Bitcoin will not Rise in a Straight Line to the Top || Be Strategically Prepared for Red Days

in LeoFinance28 days ago

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Bitcoin is going sideways. A rich dude with lots of power is tweeting about cryptocurrency. All time highs are being reached left and right. It seems as if nothing can go wrong. And it probably won't go wrong for a while. But will it go on forever in the same trend? Of course not. We have been at this point before, back in 2017. Back then the rich dude was McAfee for those that remember. And everyone was expecting Bitcoin to go to $50K by the end of 2017, or at the latest in 2018. And then the fire nation came. Well, no they didn't, but what did come was the bear market. That dreaded awful bear market which took us by the balls for 3 years, give or take. For many it was an unexpected turn of events as it lead to heavy losses. If you sold in panic or despair that is. A lot did not sell and held on tight.

The point I'm trying to make is that things can't go up all day every day. At some point small or BIG corrections will happen and possibly another bear market will follow. When that eventually comes, be sure you are prepared. History always repeats itself. And this will be the case with crypto as well. A good way to be prepared is to have a portion of your profits or holdings in stable coins at all times during the bull market. USDT, DAI, BUSD are all stable coins, which means that their value is pretty much pegged to $1. HBD is supposed to be like that too I think, but that's not the way that one works. xD I always keep my initial investment in USDT and then some on top. This way I never really lose. The worst thing that can happen is I go back to point zero.

The crypto game is an exciting one. But if you let endorphins take over and you don't keep a level calm head, you might crash and burn in the end. Apply strategy, be tactical, be rational, so you can become and stay financially independent.

How do you prepare for eventual drawbacks?

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That APR in HBD is pretty sweet though! Would be nice if they could get it a little more stable though 🤣

Great post though, it's important to secure gains and minimize risks. Taking profits are a great way to do that. Biggest lesson I learned after the 2017 run. I survived to this point, but I'm taking a lot more precautions this time around too!

Biggest lesson I learned after the 2017 run.

You and me both. Longest bag hold ever. xD

I don't mind the HBD volatility one bit, as long as it stays on the upside and now the downside. For the first time ever I've been withdrawing some HBD as well to buy dividend tokens like NEO and KCS. The plan is to let the profits flow back to my Hive account. Rinse and repeat.

Sounds like a great plan!

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I agree my friend believes 100k will be the time the black swan comes I agree, from there I told him go with your gut and try defi, yielding and blockchain, like Hive that's what I love with this. Me I'm always not correct I seen big bear markets where I shouldve bought the dips I sold some kept the most especially earlier investments I don't think I'll be touched unfortionately lol I want them prices for the next halving... I don't think the big dip is a bad thing and traders can always adjust, and I don't think it'll effect places like Hive now

Lol, your comment is all over the place, but I understand what you are trying to say. Important is that you have learned from everything you have encountered till now and have become wiser in the process. As an early adopter you will be among the lucky ones when 100K is reached. :)

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Well now here's the thing that nothing really is stable other than gold.

Yep that's right if you tried to pick the dollar as the standard next thing you know you have all sorts of problems because of the out of control inflation.

That same dollar now will buy 300% less building materials.

Yep that's right a sheet of plywood that normally does $30 which is an astronomical price and of itself now cause over 100.

So trying to peg anything at the dollar really is an exercise in futility

You are absolutely correct. I should know that more than most, living in an inflation heavy country. I usually stay in "stable" coins short term, just because their fiat counterparts are less volatile than Bitcoin, usually. So holding fiat or stable coins is definitely not a good strategy long term.

Yep. Exactly why I'm.wary of holding usd.

Better investment in cryptocurrency lead and gold. And I do like gold.

Time to enjoy life!!!

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Great write up. Its good to read about keeping your head on. Its hard to see those dips in the red and perceive it as lost funds. However, the history shows just what you stated "it repeats itself".

A lot of those "headless" people exist, unfortunately. Well, maybe fortunately for those of us that apply rational thought, because there can't be winners without losers. xD

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Hey @leveluplifestyle, here is a little bit of BEER from @rarej for you. Enjoy it!

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2021 is completely different to 2017.

One of the main reason is that we’re in the middle of global pandemic and crypto is providing more opportunities for people

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It may be so, but the point of this message is that anything can happen at any time that changes course of action, and we should be prepared. Prepared to sell some of your portfolio at the right time as a trader. Of course there are some tokens like HIVE and DOT that I'm keeping for the long run, bull or bear.

Some people see opportunities now, but are shortsighted, and when somethings appears to be crashing a lot of them can act in emotion causing an actual deeper crash of everything.

When there's blood in the streets, you buy

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Correct. Red days are better than green days. Unless it's the band Green Day.