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

[kulboi123]

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.

[1713956401]

1713956401

[1713956401]

1713956401

[1713956401]

1713956401

[Bitstar_coin]

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.

It is always better to have it in mind that there will be time for correction, even if you diversify as long as the assets is crypto the dip will also affect it, anyone who can not afford to accept the dip can strategize to sell while the market is full operation oe when the price is pumping, dip is part of the market, it helps the market to be healthy.

[TheUltraElite]

It was predictable. Once a round figure hits, the selling pressure increases and that happened once the price was touching 41k USD yesterday.

For the newbie investors out there who got FOMOed in buying at 35k USD levels, I would say wrong timing because if they did not sell at 40k USD and were drooling for more then they lost money today. This is the basis of a speculative market that is unregulated. You must sell at the profit and not expect for more when already there has been massive gains in the price, because a dip is incoming.Timing is what I would give a bigger importance to in the bitcoin market. Risk managing is cool but timing is everything here.

The speed at which the price dropped does not make it seem bulls can take over right now. Price will rise again but first it needs to stop dropping.

But this is a wrong argument to show that altcoins need to be bought. No, altcoins are not worth your money, unless you are advisor of that project, in which case you are going to be rich already. Altcoins will not let you sleep soundly at night because of the continuous cycle of fear and anxiety added to it the manipulation from the team.

[Fundamentals Of]

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.

It is always better to have it in mind that there will be time for correction, even if you diversify as long as the assets is crypto the dip will also affect it, anyone who can not afford to accept the dip can strategize to sell while the market is full operation oe when the price is pumping, dip is part of the market, it helps the market to be healthy.

OP is probably referring to diversification not just within cryptocurrency but outside of it, with other assets apart from the ones which we can choose from in cryptocurrency. As OP pointed out, giving your 100% investment capacity to cryptocurrency alone is a bad strategy, if it is at all.

I agree with OP. If a dip in Bitcoin's price is depriving you of sleep then you have probably invested more in it than you should have. Perhaps you need more diversification to balance your investment portfolio.

[Wenbing]

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.

This is why investment expert talks about investment philosophy and risk appetite of investors. To invest you need to determine your investment profile and also to have a portfolio that suit your profile.

To me, i have crypto and Start up equity in my newly developing portfolio.  In the crypto asset i have, btc and Eth. i did this so that i will see what is working well and what is not working well. This will help me to minimize the risk of putting all my eggs in one basket too.

It was predictable. Once a round figure hits, the selling pressure increases and that happened once the price was touching 41k USD yesterday.

For the newbie investors out there who got FOMOed in buying at 35k USD levels, I would say wrong timing because if they did not sell at 40k USD and were drooling for more then they lost money today. This is the basis of a speculative market that is unregulated. You must sell at the profit and not expect for more when already there has been massive gains in the price, because a dip is incoming.Timing is what I would give a bigger importance to in the bitcoin market. Risk managing is cool but timing is everything here.

The speed at which the price dropped does not make it seem bulls can take over right now. Price will rise again but first it needs to stop dropping.

But this is a wrong argument to show that altcoins need to be bought. No, altcoins are not worth your money, unless you are advisor of that project, in which case you are going to be rich already. Altcoins will not let you sleep soundly at night because of the continuous cycle of fear and anxiety added to it the manipulation from the team.

"Timing is everything" in crypto, that is more than a fact but a truism. Investing in crypto needs attention, and being current to the movement of the price, so as to know when to cash out.

you see, greed is always the problem. Some investors would have profited greatly at $40k, but they felt there will be a continuous rising probability and possibility. Well, if you cant hold then maximize your investment with attention to TIMING.

[moderator's note: consecutive posts merged]

[arwin100]

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.

We cannot avoid sometimes to get upset for the turn of events on  bitcoin since many are so happy and thinking that it will reach to $50k but looks like there's a sudden turn happen. And for this we really need to learn the risk management since it can give us an evaluation on how to turn the market upset unto earning opportunity.

[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.

[monatana]

When I saw the candle last night I got info from my friend about saving USDT, but I still have a few coins to hold, it is not recommended to save 100% crypto because it is risky if it decreases

[acquafredda]

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.

[Question123]

Being emotional for evey dump of the bitcoin is not really needed because it will cause for you to panic and the bitcoin you keep possible to sell even you lose money. Being calm during the dumping is really good if you are chosen to be longterm investors and the fund you use is the extra. I think why people are panic because they are chose shorterm, not enough knowledge and also they use the money for the daily needs.

