Bitcoin is falling, and so is the entire crypto market. The coins in your portfolio are rapidly losing value.
▪️What should a cryptan do?🤔
The most important thing in this situation is that you cannot influence prices in any way. Will they continue to fall or not? You do not know. All that remains is to accept it and observe the situation? Yes and no.
A falling market allows an investor to take a number of actions that allow them to gain certain benefits.
▪️Do nothing.
Inaction is also action. By the way, not the worst option. Sometimes when the market falls, it is better not to take any additional actions (panic, record losses). And stick to your original investment strategy.
▪️Falls and corrections are an integral part of any market.
Attempts to avoid drawdowns (and be out of the market) by selling falling assets are fraught with loss of potential profitability for investors. According to statistics, missing just the 10 best days on the market over 20 years can reduce an investor’s average annual profitability by 2 TIMES!!!
Don't try to predict where the price will move. You are more likely to be wrong. Stick to your original investment plan. We planned, for example, to top up the account once a month and buy assets. Continue in the same spirit. Buy regardless of current prices and immediate market prospects.
The choice of time to enter the market (that is, trying to buy at prices that are optimal, from your point of view) affects the final financial result of the investor by only 4%.
▪️Put buckets and average.
Buckets are buy orders placed noticeably below the current price of a cryptocurrency and aimed at its serious drain (dump) at a time when the trader is not at the computer.
The bucket is set up so that at the moment of the maximum price drop, the required number of coins can be “dropped” into it before the price goes up again.
For example, Bitcoin now costs $26,000. You place an order (bucket) to buy BTC at $22,000.
But remember: when placing a bucket, you always need to take into account many factors, for example, support levels or where liquidity is most likely to be withdrawn (long stops).
Cryptocurrency averaging is a strategy in which an investor regularly buys a certain amount of cryptocurrency (such as Bitcoin or Ethereum) for a fixed amount of money over a certain period of time, regardless of the current price.
The idea behind averaging is that by purchasing a cryptocurrency on a regular basis, regardless of whether its price is high or low at the time, the investor receives an average purchase price over a long period of time. This helps smooth out the impact of short-term price fluctuations on an investment and allows the investor to avoid trying to accurately predict the market.
The benefits of cryptocurrency averaging are that it helps an investor reduce the effect of market volatility and the risks of purchasing a cryptocurrency. In addition, this strategy promotes systematic investing over a long period, which can be especially useful for long-term investors.#Bitcoin