Hello everyone and welcome back to this new article, today we will deal with the topic of what to do and above all NOT to do in this particular historical period for cryptocurrencies, to safeguard our money and our investments.
In the period we are experiencing, we have experienced very strong declines with regard to any type of cryptocurrency and all this can lead to Panic Sell, anxiety and stress, seeing our wallets completely destroyed.
Obviously there is no universal way to act but we must make distinctions based on what type of investors we are.
If you are a long-term investor (like me), the last thing to do is worry about what is happening now.
I know it's mentally hard to see our wallets plummet, but if you have faith and believe in the future of cryptocurrencies, we just have to have a nice cup of coffee and rest assured.
Moments like this, for us long-term investors, are precious because they allow us to accumulate even more coins at a lower price than normal.
In fact, if we have entered on higher priced coins, this momentary decline allows us to lower the average cost of loading, then going in the future to obtain greater gains.
The "advice" I can give you is to be calm, wait for the right time to buy, accumulate even more coins if you have the possibility and then sell when the market has stabilized and will be less influenced by external agents.
For short-term investors, the situation changes dramatically.
Trading in these moments is really risky as the market is unstable, has very high volatility and is totally unpredictable.
The only "advice" I can give is to wait for a more stable period, keep your portfolio at the safe haven on stablecoins such as USDT, BUSD or EUR, so as not to be able to lose value in any way.
I know that it is not easy to wait and you would like to trade at any time, but the skill of a trader also lies in knowing how to stop when the market is not favorable.
The average investor without a precise strategy has both of these characteristics.
For FOMO we mean, when, at a slight rise in the market, you are afraid of losing immense profit opportunities and for this you buy only because they think they could miss the train for the moon.
This obviously will lead them to lose money as buying without having studied and without a strategy is always harmful to our finances.
The Panic Sell, on the other hand, is the fear that everything will collapse and everything will return to 0 as soon as a minimum collapse of the market is seen, in fact in this case people will go and sell everything they have, selling positions even if already losing a lot of money.
Even here, the result will be the same as the FOMO, losing money unnecessarily.
In this period, in fact, we see many small investors closing positions, favoring the descent of Bitcoin and all other cryptocurrencies, favoring the purchase of institutional, which instead will buy and buy at a discounted price.
All this to make you understand that when investing, we must first have a strategy in mind, have studied, and only then invest your money; cryptocurrencies, such as stock or forex markets, are no joke and we can get hurt a lot if we invest randomly.
