the big fall
Greetings to all the community I hope you are well and in good health, I know that this market crash affected your investments and in many cases affected the level of income, but you should not worry this market crash is just one of the cycles that has lived the crypto world, in this article I will tell you my opinion about the great market crash I hope you like it and you can leave a comment.
Both the fiat market and the cryptomarket suffer from cycles where they first have a rise in the value of their assets and then have a big fall in the value of their assets, these cycles are part of the market, do not try to guess the reasons. trying to know what drove the market down or up of a digital asset, from my point of view is a waste of time as the real reasons are usually not shared with the general public.
Now, if we cannot determine when bull and bear cycles will occur in the markets, what we can do is to establish an action plan that contemplates the different scenarios, it is essential to concentrate our mental energy in developing a financial plan that allows us to capitalize our investments when the market is rising and also allows us to resist the moments of anguish when the market suffers large drops.
A well elaborated financial plan must take into consideration the market collapse, fall in the value of your assets and hard times, all this to keep us balanced while prices stabilize, now when prices are stable after a down cycle we can take advantage of the low prices and increase the level of our investments.
A financial plan is what makes the difference between taking advantage of a bearish cycle and panicking when we see our investment portfolio drop in market value, right now with the big market drop many people are wondering the reasons that led to this collapse instead of wondering how to make a well thought out financial plan that will allow me to capitalize on this financial drop in the crypto market.
Human beings are creatures of habit, that is, according to a certain stimulus, they will have a certain reaction, this can be better understood by looking at all the people who are currently panicking when they see a market drop after the market corrects and an uptrend disappears, these same people will be overpowered by the euphoria of a bull market.
as I mentioned before that people are used to repeat patterns of behavior the only way to not be one of those people that repeats a wrong pattern of behavior is to have a plan that will guide us in the decisions that we should take when the market is down and also when the market is up.
If you do not have an action plan is a good time to start one, in my opinion you should not waste your time trying to understand the reasons that led to the market collapse because that will only waste your time, it is better to evaluate your action plan and correct everything that needs to be corrected so you can take advantage of the next bull run.
In conclusion, the big market crash is one of the many falls that the cryptocurrency market has suffered, which seems to be dominated by cycles of upward and downward trends, a good example is to imagine the world of cryptocurrencies as if it were the sea, sometimes the sea will be calm and others will have aggressive storms, a financial plan is a lifesaver that will allow you to keep calm in difficult times so do not expect to be in a crisis to evaluate having your action plan. I hope you like this article, I wish you have a wonderful day.
created by : @trabajosdelsiglo
Hello dear @trabajosdelsiglo, your advice seems to me excellent, you should plan a financial strategy that allows to maintain the balance of finances when the markets are bearish, because, sometimes we can find ourselves without liquidity because all our money is invested in crypto and in these falls would be crazy to sell our cryptos.
See you later, have a great week.
hello @amestyj ,
that's right, a good financial plan always allows us to be balanced.
Hi @trabajosdelsiglo the different upward and downward trends of the market certainly implies us to think about a financial plan, the importance of the financial plan is quite noticeable insofar as it allows: Establish the economic resources necessary to carry out the business plan. Determine the real costs of the global economy, production, sales and administration costs.
hello @aplausos
at this time many people are in financial straits and that is because they do not have a guide, thank you for your valuable comment.
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A good point you have made people focus on why market crash and never cease the opportunity of capitalizing on the market fall i must admit this has been a very good lesson well learnt.
As crypto investors we need to understand the crypto cycle the dump and pump cycle and plan on taking good advantage of both cycle with our spare stable coin savings
hello @ mccoy02,
that's right, market collapses are only a matter of time before they happen, we should all be prepared for those collapses. thanks for your comment.
Dear @trabajosdelsiglo
Indeed. We had money printing (which pushed markets upward) and now we're witnessing inflation, which is causing interest rates to increase.
I remember one small conversation I had just a couple of weeks ago with a friend of mine. We talked about BTC rebounding. It had reached 45k at that time and moods between investors and youtubers were growing.
At that time I've mentioned, that part of me expect another solid crash before markets will really start to recover. Part of me expected that 30k support level need to be re-tested at least one or two more times.
Currently, I'm more bullish than I've been back then. After all: news about war and sanctions towards russia couldn't bring market dowwn below 30k and LUNA collapse resulted with drop below 30k for a short while (volumes increased enormously, which is a good sign).
It's really difficult for me to imagine what kind of news would be needed to bring markets even to lower levels. It seem that even such a terrible news (war, luna collapse) were not "tragic" enough. In other words: it seem that spreading fear and making people sell their crypto (panic mode) is quite challenging already. And that's a good sign of upcoming recovery.
Cheers, Piotr
you are absolutely right, this market crash was necessary, in my opinion as we get closer to the maximum amount of BTC that can be extracted we will have more events in which the big whales will spread panic in order to compare BTC at low cost.
on the other hand getting people to sell their BTC out of panic is quite difficult, as people become more informed and use BTC they understand its value this makes the news that seeks to spread panic not have as much effect on people.
thank you for your comment and for all your advice, you are a great leader for the community.
Thanks for getting back to me @trabajosdelsiglo
My personal view on current market condition is as follow:
Truth be told, I consider current crypto market to be super strong. And pretty much wiped out from so called "weak hands". Even horrible event as War between Russia and Ukraine (followed by global sanctions against Russia) didn't crash the market. It just brought it to 30k levels.
Now as awful and tragic news related to LUNA (which sold thousands of thousands of BTC in their attempt to protect UST peg) also only brought this market to around $30k levels. It seem that every BTC which goes beloww 30k is being "scooped up". And it's only harder and harder to bring enough fear and panic to push more people to sell.
Based on my limited experience: whenever we reach level of total fear, then we're near the bottom.
So overall, Im very optimistic about future of crypto market.
Cheers, Piotr
I couldn't agree more, and I must admit that I wasted a lot of time looking for the reason for Terra's collapse which is something I have nothing to do with simply because I was not an investor in LUNA nor in UST
Thanks for the nice advice...
hello @qsyal,
many of the reasons that lead to a collapse are never revealed to the general public, that's why trying to guess is something I don't think you should waste your time, my dear friend, thanks for the comment.
Hey buddy, every smart trader is expected to have a good financial plan, these financial plans will surely help the trader avoid some unexpected troubles while trading, even if understandably, the market can play anyone, a good financial plan would certainly limit risks to a reasonable extent.
hello @@@gbenga
you are so right, thanks for reading and commenting it is always nice to see one of your comments.