Litecoin is one of the first open-source altcoins based on the original Bitcoin code. It was initially a strong competitor to the first cryptocurrency. However, as the cryptocurrency market expanded, Litecoin’s popularity gradually declined.
Store, change or get rid of. What to do when the crypto falls?
The situation on the cryptocurrency market has changed dramatically and, alas, not for the better. Over the past week, digital money has not stopped falling in price, and panic has begun among the owners of the crypto. Bitcoin was also among the actively falling coins. On the night of March 12-13, 2020, it experienced a major collapse in value. Its rate fell below $5,000. Exactly a week before these events, the first cryptocurrency was worth $7934, and on March 16 it could be bought for $4888. At the same time, on Friday the 13th, 2020, Bitcoin reached its fundamental minimum, breaking all records of such a dynamic and rapid fall throughout the day, in the entire history of its existence. What is causing the fall of bitcoin? How to make money on the fall of the cryptocurrency rate? And how to behave in such a situation – to sell, exchange for altcoins or keep the coin no matter what?
Let's remember November 2018, then there was a similar collapse of cryptocurrencies, which left a good imprint in the memory of all participants in the crypto industry. The bitcoin came out of the flat at the level of $6400 and fell in price to the current $3850 in three waves of decline. Almost 40% drawdown in just three weeks. Mining in the shortest possible time became unprofitable both for individuals and for some firms. Attempts of miners to sell off machinery and equipment were unsuccessful, and the number of those interested in buying it became less and less. After that, many decided to leave this industry.
It was during this fall of the cryptocurrency that the president of the Russian Association of the Cryptoindustry and Blockchain, Yuri Pripachkin, urged not to panic, and in every possible way try to maintain the current positions, hold on and not rush to sell the cryptocurrency.
He also said the following: – "There is no endless fall, just as there is no, by the way, and endless growth." And he was right! Already literally in the summer of 2019, the price of one bitcoin was above $11,000.
Let's, again, take the well-known bitcoin as an example, when it falls, and its price flies down. You see how the crypt loses its value. Agree, it is difficult at such a moment to remain calm and simply, without doing anything, coolly observe. A similar situation occurs with all other cryptocurrencies, since all bitcoin forks inherit the bear market trend. On the one hand, you are beginning to be drawn to sell assets, and on the other hand, the thought of whether bitcoin will return to its previous level does not leave you. Unfortunately, no one owns some magical device that can predict this with accuracy. But with great confidence we can state that it will rise again.
Alas, we cannot give you instructions on how to behave properly when the crypto exchange rate falls. And no one can reliably do this, do not listen to pseudo-experts. However, we can give recommendations on what exactly should be avoided. So:
1. It is foolish to try to wait for the very bottom of the fall in the course.
Looking at the growth chart of the crypto, most likely at this moment you are wondering when will it start to grow? This is an attempt to try to "feel the bottom". An attempt to buy currency at the lowest price and, as a result, earn more. Remember, your expectation may not pay off. Predicting the "bottom" is very difficult, and to be precise, it is almost impossible. If it were that easy, then market participants who have special influence could help lower the market price of bitcoin, and sell large amounts of coins, and then buy them back when the rate decreases. This way of earning is better known as a bearish trend. There are also known schemes for earning on a bullish trend, which is exactly proportional to the opposite of a bearish trend.
2. It is a bad idea to change your coins to those that are now actively growing.
It is not uncommon to try to buy a cryptocurrency in anticipation of its future growth, but at the time of the collapse of the digital asset rate, in an attempt to quickly replace one cryptocurrency with another, which began to actively gain growth. However, the trends change dramatically in the opposite direction and it turns out that the price of the previously sold cryptocurrency has rocketed to the moon. The annoyance of such an untimely and thoughtless act will not give you peace for a long time.
3. Do not monitor charts for days.
Sometimes, the best solution is to simply close the chart page and stop monitoring the bitcoin price. You should always trust your strategy, and also remember that if you are not playing the market with a strategy, you are just gambling with guessing. There is one general rule of action in the cryptocurrency market, and it remains unchanged – "buy cheaper and sell more". Buying a cryptocurrency is a long-term investment, it is a serious decision, and you should not allow the formation of your strategy to be determined only by the fall in the price of cryptocurrencies or banal FOMO.
