The Markets are Red - It's the Best Time to Buy!
Don't miss out on the huge discounts in the summer cryptocurrency sales!
Introduction
It seems we are currently in a large downtrend in the cryptocurrency markets and people who are new to this are becoming very anxious.
I have written about this issue before but it seems that people still make the mistake of panicking and selling whenever there is a dip in the markets.
There is a tendency to look at whatever is going down and start selling it to buy more of what is going up.
If nothing is going up people start trying to cash out into fiat.
This is what I call the "panic sell trap".
Before we move on I should make it clear this post is based on my own personal opinions and does not constitute professional investment advice.
There are no guarantees in any markets and you should only ever invest what you are 100% comfortable with losing.
Why It's A Trap
It's a trap because (assuming you invested in a sound project) you will regret it later.
Why?
There are no guarantees but the general trend for (legitimate) cryptocurrency projects is upwards.
If you invested in a genuine project then when the next uptrend comes it will start going up too.
To make a profit you want to buy at the lowest price you can and sell at the highest price.
If you buy on a high and sell on a low you will be reducing the potential holdings you have and hence actively shrinking your money.
This is the "buying high and selling low" mistake that many people make.
It is an emotional, fear based response which goes against your best interests.
On the other hand if you buy now, you will reap the rewards when the next uptrend comes.
As Warren Buffet said:
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful.”
So Why Is Everything Going Down Right Now?
I think there are three reasons for this:
It is getting close to the August 1st deadline for the UASF on Bitcoin - this is causing uncertainty and fear which results in people being less confident in Bitcoin and reducing demand, thereby causing the price to fall.
When the bitcoin price falls, that reduces the amount of money coming into altcoins and also increases uncertainty in those markets so they fall too.
The altcoin markets were already overvalued due to over-exuberance created by the rapid increases in bitcoin price. This seems to be a correction phase.
Conclusion - When Will It End?
Nobody can say for certain, however the main factor here is the uncertainty over bitcoin and I suspect that instability and fear will persist until at least early August.
Once we get more certainty back with the bitcoin situation I suspect we will see a resumption of the upward march for Bitcoin and a definite break past the $3K mark.
In the meantime if you tend to be the kind of person that panics and makes emotional sells then it may be best to reduce the amount of time you spend looking at markets and prices.
Go and do something else to keep yourself occupied.
The downtrend won't last forever and you may be better off removing any temptation to act in haste.
Thank you for reading
I think that the market would have crashed anyway even without the segwit to be or not to be controversy. The reason being because it has risen too quickly in the last few months and a fast appreciation in price like that brings in a lot of speculative investors and when there aren't enough of these people left to keep buying the price crashes. I wouldn't be surprised if we enter a longer bear market now regardless of what happens with Bitcoin next month. However I don't expect it to last as long as the bear market that started in 2014 because there is now more confidence in cryptocurrencies and people can see that it has already recovered from a very big crash before
Why is everybody talking about a crash. All coins including steem exploded like hell. I think this is just a correction. It will rise sooner or later.
I think a fall from a peak of around $2.80 to less than a dollar in the space of a few weeks counts as a crash for Steem! I agree that it will rise sooner or later but it's a crash nonetheless. I would be very surprised to see it hit a new high within the next couple of months and in fact in my opinion it will still fall further, which is great because we can buy more for cheaper
Agreed. We great 29X in the altcoin space alone from February until June. We had to give some back for the space to continue to grow. To expect it to keep rising without correction would be just silly.
And I also agree with you that the cycles of boom and bust are becoming quicker now than they were in 2014. More money is coming into the space, more mainstream coverage, it's growing.
Like the way you phrase that up.
Thanks!
Hard to say but you may be right.
best time to buy indeed!
but which one
you got a tip wink wink :)
There are lots. I think Steem is an obvious one.
I think that it will rebound… But if it makes a lower low the pattern is in and we are unfortunately in for a rough ride downwards.
Most people will be too cautious now to buy and that's not going to be good for the price short/mid term
Agree 100%
Great!
Very astute observations and overall great advice especially invoking the words of dauntless fiat investors, but I am also weary that BlockChain is due an attack from the Fiat strongholds banks and they could very well be buying, increasing demand and driving prices to then dump, wait buy low and do it all over again thereby crushing the fiat reserves or the uninitiated in these matters. That is why I am with you, when they dump by buying back into fiat their realm we should keep calm and hold as well as by low again and be here ready to ride wave. They have more resources than we do, we therefore must have more patience.
Excellent point. The thing is they can only do that for so long and if they are we should take advantage of it!
say no more, I'm sitting in.
@thecryptofiend Thanks for the detailed explanation of why the crypto market is crashing. Very logical. I agree with your advice about buying crypto now or holding if we already have bitcoins or altcoins.. Upvoted
I am taking your advice and doing something else without looking at the markets.
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For how long does a correction takes place? I have been tracking ethereum from quite some time, it started coming down from close to 400$ , then fell to mid 300's, then ICO happened and the price fell more, after that counterparty came into picture and people started selling in panic, the price came to 280$. In the last week it has come down to 240$ and now it is at 200$. IS THIS CORRECTION?
There is no answer for that. It takes as long as it takes.
I think so, Now it's time to buy or to xchange from sbd to steem
Yes. Check the SBD to Steem rate before you do - sometimes are better than others.
SBD to steem is the best time to exchange
This comment has received a 0.07 % upvote from @booster thanks to: @hamzaoui.
This comment has received a 0.07 % upvote from @booster thanks to: @hamzaoui.
I just follow 7 currencies that I think will last for a longer period, and, as a general principle, I buy the one that has fallen most and when I need Euros I sell some of the one that is up most. Works well enough.
Yes that is pretty much what I do.
I like your rotational strategy.
Panick selling is the worst thing you can do. So many newbies bough in on ETH, for example, in the $300's. and are selling at almost 40% losses just a couple weeks later. It blows my mind. I'm currently buying small chunks at a as it goes down. I'd had to blow my whole load on one buy in price trying to predict the bottom. So I'm averaging it out on the way down.
Yes it makes sense since we don't know how low it will go to buy in stages.
I just visited your blog and saw you are a medic. I'm a career firefighter/emt. While paramedics aren't one the fire department, we work with them hand in hand from the county on any emergency calls in the city. Sorry to get off topic. Just wanted to share a commonality and let ya know I followed ya.
Welcome. I will check out your blog!
Thank you. Your post is informative.
Buy buy buy and buy steem and powerup. It is always good to save some cash in order to take advantage of market decline.