Crypto market crash and survival techniques explored for beginners and investors alike. We know it will happen the only question is when and what do we do
A Crash is inevitable
What goes up must come down so it is all about timing and your ability to read the vibes.
Being a chart expert helps but that takes a few years of training so the idea is to find someone you like and follow them on YouTube.
First of all the market is about supply and demand .
The problem starts when the sellers want to bail and there are no buyers willing to take up the offer.
hence the sellers start price dropping and its off to the markets.
This is often started by outside sources, situations out of our control, FUD and probably the Federal reserves putting the wind up everyone.
Furthermore the whales will manipulate the price to provide day trading options
Finally one person can make a difference with a public comment, think Elon Musk who can drive a market in any direction.
Consider the upward trend not the volatility
If you are a hodler or long term investor the daily dips are just part of the game. We know that Bitcoin will at least double every year after a roller coaster ride to the top. Furthermore Etherium will remain at about 10% of the coin and the other top twenty coins will follow suit.
The Whales, Institutions banks and Investment groups are in for the long haul because they see scarcity coming very soon. There are only a couple of million coins left to be distributed and the Miners are chipping away at them ever day so when that shortage arrives the moon is the answer.
A large percentage of the market will simply disappear
Many Alt coins have nothing behind them and the money will go to the top and not to your pocket.
The Dog coins maybe ok to day trade however they have no substance in the future. Many other bottom dwellers will go the same way so if this is your portfolio then best of luck.
The Crypto market is like any other trading entity and you should treat it with care.
Gather an understanding of what a coin does and what are the basics behind it.
You know how many coins are available so at what price are they unreasonable. How many others do the same things and how many will wipe them out.
The early adopters generally win the race and the look a likes will always struggle to gain a greater share of the market.
An example is Etherium, Solana and Cardano whose function is basically one and the same yet the price difference is radically different.
The difference here is that the DIFI market is big enough to accommodate several players however Etherium was the first in and grabbed a dominant market position.
Crypto market crash and survival techniques explored when the unusual enters the door.
When the Black Swan enters the pond
A Black Swan event is something we can not for-see and one that is critical to the economy.
We have suffered market financial crashes, The 9/11 attack on the world Trade centre and the Covid-19
virus that affected the world.
Hard or impossible to predict however they will have an impact on the market, to what degree depends on many variables.
A current variable is high inflation rates running world wide and the rampant printing of money to keep up.
This is creating an economic Armageddon for the lower income earners and self funded pensioners. This is because of low interest rates and lack of earning opportunities.
The world will not end, the sun will rise tomorrow.
Invest what you can afford to loose without devastation
This is the golden rule of investing along with broadening your portfolio so the eggs are spread out and not in the one basket.
However holding cash or cash investments at this time is costing you money as inflation bites into the value of any Fiat Currency
In some countries the value of their coin is falling at massive rates making it impossible to keep up with the inflationary effect. Argentina is an example.
The Bear chases the Bull
Or is it the Bull chases the Bear. It does not matter except that each will have its time in the market. We are currently in a nice Bull market where things are trending positively upward however it never just continues in one direction. Therefore understanding the market is important.
Take advice from several directions and not just one. Furthermore ignore the extreme people promoting a following by just talking rubbish. They are out there every day and even at times trying to manipulate the market.
Avoid fear, uncertainty and doubt.
Nothing I say will change your mind and you will go your merry way however something may have clicked and will save you sometime in the future.
A friend of mine that loves to trade says buy on Saturday and sell on Tuesday because these are the highs and lows of a weekly cycle. Not being a day trader I am not sure however you may like to check it out.
Don’t be scared of this generational change
The crypto sphere is a great and exciting place to be. It is certainly a disruptive technology that will change our lives for ever as it takes hold of industries like Banking, insurance, Real estate etc and those changes will suddenly dawn on us over time.
Only about 1% of the world population trades in crypto and the rest remain blatantly ignorant of the change we are experiencing. Don’t be one of them but continue to trade carefully.
Nothing I have said represents Financial advise only my thoughts on a product of interest.
Tread your own path.