Bitcoin Forum

Hey, what action would you take if a large percentage drop occurs on btc. Would you ride it out with faith it would come back, or cut your loses at a certain point. In the past I've made the mistake of riding stocks down. I'm not comparing btc to stocks just using that as an example of past mistakes. At this point I might be tempted to ride it seeing how Bitcoin bounces back and has proven to be resilient. I don't want to be negative but it's good to look at different sides of investments

To pick up the philosophy that a significant amount of people around here claim to have, have a look at this thread (https://bitcointalk.org/index.php?topic=375643.0).  Basically, given that it's a risky asset, trading frequently is often considered to be worse than simply buying and holding.

Most people around here are not experienced traders, and it's quite important to be self-aware of that by avoiding day trading and other short-term trading.

However, not all of them actually do that, and end up panic selling after investing more than they could afford to lose or being afraid for their money.

Personally, I think I'm willing to hodl as well, seeing as I haven't bought any at these higher prices.  But I can't guarantee how I'll react when it actually happens.

I think that's the perfect time to buy more and HODL. But at the same time it also depends on the reason it drops. Now let's say the SEC cracks down and it drops, that would be hard for US citizens to hold onto them.

Well, your decision entirely depends on your outlook towards bitcoin and your risk taking capability. If I see a 30% drop in bitcoin price, I would happily buy more bitcoins to take the benefit of dollar cost averaging method. If I buy at that price, it will average out the buying price to a lower level and the profitability will increase. It will also keep my portfolio risk at a very low level. In one sentence, a large percentage drop will open a new window of opportunity to buy more bitcoins at a lower price point.

Investing in a volatile currency is really risky but as far as ive seen in bitcoin it would not happen that it will drop so great cause ive seen it many times how it recover from huge loses from newbie investors, forks and ICO's ban. I can safely say that bitcoin is stable and good for long term investment just be optimistic good things will happen and btc is not the same with stock resources cause it is a digital gold that can leap to new all time highs and stay's there.

If the price drops below $6,000,i would put most of my entire life savings in to bitcoin, you all know that everytime that it drops there is always a new retracement, and it always tend to go up, doesnt matter what.

The whole population from the US have always had a lot of trouble in order to hold bitcoins, there is nothing new with that.


In fact, the IRS is very desperated because they want to raise as much money as they can just by taking people's taxes from their bitcoins.
 
That is why they are just trying to catch all those who have larger amounts of bitcoin on their wallets (only if they are citizens from the us of course)

Bitcoin investment is totally different from investment in stocks.In stock market,once a company's shre price falls,you would have to even wait for years to see the share price increasing again.But here,the scenario is entirely different.One day,bitcoin price could fall $100 0r even $500 and the very next day,it could rise up to $1000.That's the volatile nature of bitcoin which has made thousands of investors crazy about investing in it.

If you analyze the previous price history of bitcoin,we could clearly see that bitcoin price has fallen heavily many time and after each time it falls,it immediately reaches a ATH price and gets settled there.So,just hold bitcoins in such price drops without getting panic would be the wisest decision i think so.

Since you used to trade on stocks, it is a must to point out a few things. First of all, investing in bitcoins and crypto currencies in general is totally different and has its own conditions and is probably nothing like what you used to do.

In stocks, price changes are nothing compared to what happens in crypto. If a broker starts losing and goes down by a large amount,  it'll probably stay like that or even take years and years till it recovers back up. Here it's totally different. If a coin goes down, that doesn't mean it's the end. If it has some potential and actually has a purpose it will surely get back up. It might take a few days to few months.

I guess you never saw stocks go up and down by 10% , have you ? Well, here it happens. That's why before you jump in and invest your money you need to understand what you're dealing with. Basically let me tell you a simple small advice according to all my previous experiences. NEVER SELL IN CRYPTO ON A LOSS. Whatever happens, don't do it. One mistake that I fell in a few times is buying btc while it's rising and then selling when it starts going down as I'm afraid of losing my money. Only to find that a month later the price is back up and even higher.

And I'm not just talking about the last month which was totally crazy. I'm talking about stuff from 2015 when I had a few bitcoins at $270 for a coin and sold them for about $250 each. Now talk about REGRETS. That's what I learnt. Since that time, whenever it goes down I buy. It's inevitable that it'll rise.

