Buy or Sell: What to do in Volatile Moments Involving Cryptocurrencies
Volatility isn’t something new to any seasoned crypto investor. Oscillations in prices are responsible for the huge profits in the long term.
Cryptocurrencies, in general, are facing a downtrend and some users are afraid about it — what’s the correct course to follow? Should you HODL or sell to minimize your losses?
Holding in difficult moments
This is not the first time that cryptocurrencies are facing a red tide when it comes to market value. However, volatility can be a bit overwhelming to those who don’t know the market as they should.
You should not invest anything that could compromise your financial stability. If you place your bets on something according to your possibilities, everything will be easier to overcome.
Diversify your portfolio
Maybe you just bought crypto that isn’t doing great at all. You could swap your coins and get another one to make things more stable and profitable.
It’s not a good idea to put all your money into a single project; try to get a few different altcoins that show promise instead.
You can improve your profits in the long-term and make a much more secure portfolio that way — you’re your bank. Remember that.
The moment to buy
Lots of users are buying crypto when their prices are reaching all-time highs and selling them over panic when prices are going down fast. That’s a very common (and fatal) error.
On the other hand, buying crypto during a free fall could be a bad idea too — you don’t have any signs that the downtrend has finally come to an end.
It’s difficult to predict the best entry point, though, if you’re not a seasoned analyst. But crypto usually shows promise a few weeks after a long downtrend — prices begin to go up, the negotiated volume starts to rise, and investors begin to feel a bit more confident.
The bottom line
Nothing is better than being straight and honest: you should get used to high volatility if you want to invest in cryptocurrencies. After all, volatility is going to be reduced eventually.
Building a strong portfolio can help you escape the negative effects of it and make your profits even bigger in the long term.
CSHOP, our native token, for instance, is a great bet for the long-term; e-commerce it’s one of the biggest online niches in the whole world and it’s getting even bigger with the new technologies.
You can buy and sell any goods and services with it, or even get some for long-term investing. Decentralization means that’s up to you to choose the best course of action.