What To Do in a crypto downturn

0
19

With interest rates rising in the United States and the world starting to emerge from COVID, financial conditions across the globe have tightened. Bitcoin and Ethereum are both down more than 50% from their all-time highs.

The season of “up only”, a term commonly used on crypto Twitter, has come to a close.

So, what can you do when things go sideways or down for a bit?

Here are five ideas that may help

1. Forget your peak net worth number

Even though it’s difficult, try to avoid obsessing over the loan you could have paid off, the house you could have bought, or the riches you could have been swimming in.

Anchoring yourself to this number as a goal will likely lead to biased decision making.

Instead, try journal about what happened to your investment and what you might change in the future.

  • Did you not take profits as you had planned or not leave enough cash on the sidelines for a dip?
  • Were you listening to the wrong influencers?
  • Did you “marry your bags” and focus too much on a project’s hype instead of its fundamentals?
  • Did you not have a plan in the first place?

Identifying these habits can help you get better results in the future. But the first step is acknowledging the problem.

2. Avoid revenge trading and FOMO

If you’re down substantially from your portfolio highs, you’re likely not going to make it back on one trade.

Yet, this doesn’t prevent people from revenge trading, or trying to recover a large loss from…

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here