3 Things We Can Learn from the Slump in the Price of Bitcoin
Concerns about the corona virus COVID-19 turned out to cause panic in the cyptocurrency market or digital currency. This panic has made the price of Bitcoin plummeted and valuations evaporate billions of dollars overnight.What can we learn from the drop in the price of bitcoin to avoid loss when bitcoin weakens?
1. No Need to Panic Fear of Running Out
One of the things that can get bitcoin investors into a loss is too brave in buying bitcoin for fear of running out. This can be detrimental if the value of bitcoin suddenly drops. Therefore, you should consider an investment strategy before buying bitcoin.
2. investment with Other Cryptocurrency
Bitcoin is indeed the most special crypto currency. The first crypto currency made and the most popular. However, it's also good if you are interested in investing with bitcoin, try to invest with other cryptocurrencies, which can be exchanged at any time. So the loss you might receive when the value goes down is not too much.
3. Always Update News
Bitcoin does not crash without cause. There are various factors that cause the price to plummet. We will discuss the factors that can make bitcoin plummet in the next post. Now, by recognizing the factors that cause the drop in bitcoin and always updating news about bitcoin, you can take a smart attitude before experiencing a big loss because of a bitcoin crash.
The news in question is about the development of bitcoin in various countries, new regulations about bitcoin, and anomalous events that have an impact on bitcoin volatility.
Those are 3 things we can learn from the drop in bitcoin. As we know, bitcoin and other crypto currencies do have very high volatility. Someday the price of bitcoin will definitely increase and decrease again. So, users need to make strategies so they can benefit. What do you think?
Unless you are a savvy trader, hodling is the best way to go.