Topic: Three things not to do when Bitcoin prices are down (Read 642 times)

One major thing to always do when prices are down is to just keep buying as much as you can. You have been holding before from the peak after buying the peak, or you have been waiting for the right moment to buy at a very good price, the thing with a down market is to always think of buying and selling should always be the last option when it comes to conditions like this.

For what it is worth, the market will not remain in a downtrend position forever and this is how very smart individuals take advantage of the market in that regard.

In fact, you can read different opinions, sometimes very opposite

Another fact, which is called selection bias, is that the supporters of the HODL approach may be just a little more vocal than those who silently follow other strategies. In this manner, you may inadvertently come to a conclusion that "hodling" is a dominating avenue of pursuing profits in the cryptoworld among the local population, while in reality it may be quite the other way around. Recently this strategy hasn't been very profitable (mildly speaking) and so you hear a lot of noise about it as those who actually earn money are typically not very much inclined to tell the world about their success



As the saying goes, silence is the sound of money talking

I'm not fully agree with the 2nd thing, why we should not sell when the price is rising? If I have a target of profit and my target is reached while it is raising, I will sell it without any doubts. Probably I will not sell it all but I will keep some percent for higher price.
My main purpose is obviously for getting profit, so when there is a chance to get profit then I'll take it no matter what is happening with the price.

Yeah right, the aspect of knowing when to buy, when to sell, how to play with the market is something that would be very hard for most people to do. Usually, a sane trader will know what it is like to be joining FOMO and why he should not, most especially when a market is overbought, but these are terms or conditions that only those who have an understanding of the way market is and know how to trade it or make decisions based on those conditions.

The best advice overall for most people who do not have much understanding of the market is to just hold and buy the dips more if they have the chance. Anything outside that and with what the OP said, anyone without the knowledge will not understand.

You are correct, I cannot call this as a guide to someone who does not know anything about trading. This at best only serves as a reminder for people who already know what they are doing in the cryptocurrency market. To tell you frankly the guide he simply posted really is not benefiting to anyone who already know what they are doing as they will not see this post as helpful. For people who want to understand what OP is trying to say you better start learning technical analysis and the terms involve with it as you will really be left out with what he is trying to say.

The three major things which we need to do when price of BTC is low that just keep your coins with you, don't sell them untill or unless their is any urgent need.Second, if you are not having enough coins in your wallet just purchase new coins at this time and third and the most important thing is don't panic at all because panic selling contribute to dump.

Your first point is probably one of the most common mistakes that I see people making in this market, they always want to buy bitcoin at the cheapest possible price and while some are lucky and can do exactly that, as long as you buy when the price is low enough then you're going to make profits in the future and there is no point stressing over it like many people do.

What a great advices,thanks for this dude,as i am always been staring at the chart but can manage to hold,and never be affected to become panicked

And i never sell when pices are rising because patience is the virtue to stay long and gaining here in cryptocurrency

One thing that is flawed in what he has said is simply the fact that this is not a list of things everyone will be able to do and only those who have some good knowledge on probably analyzing the charts, identifying what a bottom looks like and when to accumulate, or identifying when to be selling based on a trend changing, will obviously be able to do some of the things he has mentioned.

Until you do not have knowledge to make important decisions, I would not even advise anyone to just go with whatever that just comes to head, but should rather just focus on the long term, buy lower prices as long as they have the cash to buy and then hold for as long as they can. I am sure in 5 years from now; the market will not be the way it is currently.

Looking at most of the things that have been said by the OP, it can only be applicable to someone who knows how to trade, who can identify a bottom and a market about switching trends, who would obviously know when to sell and all of that.

Generally, this is a decision a bunch of people may not be able to make since they have little or no knowledge to some of the ways they can make this a reality which in this case, and like you said, the best thing is to just HODL what you have, buy and keep buying as the market keeps going down and never dropping the HODL idea from your head in any case.

As long as you are not joining FOMO and you are not panicking as a result of FUD to sell at loss, but rather take advantage of a bleeding market, then you will be fine.

