Why one must not panic when crypto prices are going down

We have seen the prices of cryptocurrencies going down quite steeply in the last week. However, according to my experience, there is nothing to fear, as the prices do always rebound eventually.

Assuming that you entered the crypto world when the prices were still relatively low, what you could do is to short trade some of your coins. Initially, I used to hodl all of my coins and never trade them. However, I have seen the prices swing many times. I mean how many times have you seen the price of Bitcoin passing $9000, and then coming back to nearly $7000 like now?

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Now, if you are just hodling, you would be denying yourself a chance to increase the amount of your coins. What you should be doing instead is to sell some of your coins when the price is high and buy back when price is low. The best practice would be to hodl most of your coins and trade with some of them, like with a 80% to 20% ratio maybe.

What I have been doing recently is to sell my coins at every little increase in price, and then buying them back as the prices go down. While doing that, I make sure, I always buy back at a lower price than at which I sold. In this way, you can keep increasing the amount of your coins. For this, sometimes you have to wait for a long time. For example, at one point, I sold some of my BTCs when its price was around 6,600 euros. Only few days ago, the price of BTC went below that, allowing me to buy it back.