Tips to remember during a Crypto Bloodbath

💻 Octavian Contis | oContis Studio
Coinmonks
Published in
4 min readFeb 10, 2018

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History repeats itself. Each year the Cryptocurrency bubble pops, causing panic and making weak hand sell their stash. Generally there is a lot of FUD around it spread by media and it happens right after a spike in the total marketcap valuation. You don’t need to go far to validate my statement; this can be seen by studying charts from previous years on Coinmarketcap and relate them to past events and news.

Bloodbath, it’s all red!

I have only been part of the blockchain ecosystem for little more than a year now; I have seen this bloodbath happen a few times already and I am sure it will happen again. So if this is your first time experiencing the insane volatility , let me share a few tips, that you should keep in mind while investing in cryptocurrencies.
These tips will hold you steady over the long term, helping you to earn a healthy return on your investment.

1. Never invest more than you can afford to lose

This is a basic principle which is very simple to follow, with a bit of discipline. It might sound simple in theory, but a lot of people tend to invest more than they can afford to lose . Some go even further and are willing to take loans from banks in order to invest because of FOMO.
Remember, as an asset class, cryptocurrencies are well known to be the very risky due to high volatility; it is not uncommon to see double or triple digit percentage increases in a day, but also decreases. There are three things you should take with you from this:

  • Never invest more than you can afford to lose , regardless of what people around you are saying.
  • Never get caught up in the FOMO and do not make sentimental decisions.
  • We are still in the infancy of blockchain technology and there is still plenty of time,

2. HODL and Research

Always hold your position during a bloodbath. However, you shouldn’t hold just any cryptocurrency that you come across. By carefully selecting the most valuable projects with a good long term potential, the chances of having a big loss during a bloodbath are less likely. How do you know you’re not investing in pointless…

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💻 Octavian Contis | oContis Studio
Coinmonks

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