The encrypted industry is accelerating crash, what should I do?

key point

Encrypted currency market plummeted, leading encrypted currency has fallen half of the value since November. It is important to panic because these types have been previously occurred. Focus on the long-term potential and causes you initially invest in encrypted currency.

For the encrypted monetary industry, this year is not a good start. Bitcoin (BTC) is the leading encrypted currency of the market value. Since its in November, its prices have fallen more than 50%. According to COINMARKETCAP data, ETH (ETH) has also fallen by more than 50%. When writing this article, the entire encrypted currency market has dropped from nearly 3 trillion US dollars to $ 1.6 trillion.

If you are an encrypted currency investor, then these rush prices may be a brain, especially when they are accompanied by pessimistic headlines. But even if this is the beginning of a long-term low price, this does not mean the end of the encrypted currency. This is four things you should do.

Don’t panic

Pasteliness is selling – or because you think encrypting currency “selling” while panic purchase – the wishes can be understood. No one wants to see that their investment value is halved, so it is easy to reduce losses and look for other opportunities. But if you do this, you may lock what you lose. The next week’s market may rise again. If you sell your encrypted currency, you will not benefit. Indeed, this is a relatively new and unspected market, but so far, the market will always be rushing.

Now, for panic purchase, you may think is a good time to buy now. But don’t rush to make this decision. Take a look at what happened in the market and make sure that each encrypted currency is due diligence. Sometimes, raising bargaining will lead to normal research on their specific coins or Currency. Most importantly, only investment you can withstand. The price may fall further, if the price falls, you don’t want people to do.

2. Looking at the overall situation

There are many comments about why encrypted currency crashes. Most observers will be attributed to a tough Fed to withdraw economic stimulus measures, regulatory and uncertainty and concerns about the upgrading of Ukraine and Russia.

The problem is that these factors have much impact on your long-term views of encrypted currency investment? The Fed’s initiative means that a broader economic environment may evade risks in the short term, we may see a huge leap in 2021. But if your initial investment argument is established, then you should also stick to it.

Supervision is also a big problem, especially in the short term. Governments in the world may impose more rigorous regulations on the operation mode of encrypted currencies, and some countries may follow China and completely ban encrypted currency. In the long run, this can establish investors’ confidence and drive some adverse actors out of this field. But it may also lead to additional short-term pain.

3. Knowing fluctuations are normal

Whether it is a stock market or an encrypted currency market, there will always be downturn; the encrypted currency is especially because it is an unstable and high risk investment. These large declines are an incredible income of certain encrypted currencies.

But high-risk is why it is important to make sure it represents a small part of your portfolio, and you only invest you to withdraw money. Since the launch, the value of Bitcoin has been halved many times – but since the launch, its value has risen almost every year. Check the price chart in the Bitcoin and Encryption Industry to help understand the latest decline.

4. Develop a plan

Since you have fully evaluated what happened in the market, you can better decide what to do next. Remember that the investment strategy to buy and hold is usually the best way to build long-term wealth.

However, it may be that you have lost confidence in encryption and think this is not a good long bet. Or, perhaps this time the latest price will let you sleep all night and let you realize that the volatile encryption investment is not suitable for you. If this is the case, you may need to consider the best way to exit the position. But this is not a light decision – usually do not sell at the lowest level of the price in six months. On the contrary, consider waiting for them to recover and sell. You may want to discuss the best way to perform this operation with a financial advisor.

On the other hand, you may think that you still have a long-term confidence in encrypted currencies and hope that Bitcoin will eventually reach $ 1 million (just as the Cathie Wood of Ark Invest is recently suggested). You may even decide to put more money into the encrypted currency. The key is that you have to make a wise decision, don’t rush to do anything.