, lest we be dreading it forever.
It took "losing" hundreds of thousands of "theoretical dollars" before I just stopped caring almost entirely. If you're holding, not trading, then the price only matters on the days you buy and sell, and usually those are pretty far off.
Very good comment and observation. But the pull of checking the price is too strong....
Had to delete blockfolio in general. It became an addiction hehe.
:)) if you look at my history you'll see that I wrote a bit about that.
My secret is to have very very few alerts. It's the alerts that reinforce the addiction!
It's very tempting. You probably will only pull it off sometimes. Eventually your emotions will get numb to the ups and downs.
It's more like an adventure to me :)
Yeah, I can't stop looking. But I like to trade and want to get better at it.
Dude this is nothing. I bought BTC and LTC at $800 and $20 respectfully before the Mt Gox fiasco. I watched BTC drop below $200 and LTC drop below $3 and sit there for years. I wasn't sure if I would ever recover that money. Fast forward a few years and both hit ATH's or close to it. Point of the story, I believe in crypto and I'm not cashing out anytime soon. Take the dips as new entry positions. Just think of it as items going on "sale." Corrections in the market are also natural and prevent bubbles, unlike the stock market which doesn't seem to ever want to correct...that could be another story.
are you kidding? nasdaq finally got back to yr 2000 levels just now. 17 years of correction.
S&p 500 been correcting also for about 13 years
No I'm not kidding. Dow Jones hit an ATH around 21535 in June. As for the the Nasdaq...that was in a major bubble from the dotcom era.
I like you confidence. But you need "balls" to do that.
balls of steel. more or less did much the same.
Indeed, as @pbgreenpoint says, this is nothing. It is only a natural correction, which at the same time is preparing for a slingshot forward to the next planet in our solar system. ^_^ Hold on to your crypto, and/or buy more!
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Saturn? :))
For starters! ;P Saturn, and from there on a short bounce on Pluto on its way to Andromeda!
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This is the first major crash in which I haven't sold anything. I got into crypto years ago and I panic sold at every 10% drop and that's how I lost it all - well, that and the cherry on the cake that made me quit it altogether was 2 exchanges going bust with my funds on them.
This time though... I watched an overnight $7.5k drop in my portfolio with just an annoyed look and some mumbling.
Hands were steady though and no holdings were harmed in the process.
Well done for being strong, we'll get our rewards later!
:) that's a really cool view on the subject. Would you say that experience helped or your faith in the recovery was stronger than your fear?
Both I think.
Back then I had no faith in the alts, I was just trying to get a quick buck, didn't really care what they were about. Bitcoin for me was mostly a way to get stuff from the darknet :D. I had no experience or patience either.
Now, I understand that most alts are like companies in a way and the future is on the block chain. I also have a better understanding at how little marketcap cryptos have in the grand scheme of things. Also, now I have no fear really, I lost it all before, never had this much though to be fair. I just hope some of my bets will pay off big in a few years; got a couple of holdings now that are earmarked for paying off my mortgage :D
:) Hope will look back on this and smile on how right you were
Lessons learned!
Crypto is the most volatile market going!
I've been through my fair share of these crashes. The first major one I experienced; making the mistake of selling at the bottom. That was a painful lesson, but a necessary one.
There will be many more dumps to come in the future, some far worse, no doubt, so get used to it people, and learn to either position yourself accordingly through hedging and diversification, or get used to practicing the art of hodling, whilst being emotionally dead inside.
Better yet, learn technical analysis, to give yourself the best chance to play this market to your advantage.
I was buying the dip personally.
"whils being emotionally dead inside" :)) that's perfect. thanks for stopping by yogi! Long time no talk, hit me up on chat when you can.
I learnt the hard way that emotions & trading really do not mix very well at all. Now, the pain and sometimes torture of crypto, is a familiar friend - we get through the tough times together, only to be stronger for it, on the other side.
I'll drop by the chat later bro. There's a lot to talk about, it'll be great to catch up :)
:) great.
Bitcoin has had its fair share of "all-time high/crash" cycles, this probably won't be the last one. On the long term the trend is defintiely upward, and given the market cap the growth potential of cryptos is still enormous. "Invest only what you can afford to lose" is not some dumb moto, it definitely helps you be patient and not panic when stuff like that happens.
Some treat it like a dumb motto indeed.
I think no one thinks it "them" who will lose the money...
This recent bloodbath scares the hell out of most of the traders specially short term traders. Even I started to feel a bit panic to see 20 billions going out of market. Just check half hour back and it was sigh of relief to see 10 billions coming back to market.
it's all make-believe though until you actually do something with your own coins...
Absolutely great article! I wrote an article yesterday about the best ways to protect your portfolio during these downward trends. I fear that a number of new traders were too diversified or in the wrong coins and got spectacularly burnt.
I am very tempted to get in on EOS but I resent getting in on the ICOs. BAT dropped a huge amount a week after it hit the exchange. Anyone on who waited could have picked up a lot more than they would have done in the ICO; I'm tempted to wait it out until it hits the exchanges. I heard Bitfinex is adding it on the 31st.
If you ever wanna chat crypto hit me up my friend: @jhcooper7
Not all ICOs are bad investment though! With EOS running for one year...there will be a very interesting dynamic between exchanges and the daily auction. It's fun to follow :)
Will do! thanks.
Great job, thanks for the info, keep updating us on the issues.