Coins value goes Up and Down, so relax
It is bear season and the mistake one could make at this moment is selling their bags. Well, the reward might be huge too based on the price at which the seller bought his tokens. The chance of making a profit from coins sales at this period in time is slim but few people still attain this. in fact, some have made a few bucks for the Xmas celebration during this period.
Well, my post is not for this set of people, rather it is for the people who are new to how this blockchain world operates. Take this post as morale lifting speech or an added knowledge, but in whichever way you perceive the message from this post, remain calm. Also, remember that it is just normal for the value of coins to dip.
So the summary of why the value of a coin will be bulleted below. The points below were be coiled from an article written on Cointelegraph.com and you could find the article here. The summary of the causes of a bear market are;
Lower trading volume: This usually means that people have started to hold their coins due to uncertainty in the market.
Negative sentiments from traditional finance: An example of this was when JPMorgan CEO Jamie Dimon called Bitcoin a fraud in 2017, just months before it reached $20,000 per unit and then crashed promptly.
Death cross: A technical indicator pertaining to an asset’s crossing from a 50-day moving average to a 200-day moving average.
Backwardation: When an asset’s price in the futures market is lower than the current market price.
Changes in the federal funds rate: The rate at which banks lend/borrow their excess reserves overnight.
Intervention from regulatory bodies: An example of this is the Chinese government’s restrictions concerning crypto software and mining. Such interventions force a lot of mining operations to go offline, causing widespread uncertainty
The above points listed above could affect the prices of crypto thereby resulting in a dip in value and since this occurrence can not be controlled but only anticipated, then one should not waste one's time worrying over it. What one should be focused on majorly is how to react when we are in the bear season.
For me, I do the following;
I relax and keep calm
Invest in coins with a good use case and hodl
hodl my coins/ crypto bags
Pay a closer look at the market
Keep abreast with the current happenings around crypto (Information is power)
Kindly note that keeping calm remains the most basic and more rewarding thing to do as the coin that dip will likely moon. Keeping calm also helps one avoid making rash decisions likely selling a coin with huge potentials due to frustration. The fact that you are losing money shouldn't make you panic especially when the coin losing value as a great use case which could make it bounce back easily.
Also, when inflation hits the crypto market, there is a tendency for something like price correction across board. So if you are new in the game, keep a cool head in the head season in order to avoid making a big mistake. Besides, after a dip comes a moon.
Posted Using LeoFinance Beta