In the case of a large percentage drop

[Walrus1]

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

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[Iranus]

To pick up the philosophy that a significant amount of people around here claim to have, have a look at this thread.  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.

[singlecrytpo]

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.

[soham]

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.

[Sadlife]

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.

[uszaty43]

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.

that would be hard for US citizens to hold onto them.

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)

[fanbeila]

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.

[ahmedjamal1998]

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.

[WhichIsGood]

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.

[Walrus1]

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.

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

[FrueGreads]

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

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.

[Walrus1]

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

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.

[puzif3r]

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.

[zentdex]

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

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.

[bribed]

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.

[8270thNinja]

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.

[CodyAlfaridzi]

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

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.

[rube08]

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.

[dissgo]

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.

[dotcomwriter]

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.