[jimmywh]

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.

[CODE200]

There are just users and investors who are getting the idea of this industry, the wrong way. Not because there is a rally in the market price of a crypto, Bitcoin perhaps, it would already mean that it will be consistent. We should understand how things are really going. In this industry, there's no consistency with the movement of the market prices. There is always a chance for a dip, and a chance 'at peaks', we just cannot tell. Speculations are somewhat helpful but it will not determine what will exactly happen. Actions should be thought as many as possible before doing the actualization. Diversification won't guarantee less risk, it depends on to where will you diversify your investment. The best way to lesser the risk is to not make hasty actions, just carefully observe the charts.

[finn.cole]

Yeah, I agree that you need to be stress-resistant in investing. It's a crypto exchange and every day there are ups and downs. Today may be lucky, tomorrow not. And that's okay! A couple of days ago bitcoin was worth 41k, and today it has dropped to 33k. You just need to deal with stress and be okay with things that happen.

[samputin]

Experiencing stress with the dip is just normal, IMO. I mean, some things really has the capacity to bother us somehow. But what's important is that you don't dwell on that stress because it won't help the price to spike in the first place. It's okay to acknowledge your feelings but not for too long. This is not a place for those who cannot deal with their emotions well. This dip is also normal so get used to it.

[BrewMaster]

if anyone is getting emotional today because of the dip it is because they are absolute beginners and they were too lazy to take a look at the history of what they bought! they just jumped in and bought bitcoin without seeing the charts ever.
otherwise anyone who has looked at the charts knows that such drops are very common in bitcoin and they are indications of a healthy and strong bull market.

If you got stressed out, you probably need to diversify your portfolio to appropriate allocations for your risk tolerance.

unfortunately most people see this as meaning "buy altcoins" and then end up losing a HUGE amount of money since altcoins get dumped whether bitcoin rises or falls.
just take a look at the altcoin board and see how many are talking about "diversifying" into shitcoins.

[dothebeats]

I guess I was quite an odd dude then. I called the top @ $41k and said to mysef that it will be hard to breach that price just yet, and noticed that the orderbooks suddenly filled on the sell side. I converted back to fiat almost immediately and price came crashing down an hour later. Right now I’m still enthusiastically waiting for the price to go sub-$30k before I buy again. Managed to earn 30% in profits from $24-$27k so I thought I could repeat another lucky beat for myself. There’s nothing bad seeing red streaks if you’re in it for the long time. It helps you average your buys and put you in a rather comfortable position, too, in the long run.

[seagates]

I not feel any special emotions today. I just sell everything in my ownr wallet yestarday and will rebuy it letter. Just a good chance to earn a bit more in coins for the future. Maybe even mid-term future

[john_nautica]

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.

It is always better to have it in mind that there will be time for correction, even if you diversify as long as the assets is crypto the dip will also affect it, anyone who can not afford to accept the dip can strategize to sell while the market is full operation oe when the price is pumping, dip is part of the market, it helps the market to be healthy.

Well said. Truly, stress is expected in any investment we may choose to do but not being able to handle it is not good. As they say being too emotional is not just bad for overall wellbeing but also affect people in making decisions that are not sound and wise. Thus, if this dip brought much emotions and stress it is indeed a time for an aspirant to diversify investments. And most importantly is to seek knowledge and observe every market situation and its movement when making investments.

[Peanutswar]

On the week I saw something changes with the market price of the bitcoin and ethereum I make some trend line and use the indicators and there is something suspicious with the MACD indicates there are upcoming downtrend and what we expected this is another correction if the Bitcoin does not fall this time at the price of 32k there is a chance it will go up another ATH, most likely 45-50k USD and the Ethereum will start to make another move. Don't forget the alt season. Also, there is another event which is the Chinese new year last year we experience a red market.

[cabron]

Not everyone can manage a dip like this one, the drop is almost $10K and a newbie who just bought BTC hoping to want to earn just lost the value of their coins. If they tend to need money right now, they will try to cash out in loss.  

Some talks I've read was that the reason could be the riot on Whitehouse and Biden delaying the stimulus package. Whatever risk management means but for the rest of us, it's about what they expect to earn and disappointed when the dip began.