Topic: How not to lose money after a dump (Read 406 times)

Analyzing what's your next step should be consider, don't just be too lazy or get frustrated whenever we lost at first to second try it is just like solving a Math problem so complicated but when we all have the data and possible solution then we will come up with a right decision.

Trading has its merits and for those that have really master it the profits can be better than holding this is why you see so many people wanting to be traders but the problem is that very few are able to get those kind of profits for the rest the best option will be to just hold for the long term but that is not something many want to do since that means being invested in a coin for years before seeing any kind of big profits.

there are many people who regret after selling panic and they are saying that panic is very bad same i recommend to other that don't get panicked dump will not stay forever these kind of time often come in bitcoin but the true believer passes the test and meet to the higher profits,

Just HODL your crypto assets in times of a dump because it eventually go back. I have experienced that with my crypto assets as its market value went down when bitcoin was down too in the first couple of weeks to start this year. I went on HODLing strong and i never visited any cryptomarkets for a while and just realized that bitcoin has climbed back already.

Sometimes, not seeing your portfolio in times of crashes/corrections can help you not to push the "Panic Sell" button.

I believe you have a fair point, and I would think a year is enough for things to recover in crypto but the climate must have changed now because crypto is really entering mainstream in terms of trading. Previously, whales and traders were the ones who made sells and buys, so when they went to sleep, the market slowly rose to new demand. But now, a lot of people are daily speculating and so are ICO token holders. Might wake up next year and find the market went on the bull run and retraced back again.

Yes you have invested only the money you can afford to lose but to hold your investment if you have compelling reasons to believe it’s going to go to zero is quite stupid.

How do you measure the risk? Have you got a thermometer or something? Bitcoin is a risky investment.

I agree that if the risk is low and the potential earnings very high you have to hold your investment (that’s what I do) but in some cases it is justified to sell.

I don't see a justification at all , as in any case you have only invested the money you afford to lose ( i hope... )

The risk you talk about is low, so it's stupid to sell because you are just recovering money you could afford to lose after all.
You still can live without that money, so recovering it is not useful.

But at the same time you are missing the probable big pumps of the years to come, the earning potential is 300x or way more for some altcoins, and you are missing it if you sell.

I agree bitcoin has nothing to do with the tulip bubble, and the former has fundamentals whereas the latter was an “asset” without fundamentals. Anyway, people should learn not to buy high and sell low, that’s the opposite of what people who make money do. For people to become holders they should learn a lot about the asset they are buying and then to buy them because they believe in its fundamentals.

But there is always a risk that the asset you have bought goes to zero, so in a few cases it is justified to sell.

News can be disturbing too, people panic because they read to many bad news, they come to forum read some fud comments and they make stupid reaction. News are the probably worst thing for all the holders, you read what WB or JP said, then you read some idiotic analyse from some central bank, or investment company. People get scared because they don't believe in outcome, they think that traditional can win over new age. World is advancing, many people can be stubborn and to hold to old valurs, but that is going down. Cutting loses isn't good strategy, but I presume for that knowledge we need to have experience and time spent here, let's call it a newbies mistake, I doubt that some experienced crypto person fall in that trap.

Yes holding your profits while bitcoin is dumping is a good strategy, because if you sell while the price is dumping is a big loss for you.   If i were you dont mind those who panic selling when the price volatility occur to prevent regrets just keep fighting for the sake of you're profits make some technical analysis instead.,  and read some news everyday and control your emotions , in fact bitcoin News is the best strategy to control your self to sell.

Hold or average down if you can afford it.

I can only think of HODLing my bitcoin for a long term and never mind much about crisis where cryptocurrencies got into the eye of the storm. Just HODL strong and if you can survive, surely good things awaits you after the storm.

Simple really if you are a long-term investor then you could just simply wait and hold never get the opinion or the movement of bitcoin today affects you because you're looking at a bigger picture. OP just need to set the target price he want to achieved but that target must be reasonable based on opinion and analysis.

It's very simple, HOLD and wait for the time that the price or value increase again but before that, it takes time before it will happen so be patient if you want not to lose your money for that dump. And holding the token is a good strategy when it comes to gain more profit.

Even holding is harder than what you may think, what about those that bought at 20k and lost more than half of their investment? Only a few very dedicated individuals will be able to hold until they get profits and if they had such a strong will then we need to ask ourselves why they did not wait for a better price? Holding is a good strategy and I believe in the potential of bitcoin but you make it seem as if it is the easiest thing to do in the world and that is not true.

Who cares if it may not work.
In all cases you should spend only what you afford to lose, not your life savings!


