Bitcoin is making headlines this year with its fantastic returns. Every day it seems like new records are getting broken, with consistent all-time highs being reached. When Bitcoin is doing so well, people’s emotions are extreme happiness, excitement, and freedom. What happens when people experience their first Bitcoin Correction, and the price plummets 10-30% over a few days?
When Bitcoin is crushing it and making all-time highs every day, the euphoria is incredible. But when a Bitcoin correction happens, the lows are low, dark, scary, hopeless. You start to second guess your decision and ask yourself, am I a fool for believing in cryptocurrency? I’ve experienced this many times over the past few years, and don’t worry; you are not alone. The bashers always come out of the woodwork when the price takes a beating. They intend to make you feel worse about the situation and make you sell your hand. Please don’t fall for it ever. You will regret your decision. Just relax, and take a deep breath and use the tips in this article for a resource when you are second-guessing yourself.
If we all had a magic crystal ball and could perfectly predict the perfect time to buy the market lows and know when to sell on the highs, we would all be rich. The best alternative to timing the market is just simply dollar-cost averaging. By doing this, you are consistently buying Bitcoin at different price levels, and this will reduce your overall risk. This will help you avoid bad timing. If you invest all your money at one particular time, you risk buying in the right before a massive market downturn. Dollar-Cost averaging ultimately helps out with your decision-making process. Just budget every week for automatic deposits into your crypto wallet and sit back, live your life and enjoy your healthy returns.
Hold On For Dear Life
Hodling has become a popular saying in the crypto ecosystem. The acronym is (Hold on for dear life). This couldn’t be a better saying for this volatile asset. Contrary to belief, Bitcoin wasn’t created to be a get-rich-quick investment. It serves a purpose and has value. There is a straightforward principle to making money on any investment. You have to buy low and sell high. It seems easy, right? Not really. Far more people have lost money trying to time the market, thinking they know exactly when the price will skyrocket. Time has shown if you hold your investment, you have a lot higher odds of making significant money. Since January 2021, BTC is up 90%. Simply hodl, and dollar-cost average for life-changing wealth.
Zoom Out On The Price Chart
The price drops quickly during any Bitcoin correction, Unfortunately with the mass adoption of Bitcoin, it’s a bitter-sweet moment, I’m beyond happy to see more and more people getting involved in crypto, but the sad part is someone always buys in, right before a correction. If you or someone you know is going through this pain, tell them to look at the 12-month price chart. There will be corrections along the way, but if you believe in Bitcoin, think about where it will be 12 months from now! I’d rather be on the inside looking out than the outside looking in when this rocketship takes off. Zooming out on the chart provides perspective like I mentioned before, if we all had a crystal ball and could predict the future, we would all be rich. Just trust the process and let Bitcoin continue to do what it has been doing for the last decade.
Talk To A Friend
When in doubt, talk to a friend. Most likely, you heard about Bitcoin or Ethereum through a friend or a family member. Surround yourself with people who value cryptocurrency as much as you do. Have a conversation; make sure you talk about all the positives about Bitcoin or the blockchain make sure your conviction level stays high. Worst case scenario, you don’t know anyone who follows crypto; make sure you follow Michael Saylor on Twitter and watch all of his youtube videos. He is incredible and makes everything so simplified. One of my favourite quotes of his is, “only invest the money you want to keep” if you don’t know, he owns over 90k Bitcoin.
Bitcoin corrections are guaranteed to happen, and this not a bad thing. Just be prepared for this to happen, so you have peace of mind. Measure your risk tolerance and remember why you invested in crypto in the first place. If you are reading this article, you are most likely having some doubts right now. Follow these tips exactly. This will assure you with mental sanity. Bitcoin and Ethereum are both disruptive technology, and what do we know about disruptive technology? The world hates innovation. Think about when email came along, and people thought it would never be a big deal, or how the world is going through the electric vehicle boom. People are hesitant to change, but let’s be honest, this technology is far more superior to traditional fiat money.