Funny.  To say this is easy but to do it is very difficult. Have you heard of addiction? If you are addicted to something, it is difficult to just take a decision against it and moreover, it is the emotion and finance that we are talking about here.

Yeah you are right; there is huge volatility in the price of bitcoin. Vicissitudes now builten with bitcoin price. Investors should understand this and prepare themselves for any conditions. The price is almost stable between $6000 and $7000. Anything could be happen in the near future but we should be optimistic and never panic about the dip in the price.

Instead of selling them for loos it is better to stay away from the market when the price is kept declining otherwise you will be losing the value. When the price is kept decreasing we will become panic about the market and start selling them at a low price.

Not sell when prices are rising? I don't sell at any particular time since I have a fixed timeframe and expenses, but I do try to time a little if prices seem to be rising to delay.

In fact, almost anyone who's been selling when prices rise over the past few months would have scalped decent amounts. Trade channels seem to suggest some have done this with success. The past few rises have also reached lower highs, stemmed by higher lows for sure, but they're making all those single digit percentage profits.

All I'm saying. No "mistakes" except to go with your gut, in ehich case, yeah you have good points.

yes probably a good decision to avoid being greedy or panicking. And it's a big help as well to become not frustrated on it, because honestly that is the common reason nowadays why holders is hopeless . So much better to stay way on it for a while and do something else . Lol

The guy used a spinner (or manually) to rewrite an article from the Hackernoon https://hackernoon.com/3-things-not-to-do-when-bitcoin-is-going-down-e80097d15796 [3 Things Not to Do When Bitcoin is Going Down]

Pathetic. Trying to look smart by the using the idea from others. On the top of that, not smart to spin an article correctly. pff

I agree mate, day trades will kill us by the time your expectation will not hit the target. Possible panic will create massive changes for the price in the marketplaces, and yet if many people was influenced it will became chaos which definitely disappointing for every holders. Holding coins for long term is really suggested during the declined price of coins in the marketplace, and its just a matter of survival methods.

here first the person has to know how to identify the bottom correctly


Hmm, I think the person should sell whenever he realizes that the price has gone up and he has profits, But in the case of buying and insuring for many years then it is better not to sell when the price goes up


this will be effective for those who buy and hold for a long time, because for day trade does not work

I think the most popular thing to do on this forum is to just HODL. I tend to take a break from crypto when the price is in decline.

This is good advice but I think you left the most important thing that you should not do when the price is going down, and that is to not sell in panic, if you're going to sell your coins you need to do it because you are either obtaining profits or because you are leaving behind a position that you opened and you realized that you made a mistake, you never sell because you are in panic that is the fast way to lose all your money.

I wish everyone can think in a way where they so much focus on the future than trying to get their emotions driven up by current outcomes of market. A downtrend is a normal thing, but it is always a good thing to be well informed on how you really should be going about things than panicking or making the wrong moves in a market as the case may be.

As long as you have your goals and you look forward to achieving those goals, equipping yourself with knowledge to make good decisions will always be there.

You explained things to not do when the price is going down, but what is your list of advices when the price is going upper and upper? Just it would be interesting to hear how to know when it's the top and true moment to buy or profit will be lost.

It is very rare where people can find the bottom or high price but yes near about in last one year people know form where the price has being picking up and how much max fall has happened. But if people have some goals and if they achieve their target they should be selling it off.

Rather than not selling when the price is low, I feel it's more important and necessary not to panic as you said later because you may need to sell and then you may sell. But if the investor panics then even if he/she doesn't need to sell, he/she might sell off his holdings.
I would suggest Not to Panic, Diversify or trade to get some other coins which can provide greater return percentage compared to BTC, Be optimistic even if countries are temporarily banning or restricting usage/trade related to cryptocurrencies. And most important, follow your own strategy, don't follow others.