Example. Your life savings are $5k
Buy just $1k or $2k worth of BTC

So even if BTC price in the 2020 will be still $10k or less, who cares, keep hodling.
If you even lose that $1k you can keep living, and if you sell your Btc at that point, you earn nothing.

 So you better hodl and wait for the big pump to come

"If it's really that simple then the entire bitcoin network would just be a goldmine"
If we can educate more people to stop trying the scalping game and learn the hodler game, yes, it will become a goldmine : )
So let's spread the word and teach the Hodl trading style to the emotional sheep

It is indeed stupid to sell now, when bitcoin price has already went down around 50% from its all time high levels.

But is it really wise to say that every time this happens, just hold and wait for 1-2 years and you'll be able to reach new highs? If it's really that simple then the entire bitcoin network would just be a goldmine. While there are distinctions between bitcoin and the tulip mania, the psychological side of things are the same when it comes to FOMO.

How not to lose money during a dump? Either sell as soon as you see a trend reversal and take your existing profits, or if you are holding bitcoin for the long term, do exactly that. But holding for 1-2 years expecting a profit isn't going to always work as i said. It could take a decade to crypto to pick up its hype again and it's not always viable for people to do so, especially if they are buying BTC on credit(margin trading).

I'm a long term holder and not joining a pump and dump group. Alts is good for long term investment, it's not a typically good for a day trading. Yes you will lose money if you're more addicted on trading. Risk your money that you can afford to lose.

During major bitcoin retracements. Much better to hold bitcoin or hedge to USDT instead of buying alts. Buying alts will turn your money dumped to 50% or more. The best way to buy alts is when Bitcoin is about to rebound to a strong resistance.

I have come to learn too that it is all about HODLing, it is the best compares to trading. Most people think that trading is where they might get the value of their bitcoin but what they didn't know is that it lies with holding. It was hard for me when I started out because I usually trade but as times goes on, I got use to it. I am even planning to hold for two years to see where I end up. But as a hold, I brought out some amount of bitcoin for my gambling purpose..for I love to gamble with bitcoin sometimes. 

Wise, greedy actions only make poor and bankrupt.
after the dump to do is stop los or cut lose. but if you want to continue then make a purchase to back up.

I don't get why you say we need to be professional.

If you aim at scalping/daytrading then yes, that's for pros.

But HODLERS can be even kids and they make profits in this era.
Look at how much the BTC price grew up year after year.

If a kid bought $500 worth of BTC one year ago without selling, he would be having fun now.
It's that easy: buy and hold for 1-2 years.

The cryptomania has just begun and has a long way to go.
It's stupid to sell now, you need to learn to hodl at least 1 year

They think that if you invested in bitcoin you will earn a profit easily after you invested, Investing in bitcoin is not easy you need alot of skill and patience to become successful and you need to control your emotions on every situations like this.
You need to study trading before entering this game but your hardwork is worth because you can earn alot of profits here when you're already professional trader, That's the reason why other saying that bitcoin are shit due to lack of patience and lack of knowledges about crypto.

Just dont put everything you have in crypto. Diversify.

Bitcoin is still far from being a currency that you can use everyday.

I think that first mistake that people make when invest in Bitcoin is that they expect only profit and they are very disappointed when the situation turns out different.
There is no investment that only brings profit. So from the start you have to have the strategy what to do when price starts falling and how will you deal with losses.
You have to know clearly what will you do on long term and short term strategy.
Always diversify your investment, don't expect miracles to happen and count with losses.

This seems fun, let me be the devil's advocate once


So loving tulips means you're ignorant?


I think that at least 1% of this forum can copy paste a bit of code and create a coin.
I doubt that 0.1% of them would be able to cultivate a few flowers.


You use Gargamel math
The price was 20 000, it went down to 5000, but you don't consider it a 75% drop but a 300% drop.
15000/5000 stuff.


How , by wiring money via banks to buy BTC.
Trading like the FTSE?
Storing your coins in an online wallet like a bank?
Since 2013...I still have to see a real "change". But none happened.

The one that changed...was BTC

Either they are trading on margin or they are referring to 100(1 - 100 / 350) = 72.4% loss. The loss was actually 72.4% but they're calling it 350% because if they had sold at the top and rebought at the bottom, they would have 350% more coins, like me.

How can you have a -350% loss? Doesn't make mathematical sense.

No good holding everything you've got in bitcoin. You've got to have a time to cash out and a time to buy, as a speculator. No speculator ever hangs onto their entire portfolio and not liquidate one single asset.

