Holding cryptocurrencies needs serious nerves at times
Sometimes the markets react extremely to news that is over reacted to. Case in point, Digibyte. Yesterday Digibyte took part in a competition by Citi Bank. They made multiple connections through out the industry and the future is looking better. How was this news taken? Well it wasn't. Instead the markets reacted to Digibyte not winning the demoday award. This resulted in a downward trend which seems to still be taking place.
Digibyte still has the chance to win in the competition, the main prices are still up for grabs. However, it really does not matter. Of course if Digibyte would win, the price should probably pass Ethereum right away, but anyone investing in the currency because of the slight chances must be very inclined to bet their money on anything that moves. The real win was to get to the finals in the competition and gain important connections in the field. That is what will eventually lead to great things for Digibyte.
The cryptocurrency market is very fragile. Anything that can be interpreted in anyway can have serious consequences. If I were to say that someone lost their money trading Ethereum and could prove it, that would probably cause Ethereum to take a 50% downward spin. Which is just ridiculous. Again, I will emphasize my main point in cryptocurrency trading, invest in currencies you believe in. Not in things that happen during one day. If you don't you will inevitably loose money unless you are lucky. But if that is the case you might as well go for the lottery, you'll do as well there, why not invest a 1000 dollars? (Please don't, this is very bad advice).
Anyway, when serious down trends appear in currencies you believe in, you are left at a situation where you need to decide if you can keep your nerves or not. It can be extremely hard at times. When all you see is red, as in the price going down, your emotions want you to act and panic sell. Panic selling, however, is just likely to loose you money. Therefore, what I do is I except the loses and look at the future. I except that it might take some time to recover from the loss, but before I sell, I am not actually making any losses. The loses become a reality only after I act on them. Here it is important to make the distinction between market value and real value. Market value being what people are willing to pay for it currently.
This post is my way of coping with the emotional backlash of seeing a heartbreaking decline of Digibyte. However, I am not giving up on Digibyte. I've been holding it since 2014 and will continue to do so. The development team has been doing amazing work since the beginning. This down trend is probably just inevitable after so huge gains in such a short period.
I totally hear ya, another shining example is the recent tweets a day or so ago from Mr KnowItAll Cuban regarding Bitcoin and how it put a damper on bitcoin and seemingly the entire market.
I haven't paid much attention to Digibyte, I'll have to go give it more of a look. Cheers!
True that. Have a read on my earlier post about Digibyte to get an overview of it, if it is unfamiliar to you. It is a non-technical analysis. Although the technology involved in Digibyte is also really up-to-date. That is just harder to comprehend than the non-technical aspects of why Digibyte is a good investment in my opinion.
Thanks, I'll go find it 👍🏻
I definitely can relate.. It was sad to see DGB rise so high only to fall back down. I ended up selling off a big portion of my holdings but plan on getting back in soon. DGB is such a great undervalued coin in my opinion and we haven't seen the last of it. Upvoted and followed. Checkout my post on DGB I made the other day when you get a chance. https://steemit.com/cryptocurrency/@stacking9mm/digibyte-is-blasting-off-all-the-way-up
Thanks. Hopefully you will be able to buy them back before it rises back. I'll have a look at your post.
I agree. Holding onto something that's falling apart needs some serious balls. It's frustrating how people dumped it just because the team didn't win.
Yes, but luckily this can be seen as an opportunity to buy more, and also gives a break for Digibyte to build up to another spurt.
I'm holding my DGB and hoping for the best!
Me too. I don't see any reason why it would not go up eventually. Other than extreme shortsightedness or that the development team runs out of funding.