The wisest thing to do I'd say is buy whatever you want and totally forget about them for at least one year. Then check how much they are. I know it's hard but caring less about the price makes you less anxious and drives the idea of selling at a loss away.

I think i would just ride it out because I don't really know trading myself. Plus, when bitcoin experiences value dips, we can't see its price dip stay dip for too long because it always recovers and recovers fast at that. Well for you, since you have experience in trading stocks, It would be to your advantage especially if you are skilled at it.

yes I've seen stock drop 10% and much more. I was in edging during the .com bubble. I thought I made clear I wasn't comparing to btc to stock. A company has guidance, profit, announcements P/E etc to go by. Btc has none of that.

Honestly thus far I've been going by gut feelings. Btc is not stock. Never said it was, it is much more volatile. Sorry I get mad when I specifically said I wasn't comparing it to stock and then people accuse me of just that.

Btc is fun and a bit addicting. I had to stop myself as when I doubled my money in under 3 weeks I actually considered selling off my real estate investments and dropping it in Bitcoin. I've read people do just that. I stopped myself and will not do so. The point here is it's good to think of large percentage drops and either buy more ( I'd go that way) or cut your losses

I think it all depends on your strategy. If you want to be a long term holder, which is the best option in my opinion, at least for bitcoin, then you shouldn't really be paying to much attention to it's price, and just let it be.
Take the for example the "pioneers" of bitcoin, the first ones that bought bitcoin when a single BTC cost them just a few cents. I'm sure it wasn't easy for them to see bitcoin rise to $30, and then drop back to $5 or so. Even all the major dips we saw this year, are nothing compared to that one, and they kept their coins, and they still keep them now. I don't think they are keeping their coins because they want to be rich, since they already are. So I guess they keep their coins because they see how a great project this is, and how much potencial it has.

I think this is the perspective we all should have, and if we see BTC like that, then there is not point in trading it. If you are in it just for the profit, then you might want to trade them. This is very hard to do in my opinion, so even here holding looks like a better option to me, but if you are good at it, then you will get more profit from BTC if you trade them.

ya that's similar to my feelings it's just seven years of history isn't a long enough time to make a complete judgement on this yet. In the scheme of things it is a blink of an eye. Bitcoin started as a decentralized currency but it has grown into a buy and hold thing. Believe me I hope it goes up to a gazillion dollars like everyone but I want to be open minded about it and not just a cheering section.

it will still depend on you, are you wanting to cut your loss because you are day trading and time is important to you to place and bet trades or you are to hold your position until your investment gained profit then you sell and wait for adip and buy again.

I would trust and have faith in bitcoin thus rather than panicking and start selling I would prefer to start buying and taking the opportunity to have gain more coins. There are several drops in the past like the announcement of JP Morgan CEO and China band of bitcoin which dramatically bring the price down. At first, I'm in doubt to add and start thinking to sell, but I just hold in the first drop, while on the second slide I don't hesitate anymore and start to add.

I guess that depends on your goals. If you want to multiply your Bitcoin holdings anyway by trading, you might be better off cutting losses and buying back in cheaper. But if you are going long term anyway and didnt plan to trade you can just stay in and wait for BTC to recover. This might be hard the first times, but one gets used to it in this volatile market, Bitcoin (as any other crypto) sometimes suffers huge drops, but always comes back up, stronger than ever, at least thats what I witnessed on my crypto journey.

It will definitely recover but no one can say how many year it will take before it can recover, be smart on they hype of CME Bitcoin Futures, do not just ride on it but you should know how to take part on it to get your profit out of it without cutting out your bitcoins. I do believe that a large percentage drop will happen after CME Bitcoin Futures, no doubt on that, These Big Whales will not stop until they can take all of the money out of Bitcoin, Be Smart on this.

If I'm buying it on what I deem as a good entry and it turned out to drop further, I would just simply hold them and ride it out. Things are looking good and getting even better every day for Bitcoin. If there's a small correction, I'm sure it will easily bounce back later. A large drop is very unlikely for now, though. 2018 will be exciting for Bitcoin, more institutional money coming in, more adoption, and probably regulation and legalization coming. Let's see how the price will react to these things.

I would definately hold.  Bitcoin has seen many drops in its past and then recover greater than when it first dropped.  It seems to be a trend with bitcoin that it continues to be on a roller coaster, only the roller coaster keeps going up.  I think bitcoin will never end it's price rising, thus always hold onto bitcoin and good things can happen.