While I do agree with spreading a portion of your portfolio into cryptos, and hold that for the long term in case SHTF, you can probably be a lot smarter than just holding. It's obvious problems that people aren't experienced with the markets and blindly investing, then panic selling as the markets go down. But holding until you make a profit not always works in practice.

Too many people think that bitcoin is something like tulip mania. But they forget that crypto is changing the financial world. But tulip mania had nothing to change. So this is not same. Crypto is changing the world financial structure.

that may be true but from what i see, it is not just because of fear or FUD,... it is because the bitcoin market is filled with newbies playing at trading while they don't understand what they are doing. so they panic sell and panic buy and cause a chaos like this.


i don't know how you calculate drop but when you are talking about "price drops in percentage" it can not be anything smaller than -100%! and -100% means going to zero.
the calculation is simple too:
since price2 can not be lower than 0 (bitcoin can not be worth -$150 for example!!) the result is at least -100%

Thank you , but if we know the market will be dumped before it will happen which should be very great.

Different people have different way of thinking on how to deal with the price dump. Honestly, it's not our responsilibity to tell those people who are not used to experienced crash about what should they do during a crash. For me, it's better that they made some mistakes or wrong decision because that will served them as reference for making a good and better decision in the future.

Just hope so that after dealing with price crash for long, they really learned.

---

-Take the risks

-Fight with your emotions

-Patience

-Don't panic for less margin decrease

But I will asked you first, why should you hold? You will automatically know what is the best solution.

 

Hold, hold , hold...
What can we do ? Anyone has better solution?

Democracy has nothing to do with algorithms. Democracy is about the community having a vote.

With bitcoin, teh community has no say, they've been protesting about fees for about a year and the small elite that controls bitcoin ignored them.

Bitcoin fees have now fallen - but only because transactions are at 2016 levels. People have switched to using alts. Voting with their wallets. I guess that's a form of democracy.

Tulips
They felt in love because they were ignorant in those days. Tulips can be cultivated almost anywhere so that price pump made no sense if they were not ignorant.

Gold
At least it is scarce as well, you cannot create/cultivate it.


Bitcoin

It is not tangible, right. But you omitted something: is USD tangible ?
USD is even worse: its supply and public debt are determined by a few individuals, by just writing a number on a computer !

At least BTC supply is "democratic", it is done by an algorithm.

OP, your analysis is clouded by emotion and your fondness for bitcoin.  The fact is that while it's great that bitcoin is bankless and government-less, the world would be just fine without it, and it's sometimes worse than fiat. 

Tulips did have a use as ornamentation and people fell in love with them back in the mania days.  Gold is similar--people love it but it doesn't have many practical uses.  Bitcoin isn't even tangible.  So watch out.  A lot of investors think like you do during bubbles, that [insert bubble asset here] is different, that it's not like all the other bubble assets.  And invariably they turn out to be mistaken.   

I don't know if crypto is truly in a bubble, but people sound a whole lot like suckers sometimes, and it makes my skin itch when I'm holding bitcoin.

There's a big pump&dump every year, we have seen this story to repeat every year since BTC was born.

When it pumps, it pumps more than it did the previous year.
So when it dumps hard i just HODL and don't care.
Even if it drops to $1k today.

Now, is this a good strategy?
Why many get scared and sell?

Because of their typical fears:
Crypto can drop to 0 overnight , it is a temporary trend.
Crypto is like Tulip mania https://en.wikipedia.org/wiki/Tulip_mania
blah blah

I think those phrases are a totally wrong analysis.
You simply cannot mix different assets and think they have all the same potential.
You cannot say Tulip Bulb = Gold = Bitcoin just because "an asset is an asset, they are all the same and can go to 0".

They are different, some of them are likely to be worth nothing and drop to 0 with no recover, other will never do that.
Every asset has different properties that determine their potential to grow or drop.


Tulip bulb had no potential
No intrinsic value: it's not scarce, it can be found in many places, PLUS does not have an actual use, totally useless.
What are the reasons why the price pumped?
Just marketing and no substance. Doomed to failure.

Gold has potential
it is scarce, PLUS this metal is used in tech industries due to its properties , so it has an actual use as well.
Try asking yourself why every time there's a big international war/threat, everybody buys gold and it's price goes up.

What about Bitcoin ?
it is somewhat scarce due to the supply limit,
PLUS it is a big technological and social/economical revolution.
It is not made just for speculation, as its creator made it for one specific and useful purpose : free the people from poverty and gov tiranny.
So it has a HUGE actual use as well

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The price dropped by -350% ?
HODL and go to sleep for one year

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