For the first point you can't catch accurately the bottom you don't know when exactly it will increase or decrease due to the market unpredictability and sudden fluctuations you re lucky if you spot the bottom then the price goes up after that, the Second one you can't also tell how long it will stay on that state if rise so it is your call to sell or not, the third point seems applicable for long-term holder and investors day traders must observe the charts daily.

Yeah, there is really none and the most important thing like you said is to always make informed decisions which most times to even be trading the market either short term or long term, requires one to at least have some sort of strategy to be able to know how to make certain market decisions which all amounts to where to buy, where to sell and how you should be managing the risks that comes with it.

Not everyone have the information to know when to sell most of the time, and that can make it hard for them to make important decisions even when market is just doing some short term correction.

In my opinion the three things not to do when the price are down are 1. Never sell your coins because due to low price you will lose your money. 2. Don’t be panic and hold your coins till the price rise again. 3. Build your trust and be optimistic about the future of bitcoin or any other currency in which you have invested. Strongly follow these three things.

I disagree with the third point, any good trader shoud stay updated and must keep an eye on charts, this way a good trader will not miss any opportunity especialy in cryptocurrencies market which is known by high volatility, fast and violent price changes.

If you plan to invest a big amount of money you should be ready for all scenarios and keep in mind: "Never Invest What you Can't Afford To Lose"

Dont judge the bottom of the price because we cannot predict the market. At the same time we dont the  bottom price. Another thing is whenever the price is low means we cannot sell the  bitcoin. Always use the strategy by low sell high if we know this we can easily earn more income through bitcoin. Till that we have to wait with patience and hold the coin.

Yes that is true, many Bitcoinist knew this kind of strategy. When the price is dropping again they need to do this kind of thing so they did not lose their money. When the price is low we need to hold and buy that is now the mindset of many people here even me. Admit it. I do it also.Do not stress yourself to overthink the price just let it be and trust the processes.

But someone's smart way of thinking is very different, you cannot force others to follow what you have mentioned. The mindset of graph price are different between me and you and others in this forum. As what you said, never sell when prices declined.

But for me, I will see the cause of the price reduction be it technically and fundamentally. I will continue to hold when the price decreases if the cause of the declining price won't have a large effect on the market, in general the coin price will return to its original price. However, if the cause of the price will give a big impact on the decline price then I would sell my coin and certaintly will return if the price is at the bottom.

Unfortunately, that is what a lot of people always end up doing in most of their investment years and trading years all because they are so ignorant of the space and they just do things blindly. Development will definitely keep coming as well as mass adoption, the only issue is that people tend to look at the negative side to every negativity rather than trying to find ways they can take that negativity and turn it into a positive situation for themselves, which in this case is what we have always clamored on when it comes to buying the dips.

There is one thing I do, no need for three . I just keep waiting until it goes back up to a level where I can feel comfortable.

As long as you wait enough than there is no reason why you should be worried about price dropping. Market could be bear, everything could be horribly going to low, just focus on spending money you can afford to lose and you won't worry when the price is going down. You need to focus on not dropping but just the patients of the fact.

No three need or something just one thing and that is patients. If you wait enough than the price eventually goes back up and you profit from it. Sometimes quickly, sometimes takes time.

All of the three "Don'ts" are very important but in other of importance and urgency, this is the most valuable and should be on the top of the list. The moment you begin to watch the charts or you have your bitcoin in wallets like blockchain.com that updates the value of your bitcoin in relation to the dollar on a real time basis, seeing the value dropping gradually could trigger some not well thought out decisions and the other two "donts" would be able to stop it. I have been there before and when you are about to make such decision, you justify it by rationalising but with complete closing out from checking, you are sure of making much more sound decision the next time.

what you are calling "peoples" is just day traders not everyone. it is those who are trading in short term like daily to make profit from trading not from investment. the investors are not active every day by looking at the price every second. they buy at an appropriate price and after doing proper analysis on the real potentials then they invest what they can afford to lose and go away trusting in their analysis and check things periodically with a bigger interval.