If you're not too late or you can be on break even point and sell at that time, you can wait for it drops until its resistant line, then you will be fine.
You can buy at low and it worth much, because I believe bitcoin always bounce back, even if you have bought at high.
Just buy again at low when you have much more money, then hold. This will be your chance.
I got extra profit when bitcoin-bitcoincash hardforked and with china banning news, then this time after hit new ATH, then dropped.
Bitcoin gotta be more and more popular time after time and trending worldwide, even people who don't know it before can notice.
So, it will be higher and higher. Just a matter of time.

In case if a large percentage drop, I will increase buying btc because I am aware it's velocity is parabolic as long as it has not stabilised or accepted globally, and its price will always increase.

hey ya I just purchased a pit when it hit 14k. Really don't know which way it's going but in the long term we should be good

When it comes to bitcoin, I don't really mind that much the price drop because I have seen its volatility and every time it drops, it goes back up and then reach all time high again. I don't have that much coins so maybe if I try to sell and then buy again when it dips which may not be that much, I may have a lose than gain seeing that price drops nowadays only last for just a few minutes or hours.

I prefer to just hodl my bitcoin and focus in having more bitcoin that's why I trade altcoin to have more bitcoin. We know that rapid movements in bitcoin affect the altcoins and there are times when bitcoin will have unpredictable movement that's why it is important that in every position I made, I already know when to exit to manage the risks.

Yes your intuition is correct it will rise again have faith and you'll see. Don't panic and hold it for as long as you can.

Very true, we have no idea how the ZOG institutional will effect the Bitcoin trend but I've learned from panicking selling in the past it is not the best reaction. Having said that I have taken profits each time and I'm at the point where I'm using house money so it's a bit easier to deal with.

Many people will stay keeping their bitcoin and hope the price will comeback. It si good to keep the price not dump so badly.
For me i will do the same and also buy back with my fiat money that i have kept in exchange.

Price drop is likely to happen considering it also climb so fast, but that do not mean that ot will keep falling, if we study the bitcoin price trend over the last 3years, when bitcoin price drops a much larger price rebound is bound to happen. I suggest keep the faith and wait.

If bitkoyn decently falls in price after a sharp rise before that, then this is his usual behavior. This situation should be used to purchase some more bitkoyna, because after a while it will again start to rise in price. Although bitkoyn remains a risky investment, but its potential for growth is far from being exhausted and while there is time to earn on the growth of its value.

Holding is the best option, especially for the long term in case bitcoin drops. It's because bitcoin can recovery quick after every drop.

If you’re looking at Bitcoins as investment, the first thing to do would be to buy and take advantage of the drop as long as it lasts.

I would suggest not to make decisions or buy too quickly. If there is a large percentage drop, are you going to catch a falling knife? Or would you risk and just keep buying down?

A large percentage drop happens every once in a while. However the trajectory is always upwards. So yes, i would just buy more coins, cross my fingers in hope that it will eventually come up.

I am more scared now with bitcoin which is sleeping than the last big drop. I mean after a big drop I usually buy more btc because I know it will go up again. but now I don’t know if the rally is over or it is preparing its attack to the new ath. anyway I’m calm in these bad situations because I invested only money I can afford to lose  :D

Well if in the case of a large percentage drop on bitcoin,i would still be holding it.Bitcoin has a limited supply,so it can't be mined forever,that's make  the price will surely rising in the future.I invest 30% of my money in bitcoin,so i'm not panicking when the price drop,because the price is volatile and i trust that bitcoin will go back up again.

I don't have a big amount of BTC, so even if a huge drop happen I will lose nothing, but if someone have a lot of money I think he should have a plan B, just in case.
The first solution is to convert BTC to another trusted coin or just cash it out and buy again when price start rising. better cut losses and sell at low price then losing all your money.

I have nothing to worry if bitcoin drops by large percentage, as I have not invested in btc from my pocket.
What I have today, I have earned it and then invested in altcoins. But if it happens any day, I will be very disappointed that's for sure.

On the other side, there is also a possibility that if bitcoin drops then alts will rise. This may also cover my losses which I may get in btc/usd.
If alts rises > my total satoshis rises > if my satoshis rises > my usd value rises.  ;)

Whatever happens just find and grab the opportunities.
Invest in alts when btc is on the moon, and buy btc when it drops.

