The cryptocurrency appeared in 2009 as a response to the 2008 financial crisis. During this time, cryptocurrencies have actively spread around the world and more and more people have started using digital assets and making a profit from them.
At the same time, since 2009, the cryptocurrency market has experienced several large rises and strong declines.
And although after each downturn comes an even greater rise and the cryptocurrency breaks another record for the growth of the asset price, the market decline is still very difficult for the crypto community and many people, disappointed in cryptocurrencies, stop investing in them and their other use.
At the same time, the fall of the market is a time of huge opportunities.
After all, it is only during a market drop you can buy the most valuable and liquid assets at the most attractive price.
Also, during the fall of the market, new promising cryptocurrencies appear, which will shine in the future, giving their users new opportunities and huge prospects. The most important thing is to assess the potential of new assets that appear on the market in time.
Here are some tips that will help you not only to survive during the fall of the cryptocurrency market, but also make money on it.
FOMO (Fear Of Missing Out) and FUD (Fear, Uncertainty and Doubt) are common terms in the crypto space that often influence people's actions, provoking them to make mistakes.
FUD usually refers to negative market sentiment caused by rumors, bad news or events.
Usually, after knowing this news, traders and investors in a panic tend to sell their assets without thinking about the consequences. And this further provokes a drop in prices.
FOMO in contrast speaks of a trader's tendency to wishful thinking. Seeing a constant and stable upward movement of the price, users sometimes ignore fundamental signals, hoping to get even more profit.
Cryptocurrencies are very volatile and unpredictable. Therefore, it is very important to plan everything in advance and take measures to reduce your losses in the event of a sudden failure.
The volatility of cryptocurrencies gives huge prospects and it is very easy to get carried away. Therefore, you should never forget about high risks and set goals that balance minimizing potential losses with achieving potential profits.
Over the years, Bitcoin has continued to evolve and grow in the long run. Even if its price has been falling for a while, history shows that prices are likely to eventually recover in the long run due to economic factors such as limited BTC issues and the steady and constant growth of the crypto community, that is, the number of BTC holders.
Holding crypto assets for a long time is a proven strategy today, and Bitcoin is becoming perhaps the most successful asset over the past decade.
This can help the investor to ‘fix’ their portfolio and reduce risk, as well as effectively manage the assets.
But it is also necessary to remember that the sale of all assets at once can lead to significant losses for crypto investors if the market recovers. Therefore, it is extremely important to determine what level of profit and loss will suit you.
If you think that an asset will eventually cost more, a market drop is the best time to buy! In this case, you get much more cryptocurrency for every dollar invested.
At the same time, do not forget that investing in cryptocurrencies during a market downturn is extremely risky, because not all assets are able to survive the fall of the market.
Invest only in the best assets and choose wisely!
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