Crypto Current Affairs—How To Deal With Cryptocurrency FUD!
The recent bloodbath in the market has caused quite a stir once again. If you bought Bitcoin or any other cryptocurrency at the top, I'm sure you've got a bad feeling in your gut right now. Everything in the market has been on a dive since the past few days and the market seems to be braving a rough storm!
FUD—"Fear, Uncertainty or Doubt" is often witnessed in these times. When market rallies upwards we often witness a major hype which causes our small crypto market to surge. The moment the market starts correcting, every skeptic and their uncle starts FUDing causing panic amongst smaller investors and especially noobs in the crypto market.
In a traditional and regulated market such as stocks there are strict rules against releasing false information that could potentially cause huge upward or downward swings. But given that there are no similar rules governing the crypto market with multiple exchanges and low liquidity, it's easy for large players to influence the market to force it to move either ways.
Bitcoin as we know has the largest market cap today but it's liquidity is nowhere that of a FIAT currency such as Euro or USD. So if a large investor decides to buy or sell 2$m worth of bitcoin it can easily cause a spike in the price and if someone sells similarly large amounts quickly it is likely to cause a crash.
A seasoned investor/trader knows this and they usually buy more when the price tanks to the floor and this allows them to mitigate their risks and profit sooner when the price retraces.
The recent upward swings has caused many people to cash out their profits so we're likely to see the markets swing with greater than usual volatility for sometime. Most often, FUD also results from criticisms labelled against cryptocurrencies based on inaccurate or misleading information.
Bitcoin crashes are commonplace in the crypto world. It has happened several times before, and is likely to happen many times in the future. Being the largest crypto in terms of market cap it pulls everything down with it. We're now seeing this with Ethereum as well. Nothing surprising here.
I've seen the panic on crypto groups on FB, on Steemit.Chat and other places where users have reached out to ask if they should sell their Bitcoin/Altcoin holdings to cut their losses or hold on. You will see FUDsters everywhere, even here on Steemit!
Therefore, it's important that we only invest what we are willing to lose 100% in crypto. Crypto is still not the place to put in your entire life's savings for a quick short term return for most of the users.
Keep Calm and Deal with Crypto FUD!
- Information is key to being successful. In the world of online cryptocurrency trading, obtaining the right information is the difference between making a profit or loss. Learn to separate the false news from the truth. You can know a lot these things by participating on various channels of communications related to your desired crypto and learning to wade through the BS to find the correct information.
- Unless you are in a financial emergency, try not to panic sell during a bear phase. It's likely that the crypto you are holding will retrace after a crash. Example, today Steem hit $0.99 and if you sold it thinking it would go below 90 cents you'd have lost the opportunity to buy more at $0.99 and at the time of press its at $1.20 already. Anyone who trades the market can be opportunistic and learn to read the charts for greater chances of success. Trade wisely.
- Cut the noise! It's important to ask feedback from the community. But if you ask too many people you will get far too many different advice and this will stress you out. Ask 1-2 top traders or known investors who seem to have better knowledge about the market movements and could offer some decent advice. If not, simply avoid seeking advice. If you post on a Facebook group asking what you should do, even a real life milkman will appear, pretending to be an expert offering you incredible trading advice. Listening to such people will result in losses. No one can predict the future, at best you can simple prepare for it. Keep both your ears to the ground.
- If you are a noob then you might want to read @connecteconomy's article, 'Going from Noob to a Whale in 4 Minutes' to better understand crypto terminologies and move onto basics of charting and trading.
- FUDing is commonly seen everywhere and on all social platforms. So proceed with caution and grow a thicker skin to brave the markets when they are in a seemingly unstoppable dive. When the mice scramble, men rise!
From perspective of Steem crypto, remember we've seen the floor at 7 cents and we've come a long way from there. Use this opportunity to post more and enjoy a relatively greater distribution of Steem when the price is on the lower side.
Good luck to you dear readers!
Disclaimer: This is a personal opinion and should be treated as such. It is not a trading/investment advice. Cryptocurrencies are subject to market risks. Only invest that you are willing to risk.
