In the last few years, cryptocurrency has become a leading trend worldwide. More people are starting to treat digital currency seriously, as it is labelled as the best alternative to fiat or traditional currency by many global leaders.
However, cryptocurrency including Bitcoin (BTC) is highly volatile and its prices soar and then crash as quickly.
As a Bitcoin holder, you might be observing fundamental developments that swiftly take shape in the market after a Bitcoin dip takes place. For example, Bitcoin hit an all-time high of around $69,000 in November 2021 but has lost its value, plummeting to $40,000 in April 2022.
The volatility presents a profit-making opportunity to some, but it is nerve-wracking for beginners.
Well, you must be wondering how you can survive a Bitcoin dip.
So, let us find out what you need to do to avoid losing when the value of Bitcoin falls.
4 Things to do when Bitcoin Falls
Scared by the fall in Bitcoin price or overwhelmed at the prospect of buying it cheaper? Either way, listed below are some important things you need to follow.
Avoid Being Emotional
Whether you want to buy more or decide to sell your Bitcoin when a dip takes place, you need to stay calm. Carl Runefelt, alias, The Moon, is a global crypto leader who believes that you need to avoid being emotional when trading cryptocurrency.
When you make emotional decisions, especially trading cryptocurrency, it rarely results in anything positive.
Carl says, “When Bitcoin or when the world is in some type of volatility some kind of uncertainty, I think that is generally something strong for Bitcoin because Bitcoin has zero third-party risk so no matter what happens you never have any third-party risk against anything. So, Bitcoin is the safest place in the world to put your money or put your wealth.”
Assess the Situation
Are your decisions driven by trends or fundamental news in the market? As a Bitcoin holder, you need to be vigilant and take your decisions based on logical reasoning to avoid losses.
The value of Bitcoin can plunge at any time, but it is in your hands to utilize the situation comprehensively. Experts advise that you need to carry rigorous market study and notice the factors which affect a particular cryptocurrency.
Carl emphasizes, “Looking at Bitcoin in the short period defeats the purpose of what Bitcoin is. Bitcoin is a long-term solution to a broken financial system, and I think in the next five years or in the next 10 years that’s the kind of time horizon I have when I look at Bitcoin,”
So, you will be in a better position to decide about your next move when you study recent Bitcoin trends.
Start Accumulating
You must remember that volatility is the name of the game, and the market can swing anytime. Professional traders always take advantage of such situations and start accumulating Bitcoin when its price falls.
Carl says, “keep accumulating all the time within your budget essentially and I think the big goal that is of course a cool thing is to own one Bitcoin because one Bitcoin is actually now quite expensive but soon it is going to be absolutely unobtainable for a normal person.”
So, a Bitcoin dip can be a blessing in disguise!
You can buy more Bitcoin when its value falls and can make huge profits when the market is bullish.
Carl is pushing for the mass adoption of cryptocurrency and is building trustworthiness and security around it through his YouTube channel, The Moon.
Evaluate the Future
Is your country going to ban cryptocurrency? How will Bitcoin respond in times of uncertainty like a war? Well, such questions can perplex your mind, and you may rush to take decisions without evaluating the future.
However, experts recommend that you need to stay calm and analyze your next move with great care.
Carl believes that Bitcoin is highly secure and presents an excellent investment opportunity. He says, “Obviously, gold is also extremely safe. But I would say that Bitcoin is safer because of course it’s online no one can just steal it or hack it. Bitcoin is harder, so in times of uncertainty I think Bitcoin is going to prove to be very strong.”
Keep Your Faith in Bitcoin
You may feel rattled due to a plunge in the cryptocurrency markets. However, Bitcoin has rallied back hard following major declines in the past.
Carl says, “Bitcoin is the best hedge against inflation that we have in the world right now and Bitcoin is also the best form of money that we have and have maybe ever seen in the history of humans.”
The protocols of Bitcoin are designed in a way to halve extra Bitcoins over a year. Furthermore, its transactions are recorded in a public distributed ledger called a blockchain that is encrypted by cryptography.
So, you need to keep your faith in Bitcoin and act wisely to avoid losses when a market dip takes place.
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