I have been around the crypto game for years. I have seen mania and depression and everything in between.
We are in the middle of depression.
It is very easy to “HODL”, during flash crashes because everybody knows it’s going to bounce back. It is much more difficult to stay in there while the value of tokens and coins bleeds out, with what seems like no end in sight. You go into the forums, and people are talking about seeing Bitcoin at $8K or below again.
We have no good news on the horizon, people worrying about the solvency of tether, the CME futures closing this week, rumors that South Korea wants to ban Bitcoin, China is shutting down mining… People are in a bad mood, and it reminds me of September 2017.
Back in September 2017, people were souring on ICOs. They declared that you couldn’t make money anymore buying into an ICO. EOS dropped below ICO price. SALT dropped below ICO price. Nobody wanted the stuff, but I posted that it’s the perfect time to buy.
“Buy when there’s blood in the streets”.
If everybody is saying a recovery is right around the corner, then we don’t have blood in the streets.
If you bought EOS at $.50 back then, then you made 25X your investment. If you bought SALT, then you made 6X.
I’m not at all saying that’s the case here, but I think it would be very difficult to make the argument that there will never be another upturn or period of optimism in cryptocurrency… so if you believe there will be, then about right now is exactly what a buy signal feels like.
If you managed not to sell anything on the way down, and you’re having trouble sleeping at night, then you have too much money in cryptocurrency. Instead of buying more, you should either grit your teeth and make it through this or cut your losses to the point that you can start sleeping again.
If you would like to be notified of new blog posts in the future, you can sign up for my mailing list here: https://mailchi.mp/7a1f410599f7/mailing-list