If you got emotional about the dip today, you need to manage risk better

[tinopener]

Dips and rallies is part of investing, it happens in every asset class except t-bills. If you got stressed out, you probably need to diversify your portfolio to appropriate allocations for your risk tolerance. A 100% cryptocurrency position is bad strategy, or no strategy at all.

Well, the idea of bonds is that they shoot up when stocks go down - if only for a little while, so you need to be monitoring constantly during stock market dips in order to take bond profit. Have a look at the March crash.

But yes, absolutely, A 100% cryptocurrency position is bad strategy.

Anybody with 100% in crypto needs to immediately start looking at other asset classes such as shares, bonds, property, infrastructure and precious metals.

If you have a very high appetite for risk, also look at venture capital.

Also, bear in mind that this year you will probably make as much money speculating on companies involved with bitcoin - I'm kicking myself for missing the 1200% spike in the Bitcoin miner Argo Blockchain over the last 3 months.

[gurunanakji777]

Well said many newbies investors bit depressed by the dip but they should not be depressed as the correction phase of the market is going on. Let's see where the market stops now today market recovers a little bit but on the basis of my 4-year experience I learned many bitter lessons from this market & I always try to avoid the same mistake again and again. To manage the risk in a better way always diversify your investments so that dip does not afraid you.

[Kakmakr]

The thing is... most new investors and specially the larger institutional investors are not used to Crypto currency volatility... so they scare easily.   

A lot of these people are also speculators that entered the market, because of the latest price spike and they only care about profits. So when we have a large dump like this...these people are the first to run and they cause a stampede when the sheep follow them.

Most of the early investors are used to this, so they are not phased at all.... we sit back and enjoy the show. 

[sunsilk]

Dips and rallies is part of investing, it happens in every asset class except t-bills. If you got stressed out, you probably need to diversify your portfolio to appropriate allocations for your risk tolerance. A 100% cryptocurrency position is bad strategy, or no strategy at all.

Not everything will rise forever and that's why a dip has to happen which we've seen today. But after this dip, we'll see the next recovery. That's the usual thing that happens for bitcoin. And look with those mainstream media publishing that an expert says(U.K FCA) that crypto investors will lose a lot of money.

Crypto investors ‘should be prepared to lose all their money,’ top UK regulator warns

Isn't it timely that these articles comes out when the dip comes? 

The strategy of listening to the bad news makes other bitcoin holders initiate panic selling.

They were waiting just that I am afraid. I have read it right before you posted it and I had a similar view: I saw this game back in 2013/4 and again in 2017/8. Nothing new, journalists need to get readers and clickbait on a daily basis.

Yes, they usually get more engagement and traffic by doing some that kind of sense for their topics. A clickbait and at the same time, they're making their readers go into the panic. And as a result of it, many again have lost who have bought at the top and sold when it dropped.

Just as today, we're back to $36k real quick.

I have bought at both 25k, 30k, 35k and 40k. Without the slightest regrets. I have done this from an investors pow, not a traders pow.

Good for you if you've done that. There are buyers that regret what they've done because they don't have a clear plan and vision for the future.

[raidarksword]

I believed this dip is only part of the price corrections and nothing to panic like everyone else that carried away that made them panic and startled them to sell their assets. In this industry losing control of emotions will only make people make bad decisions that's why this will be the important piece to a person to make good and wise decision no matter what may the situation it may be.

[manfredmann]

I suggest you need to hold not diversified because other altcoins are actually bad and I do not believe in them. I only believe in bitcoin. There are good altcoins in the cryptocurrency market but when you pick at them you will be having hard time. ETH is good but I do not also it would be that good to hold in the long run. Remember ETH once had drop to 190$ and it can happen again once you diversified your crypto investment to these altcoins.

[pinggoki]

I am thinking that the dip happening right now is normal, because first of all it is part of investment in which there are really up's and down's sometimes, but as people have been said, don't be carried away by this kind of things because if you are really a true investor then probably you may know what yo do in this kind of situation like this. Every investors and investments has a key on how they will resolve this kind of happenings.

[yohananaomi]

I am thinking that the dip happening right now is normal, because first of all it is part of investment in which there are really up's and down's sometimes, but as people have been said, don't be carried away by this kind of things because if you are really a true investor then probably you may know what yo do in this kind of situation like this. Every investors and investments has a key on how they will resolve this kind of happenings.

Crypto is full of mysteries and anything can happen, I agree with you that the decline / decline is a natural thing and investing there must be ups and downs, obviously that but the most needed is to be able to refrain from panic because if you panic it will be able to make the wrong take actions that can actually be harmful.

but I only suggest to you before you complain about the decline, open it and look at the chart of what has been done so far, the past few months and it is often done both up and down with a fairly high price range in a day. and that's a normal thing and after that it will return to its original state, which will increase again.