How to Survive a Bitcoin Bloodbath: What to Do When the Market is Crashing
Many of us woke up on Monday to see a bloodbath.
Bitcoin, as well as most other crypto currencies, dropped by over 15% early this week, which many believe is due to the SEC’s denial of another proposed cryptocurrency ETF.
When every chart is red and you can see your crypto holdings falling like a stone, it can lead you to wonder.
“Is now the time to get out?”
“What do they know that I don’t?”
“What will happen if I don’t pull the trigger and exit now? I could lose all of my investment!”
Hardened traders are used to this sinking feeling, but most of us with less experience will feel an emotional response to a bear market and feel a strong drive to exit.
This feeling is totally normal.
Humans are very loss averse. This phenomenon is well-studied, even back to the 1980s. Most people irrationally would prefer not to lose $100 than to gain $100.
Many crypto traders believe they’ve solved this problem with a little brain hack. Using the popular HODL strategy; essentially just buying and holding a security; they believe that they can avoid the pain of seeing the fiat value of their crypto holdings suddenly wiped out.
But what you may not know is that there are more creative positions that can not only make more money over a HODL strategy, but can make you money even when the market is trending down!
In fact, the origin of HODL comes from a trader who admitted he did not know what he was doing, and rather than worry too much about it, decided that the simplest strategy was the best.
Very few people know that this trader admitted that HODLING wasn’t the best strategy, it was just a simple investing shortcut to mentally deal with the wild swings in crypto valuations and keep a straight head.
One of the main reasons people HODL is for similar reasons to dollar-cost averaging.
Because of the volatile nature of the market (and particularly cryptocurrencies) new traders often like to make a mechanical, regular investment in an asset they believe has future value, rather than worry and stress too much about daily swings in the price of the asset.
But because of the mechanical nature of dollar-cost averaging, it means that you will miss some great opportunities that are only possible to seize by timing the market better.
In fact, many new traders don’t know that you can profit when the value of a token goes up and when it goes down.
But how do you know what to trade, and when?
Rather than just listen to the whales in telegram groups, what if you could actually copy exactly what skilled traders are doing, and follow their trades in real-time?
That is exactly the problem that the Carboneum network solves.
Carboneum makes investing in volatile markets easier by leveraging the wisdom of other traders. And it’s available to you too. With a simple system to learn and profit from the investment strategies of accomplished traders, you too can learn to profitably trade cryptocurrencies.
Carboneum lets you copy the best strategies by proven profitable traders. Click here to see how and learn more about how to survive and thrive as a crypto investor.