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Author Topic: How did you deal with the BTC flash crash?  (Read 1000 times)
BetVIP
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August 26, 2014, 09:51:24 AM
Last edit: August 26, 2014, 10:09:07 AM by BetVIP
 #1

Its seemingly random volatility is one of the main reasons outsiders are scared witless at the prospect of buying into Bitcoin. And for those of us holding the currency, seeing headlines like Price of Bitcoin Drops Below $400 in BTC-e Flash Crash are hard to ignore.

The fact that there are no definitive causes behind these massive movements is enough to make early adopters sick to their stomach, and veteran gamblers a whole lot more aggressive in their wagers.

But as serious gamblers, should we even be concerned about the changing price of Bitcoin on exchanges?

This article aims to share a few ideas that will make the fluctuating price of Bitcoin a non-issue in your life, making you a more confident gambler and Bitcoin user.



Don’t buy into the panic

While most journalists still don’t quite get Bitcoin, they do understand its price volatility. And given their thirst for drama, tend to have a field day whenever the currency takes a knock.

But it’s not just the media who are to blame for the panic, many amongst the Bitcoin community are equally responsible. The community is always growing and those who’ve just bought in, aren’t used to the sting of a price drop.

So they flock to Reddit and bitcointalk.org to voice their anxiety and find out what caused the dip. But with no clear answers, their frustration increases.

Gamblers at this point will usually do one of three things:

1)      Cash out and run for the hills

2)      Up the stakes on their bets to make back the lost funds

3)      Ride it out, maintain their betting strategy and chalk it up to experience

Understand the nature of the coin

Regardless of how the currency, community and infrastructure have grown, Bitcoin is still very much in its infancy. We’re all still learning, and adapting to the currency’s maturation process, and there’s still very little certainty around Bitcoin’s future.

Change is the only guarantee in this space. Those who’ve been with Bitcoin since the early days, know what it’s like to see the currency spike and dip, and often aren’t alarmed by even seismic price shifts.

The attitude here is that there will be wins and losses and oftentimes there’s very little most of us can do to protect our funds. Accepting this will make your experience with Bitcoin a lot less difficult.

Don’t bother with the why

The price of Bitcoin can jump dramatically as a result of any number of variables including large transactions, public opinion, margin trading, etc.

Unless you’re trading Bitcoin, getting involved in the causes of its shifts can be a serious waste of time. As sports bettors our priorities lie with the sports, teams, players and games.

Losing focus when the value of our funds is compromised is only natural, but that doesn’t mean we need to spend hours trying to decode the blockchain to figure out who’s to blame.

Bitcoin gambling requires serious discipline

Discipline is what separates master gamblers from the rest. And it’s often the ones who don’t get phased by external changes, who come out on top.

To succeed with Bitcoin gambling, you don’t necessarily need to stop watching the price movements altogether, you just need to temper your reactions towards them.

The more you allow outside influences to determine the way you bet, the less control you have. And staying in control of your betting is fundamental to your Bitcoin sportsbetting success.

Stick to your guns

Much like discipline, consistency in your betting will always tip the odds in your favour. Choosing a betting strategy that suits your personality, and sticking with it all the way through the inevitable dry spells, will greatly improve your Bitcoin gambling success.

The price of Bitcoin should never have any effect on your bets. It doesn’t matter whether it’s going up or down.

Rookie gamblers may find this to be overly conservative. After all if the price of Bitcoin goes up, you’ve made some extra cash to bet with. But the pros know that any win, however small or large is worth banking.

Diversify your assets

With the price of Bitcoin in a constant state of flux, you should never invest more than you can afford to lose. While the future of Bitcoin is looking brighter every day, it’s by no means a safe long-term investment vehicle.

Just as investors are encouraged not to put all their eggs in one basket, so too should Bitcoin users not bet all their money on the currency.

That’s not to say go out and buy into a few other altcoins. If you’re the type who’s concerned about the federal reserve being in control of your finances, perhaps a better alternative for you would be to invest in appreciating assets; art, real estate, antiques, etc.

Take a step back for some perspective

Sometimes when the whole community seems to be wrapped up in an utter state of panic from flash crashes and the like, it’s important to take a long-term view on the value of Bitcoin.

For a resource that’s so foreign to any currency we’ve ever known and used in the entire history of the world, it’s pretty incredible to look at Bitcoin’s rate of growth.

In less than a decade, this digital currency has spread to every corner of the earth, building up and crashing, again and again, growing in its user base and converting even those with little to no computer literacy.

As the transfer processes become easier and easier, with more user-friendly interfaces, there’s no doubt that the coin’s value will increase with the impending demand.

Keep calm and carry on

So the next time you find yourself watching as the Bitcoin price soars and dips, STOP! Know that this is what you signed up for when you choose independence over regulation.

This is indeed the beauty and excitement of a system that functions without authority. And whether you like it or not, this is how the Bitcoin environment will remain for a long time.

In short, be cognizant of your choices when big changes take place around you and you’ll always stay one step ahead.

 

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August 26, 2014, 11:06:10 AM
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I bought more coins @ around 450 ish in this most recent crash.

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