Did you just get into cryptocurrency, expecting to see gains based on what you’ve been reading on the internet, but all you’re seeing is a downward turn? Everything just seems to be showing red, and you don’t understand what is happening.
As a result, you’re wondering if crypto is dying and everything you’ve read online is a lie, just like how you keep losing on your NASCAR odds wager when you’ve been promised consistent wins.
That is completely normal because most experts don’t highlight the bear season as much as they do with the bullish period. We would like to believe cryptocurrency is not dying, and even if that’s going to happen, it will take a long time for us to get there. Therefore, you just entered when we’re having a massive dipping season.
In that case, you need to find a way to navigate through this period if you want to survive your first bearish trend. As a result, we’ve put together a simple guide to help you understand what is going on. Keep reading to find out more.
Understanding the Season
The first thing you have to do is understand the period to find a way to analyze what is going on and how it affects your investment. Undoubtedly, this is straightforward. In this period, crypto coins and tokens are losing value, and as the market keeps going downward, you’ll continue to lose the money you invested.
As a result, that is a cause for alarm because nobody wants to keep losing money to something they don’t understand. That is why you should start engaging your community and ask questions to know what is causing the dip and if there are any speculations about how long it will take.
Once you find out, you’ll understand what it takes to get through the season. From records, the dip is temporary, and after a while, we start to see gains and an upward trend where holders will make a lot of money.
How to Survive this Period
Surviving this period is not easy, especially if you’re new to the market. It is a daunting task that requires plenty of patience, and unless you have a strong conviction, you might be tempted to get out of your investment. As a result, you’ll only lose money to the market, and when the green season comes along, you’ll miss out on making gains.
Therefore, you need a plan to ensure that you survive this painful period as you see your money go down daily. In that case, if you want to survive the dipping period, you should follow the tips below:
- Buy the dip with any extra cash you don’t need for now
- Engage with experts in your community
- Set a target date for holding
- Hunt for airdrops and giveaways
With these tips, you can get through the dipping period, and once it is over, there is a good chance you’ll make massive gains. Aside from that, you can even be lucky that the bull period is around for a long time.
Should You HODL or Take Your Money
One of the biggest questions you might ask is what you should do? Should you take your money out, or should you join the number of holders? Truthfully, it all depends on your level of risk. You need to understand your risk management abilities and how well you can handle losses.
If you are among the tough bettors that are resilient and can take a massive amount of loss, you should keep your position and hold your asset. What we know is that crypto always bounces back. The only problem is that there is no date or time for when that will happen. As you wait, you can even buy the dip.
However, if you’re not a strong investor and entered crypto because it looks like a way to make quick bucks, you should take your money. The reason is that it can keep dipping. In the past, we’ve seen Bitcoin take a 60% dip. Therefore, you might not have the heart to take a high dipping level.
When it comes to crypto, you should know that there are periods when the market goes down, and you might lose most of your money during the season. Therefore, you need to understand what you are getting into before starting. In that case, you should research different sites and articles to keep yourself up to date.