Long-Term View During Volatility

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Volatility is a trader's dream. It also causes ulcers among newer investors. The world of cryptocurrency is filled with people from all over the world who are just learning about financial affairs and markets.

For those who are new, it can be overwhelming.

Many of us did not get introduced to markets through cryptocurrency. We started years before in equities, bonds, or perhaps commodities. While they can go on some wild rides, they are tame compared to cryptocurrency. A 10% decline in the stock market is huge. For crypt, it can happen in 15 minutes.

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This can really overwhelm a new person. Even those of us who are around a while, it is best to remember that nothing goes straight up. The run from $100 to $60,000 in Bitcoin was not without a lot of setbacks along the way. Looking at things on a log chart, it looks rather smooth. Of course, anyone who lived through it knows there were some hard pullbacks (bear markets) along the way.

Therefore, one way to alleviate this is to look at the example set by Bitcoin HODLers. They are getting very close to reaping massive fortunes off their decisions years ago. If Bitcoin reaches the couple hundred thousand level, we will see a number of billionaires created. It will also change the lives of millions of people.

It is easy to guess this is something that everyone wants. However, does one have the internal fortitude to weather the down times. As shown in the above picture, it can often feel like a rollercoaster full of massive drops. Welcome to the cryptocurrency markets.

Of course, this is not isolated here. We see the same things in equities. Everyone says they would have loved to have Amazon stock at $15 or Tesla at $25. Sure, it is easy to look in hindsight.

There is, naturally, a couple questions that arise. The first is would you have bought in at those levels. I remember when people were complaining about people being able to buy STEEM (a number of year ago) at a cheap price when it was well over a dollar. They called those who did "lucky".

When the price dropped down to 20 cents, how many of those people who were launching the accusation were buying? The answer is very few.

If you are going to be successful in markets, buying has to happen at some point. This is the way one fills the bags to enjoy the rewards when the price does run.

Which brings up the second question about the abovementioned equities. Would you have held? This is a crucial step in the process. Sure, everyone loves the price of Ethereum today. Those who bought in at $6 are doing very well if they still have it. The person who sold at $10, while making some money, missed out on a whole lot more.

However one decides to approach things, one of the keys appears to be holding through the down time. Sure, it is nice to time the markets but that is something very few can do successfully. Quality projects should be able to keep rising over time, even though there are temporary setbacks.

If is very difficult to hang onto every tick in the market price. The best approach is to "buy and forget". I do not mean this literally but, rather, monitor what is going on to see if the conditions around the project change. Since this is usually what will end up eventually causing a major run, watch what is taking place there. The market has a way of misjudging just about everything for a certain period of time.

Going with the long-term approach means not having the emotional attachment. In cryptocurrency 50% pullback are commonplace. If we get wound up over it, then we are going to give ourselves ulcers.

And that is not a good thing.

Article by @taskmaster4450le.

Posted Using LeoFinance Beta



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10 comments
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Electronic-terrorism, voice to skull and neuro monitoring on Hive and Steem. You can ignore this, but your going to wish you didnt soon. This is happening whether you believe it or not. https://ecency.com/fyrstikken/@fairandbalanced/i-am-the-only-motherfucker-on-the-internet-pointing-to-a-direct-source-for-voice-to-skull-electronic-terrorism

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Please downvote and mute this horrible account. It likes to downvote harass bully intimidate and be such a general nuisance that the community has gotten tired of it.

In fact we need to have a way to remove certain accounts from being able to abuse the community in the event such abuse has truly gone to catastrophic proportions like this one..

Thank you everyone and we really enjoy all of your support as well as love. Our online community will overcome one Petty cereal spammer.

Thank you from me and puppy dog.

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Congratulations @lbi-token! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

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Your next target is to reach 65000 upvotes.

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Check out the last post from @hivebuzz:

Hive Power Up Month - Feedback from Day 7
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You're absolutely right, the truth is, everyone needs to at one point in time buy in other to sell when the prices are good, I remembered the early days of hive when I was buying and staking with my steem and today I'm using it to curate, enjoy the reward as well as having liquidity as well. It's important to hold, sometimes in crypto we can't predict the top.

I enjoyed this one.

Posted Using LeoFinance Beta

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That is actually one of the great things about both HIVE and LEO; in order to build your curation power and raise the monetary value of your votes, you need to stake it. This makes it much easier to HODL during the down times as there is basically nothing you can do about it when the market pulls its stunts. While it can be frustrating at times to play the "what if" game, in the long run HODLers win. It's a proven fact. Focus on how much you have; not what it's worth. When it eventually starts reaching levels most of us feels it deserves, then you can start making decisions on whether to sell or not; from a position of strength, not emotion.

Posted Using LeoFinance Beta

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Well I don't really like day-trading but sometimes it just happens because my trading plan for a swing trade happens on the same day. But yea the stress for day trading isn't worth it since you have to watch each tick. The longer term view is a lot easier to go towards but if people do try trading, they should come in with a plan.

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I believe It's all about having the long term approach in mind. When the price dip, recalling that you are in for future, could give reasons not to panic much. Having seen a lot of dips since 2017, the prices for solid cryptocurrency seem to always find it's way back up


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The fact is that some investors fail to understand that there are coins with good use cases and as such should be held for long term irrespective of the fluctuations.
For example , people bought Solana at cents now we know the price. Polkadot , BNB , Cardano , these are coins with good use cases and hodl them for long won't be an issue

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Would you have held?

The toughest question in crypto. I highly doubt than more than 2-3% of people would actually hold if given the opportunity. I first would have sold BTC a long time ago had I got the chance to get in early. That would probably make me lose interest in the whole thing because I would be to busy hating myself.

Great article though. All I can add is, when in doubt, zoom out.

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Or you could always use some Prilosec that helps with lowering the acidity and protects the stomach that way :P

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