Yeah it would be very difficult to practice that especially if you have a lot of investments. This is why it's important to be fully aware of what you're getting yourself into. If you accept the risks right before you made your first investment, falling prices shouldn't affect you that much

The human being have 6 sense so all the investors are waiting for the future hype. I think no one is turn off the computer and go away from Bitcoin. Because all the investors are buying this dip then only it will make good profit in future so most of the peoples are active this period. Some peoples are holding for long term so they never take it mind so who expect more in this investment they only monitor the market.

1. You should do some consideration before buying, whether the price will continue to fall or not? it is difficult to determine the lowest point, but you don't have to buy at that point.
2. If you sell when prices rise there are two things that will happen, prices will continue to rise or prices will suddenly fall. it's unlikely the price will stabilize after the price rises. if you want to be a trader, you have to get rid of greed.
3. I like to see graphs, especially if prices are rising. even I see it all the time.
Cryptocurrency will make you trapped in difficult choices, but you have to make a decision wisely 

I just want to chime in to say that this isn't necessarily bad. Selling everytime the price rises could end up losing you money in the long run, especially in the crypto market where growth is explosive. You could easily end up selling below or near the next bottom.

I'd personally say there are really no standard practices when the price dips, other than to make informed decisions unclouded by FUD. There's no real way to avoid losses anyway.

This is really the thing that must be done. Do not sell during the market on red state, or when it is down, probably hodl and wait for the time when the market turns green or rise again the value. Then it is the perfect time to earn money. Being smart is indeed needed for the bitcoin 's market.

Thanks for sharing this idea! very informative! Always remember that bitcoin and market are not always going up it is like a wave it goes up and it goes down!

Panick sell is the worst thing you can do when price is down.

I think no one can know what is expected for Bitcoin or any other cryptocurrency. Unlike what a lot of people think December was the best thing ever happened to Bitcoin, since then so many developments started for a better technology and for easier UX; with the purposes of mass adoption.
It's really all about DEVELOPMENT, more things need to come and become better and if everything will go right then Bitcoin can reach 1m easily.
Exactly as it is? Bitcoin will die to $0. But the good thing is that it's always getting improved by protocols and third-party developments.

The crypto market is a volatile market.  If you don’t have the stomach to ride out the downswings, maybe you need to put your money in a CD or something similar.  One should buy a little bit bitcoin when it’s relatively low now compared to late last year, then hold for a few years, I guarantee you will not regret your decision.  Cheers!

You did not mention the most important thing to not do.

Do not base your decisions on the past.

Just thinking that the price is "down" is a mistake because you are comparing the current price to the past.

The past is gone. It is no longer relevant. It has no bearing on the future. Forget about how things used to be. Only look on how things might be.

A nice write up emotionally I do attached myself to watching the price (blackfolio)  every now and then I have read and understand  some useful comments on how to overcome it, I also agreed on trying not to catch the bottom when the price is falling of course Cryptos are very volatile nobody can predict where exactly the bearish run will subside to avoid draw down especially when buying low.

In short, don't be so emotional when the price goes down, this will drive you to do crazy things that you'll ever regret after deciding.

Cause you panic.
Making you FOMO.
Making you think that its the end for the whole crypto market and there's no more hope.

If the price of bitcoin is falling, stop following the prices to avoid being affected psychologically. Turn your monitor off and just go outside and do something else.

the nice info that you give me will share, but if we focus too much like that it is not good too, the point is when the price is more turrun it is your time to buy and when you are not able to buy i think you need to hold and don't panic

It is a good thing that we still has something to do when it comes to the lowing of bitcoin price in the market. I believe that many of us may possibly be panicking at that time that is why it is good to take notes of things you can do while its price is at that stage.

Some of these tips are good, but actually as I am a long term investor, I just keep my bitcoin in my wallet waiting for the bullish movement again

Nice to read it and I would like to share my idea about it. The most important is that not being a panic trader, commonly trader are becoming panic when see the market is falling down. Ones should they always be realized is that bitcoin is not same as gold and silver, it is volatile. Therefore, we suppose not become panic seeing the market down.

