“What goes up must come down…” Is a saying which is definitely accurate in the highly volatile crypto world. I’ve lost count of the times my heart has plummeted and I’ve asked why I invested in all the currencies I have. But then a small spark in my hear reminds me that it’ll go back up again, allowing me to chill out a bit and not panic sell. I’ve lost over £3,000.00 panic selling in the crypto game so far, but since I’ve learned to control myself and be cool, things have been a lot easier.
So recently, we’re talking January 2022 here you’ve definitely noticed crypto prices have plummeted fast and furious. There are numerous reasons given for this but inflation definitely isn’t one. (Inflation would increase the $ value of cryptocurrency, rather than reduce it.) Many people are also stating that it’s because certain parts of the world are banning Crypto, or because of the recent fracas in Kazakhstan. Well if the Guardian knew what they were on about they would understand that when there is a lack of supply, the demand grows and the value of items increases. Cryptocurrency is an asset, and prices do not go down when the supply is cut. They should by economical standards go up. My speculation is that with Cryptocurrency doing so well and the market going down, a LOT of people would have pulled investments all over the place from Crypto to buy stock in the companies they knew would recover well. This for me is the most likely and sensible reason that crypto has taken a hit.
So here are some of my tips on how to HODL like a BOSS!
1: DON’T PANIC!
The Hitchhiker’s Guide to the Galaxy was dead on the money with this one. Panicking is the worst thing to do in every situation and it’s harder not to panic than you know until you’re faced with a situation like this. Panicking usually results in selling your crypto assets, saving what money you have and bemoaning your losses. Whatever you do, do not panic sell. If the whole market is down, it’s going to come back up, this is after all a game of volatility. If you sell at a low point and lose money you miss out on getting your money back when the market starts to recover. If I had panic sold my Moss Carbon Credit, I wouldn’t have missed the little spike that got me some more Shiba Inu, as I transferred out when it hit an unnaturally high peak the other day.
Think of it like this: If you see Ethereum drop by 40% and sell your holdings, cut your losses and walk away. How do you feel when the price gets back to the previous level? You will have lost 40% of your money during this experience. If the price goes up again, however, and you buy when it’s really low, you’re going to make a profit.
As I mentioned earlier, people rarely know why prices are going up and down, there are so many ‘experts’ out there, and as for me, I’m just a student of economics and marketer, so I can see a few things your average journalist cannot. Be steadfast, be strong. Don’t panic sell.
2: Treat this as Black Friday For Crypto
When people talk about buying lows and selling highs, this is exactly the time to do this. In the big dipper, we have Black Friday, come one come all! Get your favorite Cryptos Half Price!!! This is the perfect time to make profit. At the moment when the market recovers, you have the chance to double or triple the money you put in. As with every investment, there are risks and this shouldn’t be classified as financial advice, but Crypto being volatile will be going back up again and getting some at great value will shave a few work hours off your life.
Significant drops give an opportunity to buy more of your favourite tokens at a low price. For example, there may be tokens on your watchlist that you’ve been meaning to purchase but have been waiting for the ideal opportunity. You might also wish to buy more of specific tokens you already possess if you believe they have a bright long-term future, I’m packed high on Shiba Inu, Algorand, Solana, Cardano and Tezos right now. LETS GO BOIS!!!
One of the main things though is that you should be careful, and I mean really careful about Panic Buying. This is the opposite of panic selling and can also lead to disaster. It’s pointless to buy something you haven’t thoroughly researched and don’t actually desire just because it’s on sale. And buying the drop with money you need to fulfil other financial goals (or worse, borrowing money) is not a wise option. Cryptocurrency investments are still risky, and there are many unknowns, especially as the threat of increasing regulation looms. It’s possible that you’ll try to buy the dip just to see prices drop much farther.
3: Exercise and take time for You.
Exercise is really important. Staying physically healthy helps you to stay mentally healthy, and you need to be both if your currencies are crashing. It’s much better to use this as an opportunity to get fit than to stay there watching the prices drop and your savings disintegrate before your eyes. I find running helps a lot when things are down as I’m focusing not on the dip in my profile but more on getting fit. Take time to have long baths and keep yourself occupied.
4: Changing Your Focus!
Focus is important. As a blogger, I have to change focus regularly. To do this, I set a rule: When I wake up, I must write one blog before food and one blog before I go to work. Because of this, I write more blogs than a lot of my competitors. Now if you were a runner, you could run before food and after. Gamer, the same. If you do it as a rule, it will begin to affect your life. You’ll find yourself more focused on getting blogs written, as I do, or whatever you want to focus on.
I did this a while back with YouTube videos. For a month, I pumped out videos on Space Station 13, which was a lot of fun. I’m going to be doing it again soon! The reason changing focus is important is that if you’re not thinking about your life savings burning up in crypto hell, then you’re going to be leading a healthier and happier life. Deep down we know the value is going to rise again.
5: Don’t Think Small, Think Longterm!
Don’t get too caught up with the 24-hour charts. Instead, zoom out and take a look at the entire year. All market cycles have ups and downs, but with a new and largely untested investments like cryptocurrency (especially the newer ones) are more dramatic. You can afford to wait out the drops as long as you haven’t invested money you need in the short run. If you are never investing more than you can afford to lose, then you should be comfortable, sipping out this phase with a nice glass of whatever your favorite beverage is.
No matter what happens, if you want to HODL, you are Holding On for Dear Life, you don’t have to make it stressful for yourself. I always look for more ways to make money in order to feed my crypto addiction. (I seriously can’t get enough at this point!) I take more side jobs and keep busy and I recommend that for you too. It’s a great way to keep focused and not think about what’s going on where it can affect you.
This article isn’t financial advice and shouldn’t be taken as such. I hope it helps some of my fellow HODLers.