I think, pseudo investment activities have their own risk. depending on each person's self how to react and need to learn more soalnya what will happen in the future we do not know  :-[

If the percentage of bitcoin increases even then some will definitely be happy. And also on the income statement, the expenses of your business are subtracted from the gross profit margin. Expenses include items like rent, insurance, utilities, and employee salaries and benefits. After the expenses are paid, you are left with a net income for your business.

In most cases, experienced traders and investors out there are hoping for Bitcoin to drop in value. This is for a short while. The reason is that they want Bitcoin to be cheaper at the moment so that they could purchase more Bitcoin at a lower price. So when Bitcoin crashed or drop tremendously in value, buy. Do not hesitate because Bitcoin will recover quickly.

You said it all. BTC is resilient, as seen from its history. I the value of BTC drops, I'll stick with BTC because I know I can know any loss. It's inky a matter of time before it will pick up again and I'll smile. I'll always be patient if BTC falls

Well at of some point bitcoin was around 0.05 dollars and now it price has increase to as high as $19000 before the end of last year and is at $14575 now, so if bitcoin has the potential to rise this high within a short period of time I think any amount of drop in it price I will still hold. Because I know bitcoin has the capacity to rise again. I will hold my bitcoin

You said it all. BTC is resilient, as seen from its history. If the value of BTC drops, I'll stick with BTC because I know I cant know any loss. It's only a matter of time before it will pick up again and I'll smile. I'll always be patient if BTC falls

Unlike stock exchange, Bitcoin is backed by its community. Meaning the price is driven by the community. As long as the community wants to buy Bitcoin, it's value will remain. Many are hoping for Bitcoin to drop, that is in contrast of stocks. When Bitcoin drops many will just buy some more at a cheaper price. This has been a norm in Bitcoin community so when Bitcoin drops, it will recover with guarantee.

But when the big cash happens investors will wait to buy at an even lower price because let's face it, after the big crash we are going to go into a period of maybe 1 or 2 years of decline in which time BTC will decline back to under $10,000. This is almost guaranteed because this amount of gains cannot be sustained for such long periods of time.

"My USD value rises". You must realize that by the time Bitcoin rises to $100,000 it will be used by everyone therefore you won't even need to cash out your BTC to fiat because you could buy anything with it. It is good that your Bitcoin is earned because it's better to work hard and earn your living then to get it easy where you won't or don't appreciate the money as much as when it's earned through hard work.

that is true, it will only depend on how our decision be made. maybe will look for the trend and hold it until in bounce back.
otherwise cut some bitcoin on your account just to make sure that you still have something if incase that rate is still down.
both decision are risky, it can be taken against us and missed some chances that we do when we do not trust bitcoin before.

IMO you should all settle a "stop loss" somewhere, a price you will sell if Bitcoin ever goes down to this price, I chose mine at $5,000 because I bought at $4,000 (so this is not actually a "stop loss" strictly speaking because I am not losing money in this scenario).
The stocks markets taught me that you should never hold something forever.
And try to diversify your assets, you can buy a few altcoins with potential in 2018.

Take a risk if you want to earn more but if you will are scared in loosing your capital and money the just sell your bitcoins. We don't know the future of bitcoin. We cannot actually predict that today it will goes up and soon it will goes down. We are just estimating what will happen and its up to us if we will hold or joy to the ride of others.
Mostly, some of beginners in trading are having a panick selling if there is a huge down to the price but the long-term investor are always happy with that scenario.

If it is a large percentage of the decline, it means that the bear market, if you want to watch may lose more.

When price dips, it is nothing but good timing meeting with opportunity. It is the best time to buy more, hodl and pray for mooning.

FOR me I think that I would cut some of my losses if a considerable of precentage drops drastically but and this is a big but. I would cut my lossess but still ensure that i have enough left to stay steady amidst this and if it goes uo U can resell tl invest again

Yes when the price dip it is the best time to buy because we know as the previous trend of price every dip there is a pump that can be reached a new all time high and enable every investors to gain a good profit.

I saw somewhere that if you don't have the nerve to stand the 50% fall, you don't deserve the 500% gain it will have. So always have faith and hold your nerve. We can see many occurrences where BTC falls to a significant low but recovers over time. But you should be smart and manage your risk. Don't be that guy who go all in with BTC with their whole mortgage money

For me, if your gaining profit already put some stop loss to prevent more losses and buy again if it drops hard.