In the btc market, I believe that volatility and market fluctuations are just part of the btc market condition which is just normal. Experienced people in the btc market already knew the drill in times of bear market where most usually hold their Btc's and buy more at a lesser price. Once the market condition is favorable, take the profit and leave the capital behind.

if I speak three things I think that is too much, I just give advice on things that don't need to be done when bitcoin prices go down, don't panic sell and sell bitcoin at low prices so stay stay on bitcoin and arrive at the highest price.

In my opinion, doing things elaborately will sure make you tend to make wrong decision so I guess taking this with Cryptocurrency is a wrong move, Because doing this in a detailed manner you cannot actually predict the situation on what may happen with the price of bitcoin because it is really unpredictable saying that you are about to make a sell on a said amount when the price makes an increase you can not detail out what price you want to sell your bitcoin and you wrongly predicted it then the price plummets mids your prefer price then you will have a decision that is wasted, I really think you should have many plans for what may happen with the price giving cryptocurrency a one outline on what to happen will only end up in a poor conclusion.

The right time to sell is subjective.
It depends on what factors or combination of factors caused the rise. If it is an organic growth. Then you can hold up for a higher price. It's best to have a target profit when investing.
And also consider the current volume.

I agree with the first two, but respectfully disagree with the third. Staring at charts all day is surely not so good for your eyes or your brain, however, it might teach you patterns of the crypto market movements and trading strategies that you can apply according to the market situation. This is the essence of Technical Analysis—trying to predict the market's next movement by looking at and studying past data. Learning this will help you avoid the first two as well.

Is not it a theme for a Trading brunch? Because we can say the same according to any coin not only Bitcoin)

I could add to your list don't trade against the global trend if you are not a good trader During autumn rally i've tryed many times to rebuy btc lower, but in the end i had to buy it higher not to miss the global move) i realised that i can trade both sides only when it is flat trend)

I would recommend switching to a completely different kind of activity, so as not to make mistakes while the market is not stable.

Nice writing and I want to add this idea too: Don't chase or pursue the market, depending on the way you regard the term.

The market is ready to defit a trader multiple times like no man's business. That is, the pain of losing a trade might cause a trader to always want to get in and recover his or her money whether is a ready market or not but this is a wrong trading decision. Be patient to spot a good entry point maybe the next day of trade.

It's normal for bitcoin to see the price falling and I think you should always do the basic thing to get the advantage of "buy low and sell high" because if you don't know the basic way you will always end up losing your investment by trading so every time the price drops you must buy bitcoin because you don't know if what is the bottom price so buying bitcoin after the drop is the best opportunity to buy cheap price of bitcoin and sell it when the price reaches 10% or more.

In the emotional market, price volatility is driven by emotions. To emerge on a market driven by emotion, you have to eliminate emotion from your trading.
Here I will talk about what you should do and should not do in this market. It is very difficult to keep up with Bitcoin prices and you will wonder whether Bitcoin prices will return to this level again. I can not predict this, but most people are confident that prices will recover.
Do not try to catch the bottom correctly
If you are fortunate enough to have some of your capital when the market declines, this may be a good time to build your portfolio. I like the market's adjustment and almost no participation when the market is falling sharply - but bottom-fishing when the market fell has made me several times heavy losses.
Not sold when prices are rising
All of us have bottomed out in the downtrend just to wait until the price goes up.
It seems that every time I get entangled in FOMO and proceed to sell immediately the price of that kind of coin increased.
Do not stare at the chart all day
Whether you like it or not, you can not control the market up or down at your own discretion.
Trust me, initially, I also spent countless hours tracking the chart. Now, I find myself wasting that time. Sure, I spent a lot of time researching and applying what I learned for my trading, but I also spent a lot of time staring at the computer screen for hours on end. Track charts.
I learned that most of my mistakes were made in such moments. Taking hours to look at a continuous chart will make you fatigued and may make emotional decisions.
Maybe this is my share of nothing special with the experienced trader but I think it may be very useful for newbie.