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Woohoo the market is on sale! Do I get free two day shipping with Amazon Prime in this sale as well?
Would be great if it did! haha!
Thank God i was out on 11th june so none apply on me. "The recent bloodbath in the market has caused quite a stir once again. If you bought Bitcoin or any other cryptocurrency at the top, I'm sure you've got a bad feeling in your gut right now. Everything in the market has been on a dive since the past few days and the market seems to be braving a rough storm!"
I think everyone agrees that the prices will come back - it's just a matter of when. So why not take advantage of all the sale prices?
@altcointrends Well said! Absolutely right!
You said it! I see this as a great buying opportunity for Steem crypto and Ive picked up some more! :)
Steem, Bitshares und Peerplays ist de best.
yeah!
Zebpay is sending me notifications every few minutes, and if I had no experience with the Share Market, I would have been worried to death.
And as you said, invest only the amount which you are ready to lose, the amount that I have in Bitcoin is very small, and I can forget about it.
Every Cryptocurrency is on a fall today, and I already see many newbies selling their holdings. Let’s see, I will try to post more here and see if I can earn more.
Thanks for sharing your views.
Don't worry about it. As you may have noticed in a week markets are starting to change course again! :) What goes down, generall tends to rise back up again!
For a moment I gave in and almost made the Sell call on my Zebpay and other cryptocurrencies, but then I decided to hodl for a bit longer and saw the bar raise high.
Im in this for the long haul and after seeing Steem go to 7 cents, nothing scares me anymore hahah! :D Altho Im pissed I missed the chance to buy steem at 7 cents lol
@firepower the tag to connectedeconomy is not working, seems you made a mistake. Please tag the correct person.
Thank you so much for highlighting this error!
It's good when FUD happens, at least you're able to buy up a lot of cheap Steem at that point and make the REAL money ;)
Agree with you buddy :)
hahaha yes! That's what I've done! :D
People just need to stay positive, and fall on their backs, because if they can look up, they can get up!
Keep moving forward and stay consistent.
I cover some life-changing topics in my content that I create. Including one of the recent posts about how to overcome any market condition :) If you are looking for something more out of life, then you may join my Success Team by engaging in the content :)
Wishing you all a great day further. Stop worrying about the markets, just chill and move forward. The patterns on price are always back and forth. Every up has a down, and vice-versa. Cheers. Talk soon :)
Great words! You said it man!
@firepower you are killing me with this post! FUDing everywhere! I heard so much FUDing today over this surge downwards. My investments took a little tumble today but luckily, like you advise here, I put my money in knowing the risks and therefore try not to worry too much about it. It is interesting though how quickly a surge can happen. I really appreciated this- especially today after watching my brother lose his mind at the computer screen for hours :P
Thanks for the post, I am always learning new things from you!
XO,
@heart-to-heart
haha I hope he's okay! :D
I see this a lot over the past year especially since I've been on Steemit! It is great that the market seems to be turning around once again now and I hope it sticks to being in an upward swing for a bit. :)
An upward swing would be really nice =D haha
Good article. This is true. There is a lot of people spreading FUD around the cryptoworld. It is further complicated by the abstract nature of cryptocurrency investing and the fact that, like you said, one person or group and drastically affect the market, which is not regulated for such, or anything else.
I'd like to tell people to buy now, but I don't give advice for legal reasons :) However, I like to tell people how they can make decisions for themselves and explain to them how to make them. I'm always trying to write articles here when these "red days" appear and calm people down.
However, my influence is very limited. But I think the steem price might be rather stable also, because many people here share good information and someone involved with steemit is likely to find good information from the service itself.
The current price decline seems to be mostly affected by bitcoin, the BTC/Steem price has not declined nearly as much as the dollar/steem price.
Excellent comment and I think quite the same. Steem as a project is very superior but it's unfortunate that it gets pulled down along with others for no fault of its own. Wish people didn't dump their Steem mindlessly in panic!
When the markets are down, just switch off and go on holiday with the profit you have made already. Helps to it out of your mind!
That works great as well! I tell the same to anyone working and panicking!