If you are keen on reading and observing the price charts of cryptocurrency, you probably know that Bitcoin has had a bumpy ride this year. After reaching a skyrocketing value last year, the first crypto fell 13% in its first week of trading, which took a real beating among investors and traders, so they started selling their bitcoins, which ended up shedding hundreds of billions in terms of market capitalization.
Most Bitcoin investors are used to the coin’s volatile nature and would not be surprised if it went down to $40,000 or even $20,000. However, the interesting question of whether it could go to $0 is slowly emerging, and there’s a possibility that it could happen. Before you go panic and sell all your Bitcoins, here are six tips that you can try to handle this crisis.
Is Bitcoin $0 Worth Possible?
We all have heard of the news about Terra Luna falling to $0 after plummeting 100% in the indices in the span of just 3-days last month. The dramatic crash of Luna led to millions worth of losses by its investors and traders, which then inspired the birth of Luna 2.0, which its founder developed, Do Kwon. The case of Luna has caused some wonders among crypto enthusiasts that it is indeed possible for crypto to go this low. With that in mind, many are wondering, is Bitcoin headed towards a $0 value possible?
With the volatility of the crypto market, it can be unpredictable and challenging to forecast what could happen next if you don’t have the right tools and level of knowledge. To increase the chances of gaining profits, some engage in trader-broker platforms. The Bitcoin Profit is a prime example of one and by signing there you increase the odds of being successful on the crypto market.
It’s reasonable to look for trusted platforms that can help you when things go south, as the Luna crash and the downward spiral of the crypto market has shaken off investors’ confidence. It even affected the top crypto platforms as the number of investors trading daily has sharply declined. So if worse comes to worst, you must know what actions to do instead of panicking and regretting later on.
How To Handle Crypto Crisis
The past few months have indeed been so hard to watch and painful for investors, especially newbies. The prices of cryptocurrencies, including Bitcoin, have fallen to a new 2022 low, and predictions about its death are starting to arise. If you are unsure of what to do during these moments, worry not! We’ve come up with these tips on how to handle the cryptocurrency crisis.
1. Stay calm
Whatever events may happen in the world of cryptocurrency, it’s important to stay calm and don’t make any sudden decisions. Whether you plan to sell your cryptocurrency or see the dip as a great time to buy more cryptos, you need to think and act with a cool head.
Making decisions out of emotions is extremely risky, especially in crypto, which involves large amounts of money – not to mention that it rarely results in anything good. So before you rush into the market in a panic mode, breathe and reflect on what your crypto goal is, as it can help you come up with the right decisions.
2. Evaluate the situation
When you hear the news about a price decline in cryptos, there’s a great chance that something caused it and not just price action or rumor-driving sentiments. Instead of panicking, do some research and connect the dots, which could lead to the present result. Cases like this happened before, where countries banned financial institutions from providing crypto-related services, which then led to a significant downturn.
3. Think about its volatile nature
Cryptocurrency has a volatile nature; since crypto does not generate cash flow, traders only rely on changes in sentiment to drive the price. This means that the market can swing from optimism to pessimistic despair. When news about a crypto’s downfall arises, emotions of traders dominate the market; however, this volatility is what draws professional traders in. These traders continue to look for ways to take advantage of the market’s volatility and use it to their advantage.
4. Consider the future
Analyze how these new developments and current events could affect the world of crypto in the long run: will governments get tougher on crypto, or will they gradually accept it? Before you panic and do unsure actions in the market, it’s wise to look at the bigger picture and consider the possibilities that this could affect in the future and how you will benefit from it.
5. Assess the present effects
Whenever news about cryptocurrencies dropping and declining in prices arises, the first thing that crypto enthusiasts feel is fear, followed by panic. They fear that all their assets may be gone in just a few hours and would then sell all of them without thinking 100%. If it’s difficult to see the path on where this is going, experts may recommend the safest thing to do would be to split your assets: sell some of your position today but leave some in case there is a potential upside in the next days.
6. Plan your actions carefully
When you feel calm and have pictured the situation and its effects, your last step would be how to act. Ask yourself important questions like if it is an opportunity in disguise or is it a risk that is likely to grow worse? If you see it as the former, you may want to hold your position to invest more; but if you see it as the latter, you may want to take your losses and stay out of the game for the future. Whichever choice you may want, you must think of it and act on it with a cool head.
Conclusion
Cryptocurrency prices going down can be traumatizing, especially for newbies in the industry. To help you come up with better actions, we’ve listed things above that you can do instead of rushing panic into the market. Whatever happens in the crypto market or with Bitcoin, remember that you would want to have an action plan that reflects your view on the potential risks and opportunities of cryptocurrencies.
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