Cryptocurrencies are so damn appealing because of those monumental gains, but one needs to prepare themselves for when the rollercoaster ride really starts. A sudden dip in the market is terrifying for the new investor. Here are some tips to handle the gut-wrenching lows.
Hodl! - This is the most basic piece of advice cryptocurrency enthusiasts will tell you. Remember, you have lost nothing until your hands shake enough for you to click that sell button. If you can hold your coins, you take a big step to become a grizzled and jaded trading veteran- congrats.
But, how do you convince yourself to hodl? Do your research. Almost any cryptocurrency that has been around long enough has suffered dips, probably bigger dips that you are experiencing at one moment. Go back and look at the graphs, see how big the other dips have been and reassure yourself.
Zoom out. If you are watching the charts like a hawk, you have probably zoomed into some stupid level of candle graphs, like two-minute increments. Drops and dips are highly exaggerated when you look at them over short spaces of time. Rather zoom out and compare the dips to ones that have happened over six months to a year.
Prove you are a true crypto believer and instead of selling, buy the dip. That is what everyone else is doing while you fret about your tiny investment. The bigwigs who have seen it all before are buying crypto at discount prices and so should you.
It is also important to look at the deeper issues. Cryptocurrencies will plummet for external reasons. Usually get to the root of the matter and decide if the news is as major as everyone is making it out to be or if it is merely FUD.