The Cryptocurrency markets are all red and the downfall continues to the second day. Except for ETH(Ethereum), every major cryptocurrency and most of the new or upcoming altcoins are facing the wrath of the markets. The news from China, that the country is slowly planning to drive away all the bitcoin miners, the Korean government regulations on cryptocurrency trading and the restrictions by Indian Government stopping a potential billion investors to invest or trade cryptocurrencies are all affecting the market.
Bitcoin is down by 3%, Ripple by over 7%, Cardano, Litecoin, NEM, Stellar and IOTA are all in the red zone. The news that the wall street fund managers who were planning to launch leveraged ETF funds have pulled out amid SEC concerns is not helping the market either.
Dollar Cost Averaging Cryptocurrencies
Unfortunately, while everything seems to be going wrong currently, the current prices are a blessing in disguise for investors who got on the bandwagon at All-Time-Highs. If you are someone who bought Litecoin at $350, Ripple at $3.4 and Bitcoin recently at $17000, then there’s a way to shorten your losses or potentially increase your profits by buying at the current dip. For many new investors, this may sound like a crazy idea, but all this is a simple math.
You bought a 1000 Ripple at $3.4, that’s $3400. If you currently buy at the dip $2.3, say another 1000 at $2300, you would be averaging your 2000 ripple coins at $2.85. Now, the price of the ripple only has to go up to 2.85 for you to walk away loss-free. Of course, all this makes sense if you seriously believe in the underlying technology, developer ecosystem and future potential.
Not so long ago, When Bitcoin crossed $10,000 for the first time, the news from China, that they will be banning Bitcoins, have crashed the price and reduced it to around 50%. That’s as a bear market as it gets at any point in Cryptocurrencies, yet we survived and came back running close to $20K.
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Millions of Investors
The markets are very matured now. It’s not the same as 2016, where only a handful of investors across the world believed and traded in Cryptocurrencies. The USA alone has around 12 million people who are invested in some capacity in the market. Countries like Japan and Korea have almost half their population invested, China, India is showing solid interest in the Cryptocurrencies(Based on Number and Volume in New Exchanges across India) which together be a 100 million people.
The above statistics is to only make you feel that you are not all alone in the game. The technology is solid and the problems it solves are real. Unless you are invested in a currency which doesn’t have a real product(Hey Tron, This is you) and have a very weak developer talent, you could use the dollar cost averaging to get into the profit zone or avoid loss.
If you want to have a 360 view of what’s happening in crypto, check out real-time news, tweets and Reddit dashboard.
While you will see some of these new investors selling off at the first sight of a red ticker, when the markets come back to green, they will realize and learn like we all did in the early stages of the market.
For now, HODL in the coins you believe and trust and sell off the shi* coins.