Waiting For The Crypto Comeback
So…crypto is kind of not doing well right now. You checked your crypto wallet and it’s value might have been halved if you’re really unfortunate. The question now is, is it time to dump or sell all your crypto before the value gets even lower? Do you eject from the crypto ship in hopes of not burning up upon descent?
In other words, is it time to panic?
Well, the truth of the matter is, it depends on a lot of factors. But for the most part, please don’t panic. As they say about shark attacks, avoid kicking around in the water lest you’ll be found by a shark and dragged down to the deep blue depths.
Thankfully, we are not alone in the ocean where every move is essential to survival. It is pretty similar though but only if you start panicking right now. Consider these things first before making any moves.
High Rewards Also Mean High Risk
One of the biggest reasons why a lot of investors were lured in by bitcoin, dogecoin, and other crypto was the insane peaks it gets from time to time. We’ve all heard about the early bitcoin adopters who became millionaires within months because of perfect timing. It’s amazing and unlike any other investment or business model.
But then, this also means that the opposite is also possible. While the value of digital currency may rise up at crazy speeds, this also means it can plunge at any time. That’s why experts remind everyone who wants to start investing in crypto that you should only invest money that you won’t mind losing.
Don’t get sad yet. Yes, crypto might be in freefall now but as what we’ve seen historically, it is possible for it to shoot up in a heartbeat. It’s scary but it’s also why young investors like the challenge.
Should I Buy More While It’s Dirt Cheap?
You may be thinking, “it’s insanely cheap now, time to buy more bitcoin!” Sure, go ahead. But only if you’re not scared of losing it. As tempting as it is to buy and buy and buy crypto now, you still have to be careful that you don’t spend too much, too fast.
Mind you that this is not just for cryptocurrency. For any investment, there’s such a thing as return of investment. If you don’t know what this is, well, stop investing in anything right now. You’re not yet ready. But just in case you just forgot because of the dazzling prices of ethereum and ape coin, here’s a reminder. You can’t liquidate investments just like that. Knowing the proper time to sell crypto is crucial.
So if you plan to buy crypto, just buy crypto with money that you can let go now then return to it later when its value has increased.
How Much Have You Invested?
Be honest with yourself, are you panicking because you invested too much? Did you dip into your life savings because of the recent dip and then the following day, it dipped even lower? Well, that’s just how it is.
If possible, it’s best to wait it out. Experts do see cryptocurrency bouncing back at some point. But, of course, it will be up to you and your current situation. If you desperately need to get the money back or at the very least, minimize your losses, wait for when your crypto of choice hits a peak then sell. But, if you can, wait it out.
The World Economy Is In Flux
While yes, crypto is very volatile and its perceived value can change within a minute, there are actually a lot of factors why it’s going down now. To summarize it in one sentence: Crypto is down because the entire world economy is going down.
While it was originally thought of as inflation-proof and safe from other external factors, crypto’s current freefall is actually the result of new laws and the result of world conflicts that are actually pulling a lot of business down along with it. A lot of experts thought that crypto would be safe from the results of wars and such but as crypto (especially bitcoin and ethereum) became more accepted and integrated into the economy, the more that it was more susceptible to the rise and fall of the system.
So as fuel prices increase and many industries start to tank, crypto is inevitably being pulled down along with it. It is still in its infancy stage after all so there are still new challenges that are bound to happen. But along with it, new rewards for those who chose to stick around.
But for how long is anybody’s intelligent guess. Some experts believe it may last for up to six months up to a year. As of this writing, a lot of crypto currencies are actually recovering in value. Realistically, it may not even recover at all. But that’s just investing for you, you win some or lose some. That’s why a popular suggestion nowadays is to just not check your crypto wallet for now. Let it percolate in hopes that you’re a millionaire the next time you open it.