The markets have crashed so badly that almost all the have seen a significant decrease in their value
No wonder the global cryptocurrency markets are crashing and the extent to which this is happening has shaken the investors from every corner of the world. The markets have crashed so badly that almost all the cryptocurrencies including Bitcoin and Ethereum have seen a significant decrease in their value. With so much panic around, cryptocurrency investors have become a little worried. Rather than just panicking about the situation, there are certain ways and steps that one can implement in the midst of all this chaos. In this article, we will talk about top 10 things to do amidst the ongoing crypto bloodbath.
Yes, the crypto bloodbath is a situation that’d panic the investors irrespective of how small or big the cryptocurrency investment is. In the midst of all this, what matters is staying calm and taking decisions with a cool mindset.
Taking volatility into account
In the midst of this brutal crypto bloodbath, there’s one thing that shouldn’t go off your head – the volatility of the cryptocurrency market. The cryptocurrency market is highly volatile by nature and such bloodbaths are bound to happen. The market has got every right to swing between rabid optimism, as it did in early 2021, to being pessimistic despair, like the recent times. Taking this volatility into account is very important whenever it’s time for you to take decisions pertaining to your cryptocurrency investment.
Don’t sell in panic
Whenever you see your investments plummet, it’s a natural human tendency to sell away the assets then and there to avoid further losses. This means that you sell your investments/assets at a low, and don’t benefit from any subsequent recovery.
Exploring the very option of buying the dip
What usually goes unnoticed and is less valued is the fact that significant dips may present an opportunity to pick up more of your favorite tokens at a low price. However, the utmost care and attention is expected in this regard. Good research is all that you want.
Don’t indulge in panic-buying
Following the footsteps of not panic-selling, another point worth a mention is to not fall into the trap of panic-buying, either. The reason is quite simple – there’s absolutely no point in buying an asset you haven’t researched and don’t really want, just because it’s on sale.
Assessment of the situation
Before jumping straight onto the very question of why the value of cryptocurrency is declining drastically, you need to assess the situation well. See if there is any news driving the trading price of Bitcoin and other cryptos and whether it’s possible that there’s fundamental news that’s shifted the market’s sentiment and that the situation has arisen not just price action or any rumor-driving sentiments.
A deeper understanding of why is the cryptocurrency market seeing a downfall
As far as the recent turmoil and crypto crash is concerned, there are a couple of reasons for the market-wide tumble. Having a deeper understanding of the same is probably one of the best things to do in the midst of the bloodbath. Talking about the reasons, one is fear over the new omicron COVID variant, which caused investors to pull away from riskier assets. Yet another prime reason would be that the Fed warned it may raise interest rates, and the fact that there are still rumblings about stricter regulation cannot be overlooked.
Evaluation of the future prospects
Now that you have a clearer picture in mind as to what is the bloodbath situation all about and what has led to the same, it is now time that you analyze how the fundamental situation could play out for crypto, given the new developments and whether the governments would get tougher on it. You also need to see whether the new regulations would help rather than hinder the cryptocurrency market. Lastly, what might drive the market is all that you need to focus on.
Action-based on future prospects
With a clear assessment of the situation, a deeper understanding of the same, and an evaluation of the future prospects, it’s time for you to act accordingly. If you believe that the risks are opportunities in disguise, consider holding your position. If you believe the situation is likely to worsen, bear the current losses and stay safe for the future.
Ensure that your portfolio is diversified
As the cryptocurrency market is highly volatile and your investments in this domain are likely to fluctuate in value, make sure that crypto investment is not your only investment. Diversify your investment portfolio so that you do not panic much about it.
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