Suffered from the recent Bitcoin Crash? Here are 5 Things you Should Do
The Bitcoin price and the entire crypto market have suffered another heavy blow. Bitcoin fell from $ 46,000 to below $ 42,000. We previously listed the reasons for such a crash at this time of the year. But what can you do after the Bitcoin crash to secure your cryptos? Let’s talk about 5 things you should do TODAY in order to gain control back over your crypto finances!
#1 Keep Calm!
As always, when you lose big, it is important to keep calm and not stress much. Not much has happened yet. The Bitcoin crash was big, but not as immense as in the past few weeks. The frustration is understandably great. But we always have to think long-term when it comes to cryptocurrencies. That is why it is first important to stay calm and analyze your portfolio.
#2 Calculate your P&L over different Time Horizons
First, look at your portfolio and analyze how high your profits and losses are over certain periods of time! You can use periods like 1 month, 3 months, 6 months, and 12 months. You will recognize that despite the Bitcoin Crash, you have probably already made profits over a longer period of time. This insight will calm you down and possibly dissuade you from rash sales.
#3 Exchange for Bitcoin or Stablecoins!
In such uncertain times, many investors want to focus more on security. If you prefer a more secure investment, consider swapping altcoins for bitcoin. When you have made your income statement, you should have recognized which coins you used to make profits. Exchange these for Bitcoin if you want more security! Bitcoin is less volatile than other cryptocurrencies. A re-exchange in FIAT currencies would also be possible, but with that, you will miss almost certain medium-term rate increases.
Stablecoins is another option, as they are important to hedge market volatility, even if Bitcoin is down. Whatever happens in the market, your money will still have that same value. you can later exchange them back to your favorite crypto.
#4 Consider Buying Bitcoins at Support Levels
The Bitcoin crash in the USD 40,000 to 42,000 area was predicted by some analysts. Therefore, the surprise for interested investors is not that big. Could the course continue to fall? That is possible. However, a medium-term trend reversal seems to become more likely with every price decline. Therefore, the current price for buying up bitcoins is very good.
#5 Consider Adjusting your Investment Strategy!
Have you always invested irregularly in Bitcoin and other cryptocurrencies? Then you could use this negative news about the Bitcoin crash to adjust your strategy. With Cost Dollar Average, you regularly invest in Bitcoin at certain intervals (weekly, monthly, etc.). This allows you to take advantage of the long-term increase in value of the Bitcoin course. The risk of buying too high and selling too low is reduced. So consider whether you’d rather invest like this.
This means that as long as Bitcoin prices fall, you keep on buying at every new low. This way, when prices go back up, you will benefit on different levels, even in an unleveraged position.