Don’t Do These 5 In The Bitcoin, SHIB, And Altcoin Bear Market!

The bear market spanning Bitcoin, SHIB, and altcoins is brutal for new traders who don’t have enough experience. Volatility is typically much more severe compared to traditional stock markets. Below is analyst George Georgiev’s list of some of the most common mistakes investors make during a bear market and advice on how to avoid them.

Don’t panic sell

Panic is universally bad. This is because when we panic, we experience both fear and anxiety intensely. This feeling often comes in response to an existing danger. When this happens, we are more likely to lose control and make reactionary decisions that lack common sense and logic. In the field of investing, panic selling refers to the widespread act of selling out of fear, rumor, or overreaction rather than logical and carefully planned analysis.

Investing in a cryptocurrency is an action that should be based on solid, objective values ​​rather than emotions. For example, Bitcoin is largely considered digital gold. Many people invest in it to maintain the purchasing power of their funds, especially in times of high inflation when fiat currencies tend to devalue at a faster rate. If this is the main reason behind investing, a long time frame is probably preferable. At the same time, the only reason to sell is because something fundamentally changed in sentiment and Bitcoin stopped fulfilling its role.

However, what we see in practice is that a lot of people start selling their BTC when the price starts to drop. They forget that BTC is considered by many to be primarily a risky asset. Therefore, in times of economic turmoil, it is entirely possible for investors to liquidate BTC before liquidating other assets they consider to be safer. This causes the price to fall sometimes more aggressively.

Do not get emotionally attached to Bitcoin and cryptocurrencies

While you should avoid panic selling, that doesn’t mean you should never sell. Putting your ego aside is just as important as realizing you’ve made a bad investment. Many people “marry their investments”. So when the narrative behind it fails, they make an emotional connection to the investment and the reason and logic above.

Emotional investing is something that happens to many people during the 2017-2018 years when the ICO boom was at its peak. Many investors entered early, making serious returns. However, it failed to achieve these while pursuing higher return on investment. Later, when cryptocurrencies began to crash, they did not sell because they were convinced of their recovery. The truth is that many altcoins that have lost more than 90% of their value since ATH are unlikely to revisit these levels. Don’t be afraid to cut your losses and move on.

Do not trade continuously

It also has a lot to do with the mismanagement of emotions. Overbought is usually the result of several things. What all of the above have in common is that they encourage emotion-based decision making. Remember, the market doesn’t care about your feelings. Graphs are nothing but a visual representation of information. However, in any case, investing is a process based solely on objectivity. It is a process in which there is no room for emotions to develop. You also pay additional transaction fees when entering and exiting transactions. If you don’t manage this properly, they can clump up pretty quickly.

Don’t try to bottom out in bitcoin price

Trying to push the time to the bottom is another common mistake newcomers tend to make. General opinion on this subject; “BTC still has room to fall, then I will buy.” Later, one of two things happens.

• Bitcoin drops, but they (once again) never buy, thinking it has more room to fall.
• Bitcoin never drops and they don’t buy thinking that “one last leg” will come eventually.

But consider this. Imagine Bitcoin trading at $10,000 and another 20% crash to $8,000. You don’t buy and then Bitcoin enters a parabolic bull run. It then reaches $100,000. Now ask yourself, was that 20% worth it?

During the COVID crash in March 2020, when BTC fell below $4,000, many thought the worst was yet to come as the world was on the brink of economic disaster in the face of global lockdowns and an impending pandemic. But that never happened, instead BTC went into a widespread bull run where it surpassed $69k a year later.

The thing is, these are all just educated and informed guesses. Therefore, if you are not a professional trader, one of the best strategies you can use is Dollar Cost Average (DCA). The idea is that you take the money you want to invest and break it up into smaller groups that you regularly invest in. For example, once every two weeks or once a month. This will get an average price across all entries and minimize risk.

Take care of your mental health

From all of the above, one thing should become clear; Your mental health is paramount. No money is worth sacrificing your well-being. Now that cryptocurrencies are somehow making their way into the mainstream investment landscape, it’s important to bring this up as more and more people start trading and investing in crypto. Take care of your mental health and do not neglect it. One of the most stress-free things you can do is invest in the long-term if you have faith that the cryptocurrency is here to stay. If you think Bitcoin is digital gold and therefore will replace traditional gold, why sweat now for a 10% increase or decrease in its price?

If you think Ethereum will become a worldwide platform used by hundreds of thousands of developers and users around the world, does it matter whether you bought it for $1000 or $1100?

In bear markets, prices tend to go to extremes and it’s common for people to see paper earnings decline. If that’s the case, remember that there is life outside of crypto too. These are some of the most common mistakes people tend to make during a bear market. None of the above is financial advice, just the thoughts of analyst George Georgiev. cryptocoin.com The purpose of this content, which we transfer as, is only to entertain and educate.

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