If your new to the land of Cryptocurrency then i’d just like to say ‘Welcome to our World’.
The past 24 hours has seen significant drops across the board, with a total of $150 Billion sucked out of the Cryptospace in just hours. Bitcoin has dropped 15%, Ethereum also received a 15% drop while Ripple’s XRP token dropped a whopping 23%, in fact just about every single cryptocurrency in the top 100, with the exception of Tether has dropped in the past 24 hours.
But this drop off was to be expected, we have seen some incredible gains across the entire space, with gains over 500% not being unusual. With gains such as these it would be more troublesome if corrections like this did not occur.
Did the Bubble just pop?
Well, in a sense, yes it did. Which is good news and unlike most other asset classes new bubbles are always close behind. The timeline of Cryptocurrency is a far more condensed path then all other asset classes, the bulls and bears in crypto are unlike anything else we have seen. Traditional trading assets see similar patterns to what we’ve seen in Bitcoin and the Crypto space over the past 6 months, however these patterns occur at far slower rates in the traditional asset classes. So its fair to say 6 months in Crypto is not dissimilar to 6 Years in other more institutionalised trading spaces.
Last year saw a couple pull backs not much different to what we are seeing now and historically after such corrections momentum soon begins to build for the next bull run.
The best advice is ‘Don’t Trade’, however if your finding your stress levels to high as you see your portfolio dollar worth collapse, then this probably isn’t the game for you. If everything you have is in Cryptocurrency and your fearful of what you’ll do if you loose everything then again, this isn’t the game for you and it maybe wise to get out now.
For those with stronger hands, now is probably a good time to buy into some good investments, primarily Bitcoin but you maybe also interested in some of the other bargains on sale right now. They may drop some more, however if it’s a good project and it’s in the top 20 on Coinmarketcap.com it will likely regain it’s value from 48 hours ago.
Other than that, switch of your trading displays and chill for a few days, enjoy the peace and consider socialising – its very easy to get absorbed in graphs and market capitals, in fact it can be more of an obsession. Now is the time to try and detach a little. Spend some time working on projects you may have, learn a new skill, stroke your cat or go on holiday.