It’s very popular amongst newbie investors to sell their coins because the price of an asset is dropping.
For example: an investor puts in $90,000 into a coin but just because the price of the asset is 50% down, there’s usually that thought to sell the coins to avoid losing all the investment money.
This is very common and honestly it’s hard to be accurate with knowing when to take it a loss or hold on for a reversal. These are some practices you should do when the price of asset keeps dumping
1. Buy the dip: that’s why OG investors recommend a certain percentage of your capital in stable coin so that in case a dip opportunity happens, an investor can take advantage of it by buying the asset at a much lower price and once the reversal happens more profits.
2) Hodl: the idea of holding your coins no matter how much the asset price is can be a good investment strategy because the investor isn’t in a rush to sell off the coins but waits for the demand of the coin to increase so that it’s once the price goes up, the gains will also go up.
3) Research: it’s not an easy task sometimes to determine the reason a coin price is dropping but by reading content about the coin, you may find out whether it’s be a there a negative news about the coin or the coin is getting delisted. It’s not reasonable for an investor to hold on to the coins in these kind of case.
