Dogecoin may be a lighthearted joke, but it's no laughing matter when your money is involved. Jim Cramer – host of “Mad Money” on CNBC – recently claimed that Dogecoin is security eventually regulated. Is Doge A Security? Cramer issued a warning about the meme coin in a tweet on Thursday. Were the SEC to agree with his assessment, he suspects exchanges will come under fire for making money from newly “created” Dogecoin. “Please be careful with Dogecoin...It is a…
The crypto market is currently in one of its biggest meltdowns in history, with Bitcoin losing more than half of its value after hitting an all-time high of around $63,000 in May 2021. Bitcoin’s price slump has further been compounded by China’s continued FUD leading to market uncertainty and scaring away investors. The ripple effect of the Bitcoin price plunge has been felt across the cryptocurrency market, with major altcoins including Ethereum, BNB, DOGE, ADA all losing between 7 to 22% of their value.
As the crypto market continues to crash, it is natural to resort to panic selling in an attempt to save your assets. However, selling your coins due to panic is not a good idea and can substantially hurt your long-term financial health. What’s more, panic selling can potentially lock you in losses and ruin your financial growth.
As the cryptocurrency market continues to bleed out, you shouldn’t be worried. In fact, it may be a good time to invest by buying deep and diversifying your portfolio. Here are five reasons you shouldn’t be worried even as the crypto market continues to plunge.
Market Downturns Tend to Be Succeeded by Upturns
Financial markets, including the crypto market, have always bounced back even after drastic sell-offs. With this assurance, you ought not to worry even when the market bleeds out, especially if you’re a long-term investor- there’s always light at the end of the tunnel. In its history, Bitcoin has crashed a whopping 13 times, with the worst price plunge being in 2013 where the coin lost 87% of its value in just three days. Even after this crash, Bitcoin recovered, even reaching an all-time high of $65,000 in 2021.
One thing the crypto market has taught us, especially Bitcoin, is that never crashes last. It may take years for the market to recover, but one thing is for sure, the market always recovers. It’s best to avoid panics and be patient, as crashes always precede market upturns.
It’s Time to Buy Dip
Market crashes constantly present a perfect opportunity for buying deep. Moreover, enormous price dips lead to significant market uptrends meaning enhanced profit margins. As other traders start to panic, selling their assets, you should keep calm and accumulate more crypto if possible.
When buying the dip is a time-tested strategy for generating high returns. However, buying in the deep doesn’t mean that you should buy assets when the price is plunging, and the market is pretty volatile. Instead, it would help if you bought your preferred coin when the market has dropped and settled with no significant price movements.
Bad market times make good buys. Nonetheless, you ought to ensure due diligence and be guided by technical indicators such as short-term and long-term MA and historical support levels, among other indicators.
Watch Out for Lucrative Opportunities
The good thing with the crypto market is that there are over 5000 coins to trade, providing traders great versatility and an opportunity to diversify their investments. Furthermore, whenever the market is crashing, not all coins lose value. In addition, some coins increase in value at the backdrop of a market crash, providing a perfect investment opportunity. As such, whenever there’s a market crash, take time to analyze the market and identify coins that may be going against the market plunge and invest in them.
Time to Test your HODL Strategy
Market dips are not a time to get worried. Instead, they offer a perfect opportunity for testing your HODL strategy. HODL is a crypto slang referring to buying and holding coins. An effective holding strategy comes in handy to avert the effects of short-term volatility and enhance returns in the long term. In market dips, implement your HODL strategy by buying your preferred digital asset, holding them for a particular period, and selling them for profit.
The Bottom Line
Despite cryptocurrencies being highly volatile, they are subject to market crashes, recoveries, and uptrends. For most traders and even investors, market crashes are one of the worst fears, with a possibility of wiping out their entire gains. However, crypto market crashes are a natural phenomenon that shouldn’t worry anyone. After all, the market always recovers after a crash. While it may take days or even years for the market to recover, it will ultimately recover.
With comprehensive research coupled with a solid trading plan, you can always overcome a market crash and even realize higher returns. Market crashes should be the least of your worries in the crypto space-they are bound to happen no matter what.