The current correction in the cryptocurrency and stock markets is getting pretty boring for everyone. You just want to sell everything in your portfolio and, as my mum's friends used to say, "get a proper job".
In the meantime, we bring to your attention Cryptex, a cryptocurrency exchange. The platform has a wide range of useful tools and a user-friendly interface that allows you to instantly make a transaction at any convenient moment. You can exchange cryptocurrency on Cryptex at a favorable cost, it is completely anonymous and provides its users with an opportunity to invest in cryptocurrency without a long registration and confirmation of their identity.
Today we will analyze the basic rules of investor behavior during a down-trend, without which it will be virtually impossible not to drain your capital completely.
1. Don't panic and try to keep a cool head.
Sure, you have heard this rule many times before and it probably seems obvious to everyone by now. But it is important not only to know that giving in to emotions during a market downturn is not a good idea, but also to really try to keep a cool head.
By fearing to suffer even greater losses, your decisions can be impulsive and welcome to even more negative consequences.
"Anxiety selectively turns off certain connections to screen out irrelevant information. Because of this, it becomes difficult for the brain to make better decisions."
This means that you need to think several times before you make any trading decision (or not make a trade).
2. Don't try to recoup investments and losses.
The most dangerous thing to do is try to recoup losses from a falling market with margin trading or, God forbid, futures trading. Accept your losses, meditate, drink coffee or something stronger, but never gamble with the market - you simply won't stand a chance.
3. Don't follow the charts for days and nights.
This point still applies to the first rule: don't panic. If you zombie your computer all day long, you will definitely go crazy, get confused and keep losing money.
All the losses you may have incurred are just experiences you have had and which you can use in the future. No one is saying that you shouldn't analyse your mistakes - in fact, you should.
Think about when and why you might have taken a profit, when it was better to refrain from trading, and when it was better to short the market. Then decide on your next steps: make up a plan of action, a strategy that you will stick to, but do not sit up and down 24/7.
4. Understand that the market is cyclical and corrections cannot be avoided.
Think back to why you started trading this market in the first place? You were probably impressed by the prospects of the cryptocurrency market, saw the frenetic pace of its development and wanted to become part of this huge universe.
Well, new projects, ideas, funds are not going anywhere - they are experiencing the correction along with you and are also counting on further growth. A bunch of projects are getting ready to launch tokens, attract investments from the "big guys" and you, as a cool trader/investor, can make money on that.
On top of that, a temporary drop in the market means less competition. You're not the only one who starts panicking during a down-trend, but your differentiator is that you don't give up.
A lot of punters (punters, not investors) get scared and run away from trading. But if you understand why the crypto market is the technological breakthrough of the 21st century, you won't be in danger of losing capital here.
This market is making money, and sometimes really big money, for a lot of people around the world, and they are all interested in developing it further. The numbers are big: the capitalization of funds and business angels is growing, the number and value of miners and mining farms is impressive, and there is a huge budget for airdrop, allocation and other tools.
So, if you are keeping your finger on the pulse, following the news, constantly updating your knowledge and learning new things, the probability to lose money in this market is negligible for you.
What's more, a correction is a time of opportunity. All chances to dump unnecessary assets to those who are trying to average and buy something more worthwhile you have. You can exchange cryptocurrency on Cryptex at a favorable cost, it is completely anonymous and provides its users with an opportunity to invest in cryptocurrency without a long registration and confirmation of their identity. Explore the benefits of our the best high yield savings account, offering competitive interest rates and security for your funds. Start earning more with a reliable and hassle-free savings solution.