There is no amount of drop that will make me to sell my bitcoin out of panic, panic selling has never helped any body some people say the want to sell to cut loses but not knowing that they are doing so out of inpatients. There was a time bitcoin was around 0.05$ and in a short period it price went as high as $19000 in 2017 so it bitcoin has the capacity to rise that way there is no problem with any amount of drop in price. And am ready to wait for it to rise again because bitcoin has the potential to rise at any point in time.

The drop of bitcoin value is like a good opportunity. I will likely buy many bitcoins and hold it until the time it came back to it's feet and inflate again. These are the gambles that I will surely take on

Bitcoin investment and stocks are two different things. Regarding to your question, if there is a large percentage drop into bitcoin I will buy many bitcoins. We can always see that as the price of bitcoin decreases, it will not take a very long time and it will increase again. Bitcoin's price drop attracts more investors to invest in bitcoin, making its price increase.

I think the people are wise and they are foresighted in the modern times first they think to the currency after that they invested in this currency So for my information the people will not drop the bitcoin and instead of all this they will choose bitcoin among the other crypto currencies for the businesses and profits. If the large percentage drops then the other people will come to join and buy bitcoin.

After such a bull run to 19000USD many people who invested, pulled out their profits. That selling has caused this correction. Besides that the CME is now offering futures contracts on BTC/USD and 02 Jan report shows short positions 2.5 times higher than long. Volume is not high but shows caution to the upside... We'll see what happens next. No panic.

Never invest what you cant miss and afford to loose id say.
Riding it out will not worry you that much.
Me myself am planning not to sell when the price goes down.
Id even buy some more eventually... so im even hoping on it a little

i do not, repeat do not, compare crypto to stocks why do people jump on that's all the time, I was making an analogy, I guess I should always write three times I'm not comparing crypto to stocks instead of once or twice as this always happens I guess people just read bits of things these days

yes that is true that bitcoin is now getting good support from the people. in fact now they have become aware about the importance of bitcoin and they are even having bad news in the market they are now letting bitcoin price down and that is really too good and in favour  of traders, in fact people are still too much confident about the price of bitcoin that it will continue increasing for a long long time. and hopefully in next few months the price of bitcoin will cross 30000$.

I will try to reduce my losses in the short term, if this fails, you can invest in ico for a while, as one option.

That is why its essential to put your stop-losses order on a major support. The only thing if we already losses a huge amount of Bitcoin is either to hold it or to cut your losses. In my opinion, holding it is the wisest choice because I'm sure Bitcoin will going to rise in the future.

In the case of a large percentage drop I won't sell my crypto. In fact I think this is the best time to buy more cryptos. When it goes up again you will earn more and will be able to recover your lost from the first investment.

I will prefer holding it until atleast it goes back up the the point I bought
Because I still believe there is long way ahead, a lot of room to grow
Unless you are a pro daytrader, I think holding is the best way to be profitting from bitcoin

In my own personal experience, it is better to hold because better opportunities would come and saving in the long-term woulld guarantee larger benefits than short-terms.

Before investing in bitcoin, you already know how risky this blockchain is. So when it go down you already prepared yourself for the worse, but this is what makes investment in bitcoin more exciting. The ups and downs make people think twice without even knowing what factor affects the fork on each cryptocurrency. I can advise you to just relax and keep your calm to avoid panic selling and lose your investment.

No,i wouldn't sell all my bitcoins or cryptos, or whatever i have on that moment, i do not want to sell anything because no one knows what is really going to happen to the entire market in a few months or even weeks from now. Maybe it crashes, and at the next day it makes a x2.

In the case of a larger percentage drop I just keep calm and control my emotions. I've learned the hard way that in cryptomarkets its all about patience and not rushing decisions. I suffered quite some losses when panic selling after the price went down and my portfolio value decreased. Well, I guess one learns from mistakes.

Just like before, the price of bitcoin has dropped significantly and at a long period of time but it rose after.

It would be up to you to determine whether it's time for you to cut your losses or continue to believe. When Bitcoin crashes or drops in value tremendously, it may be possible that the bubble has already popped. If the events that occurred would contribute to the popping of the bubble such as the tell-tale signs of panic sellers and profit gainers, then it may dictate that bitcoin has reached its end. However, if it seems like bitcoin still has a future then continue to hodl.