Bitcoin is Crashing and I’m Panicking – Vincent Zandri
Actually, I’m not panicking. I know, classic bait and switch, right? But I’m trying to make a point so bear with me. In the past, when I’d see the price of Bitcoin (or Ethereum for that matter), enter into a classic bear dump, I’d indeed, enter into a panic. It was as much a physical experience as it was emotional and mental. My breathing would grow shallow, my blood would race through my veins and capillaries at a rate far faster than God or nature intended. My stomach would cramp up, mouth would go dry, and a cold chill would start at the top of my neck and slowly descend the length of my spine.
In a word, the FUD (Fear, Uncertainty, Doubt) would take over my body with all the strength and resolve of a body snatching alien from out of The Thing (the 1980 Kurt Russell version). It would be all I could do to get to my laptop and stem the bleeding as fast as my fingers could type.
I recall this past summer when we dropped from the $14k annual high to around $12K. Coinbase stopped working and all I could do was watch my money melt away like an ice cube left out in the summer sun. Of course, it would continue to fall gradually for the rest of the year (As of this writing, we’re under $7K).
I sold all my Bitcoin that day then bought back in the next day. It was one of the most stupidest things I could have done. I lost money. Had I just let nature take its course and continued to dollar cost average on a weekly basis, my portfolio would still have lost considerable value on paper, but being that I originally bought in when the price was just over $3K, I was still realizing a substantial profit.
This is not to say that you don’t need to keep some kind of stop/loss target in mind (sorry for the double negative). For me, I will sell off everything at around the $4,500 mark should we ever get there (which I doubt). Even then, I’ll still get out with some profits. But you can be damn sure that I’ll be buying back in when by all indicators, the asset has reached the bottoms (the plural spelling is intentional. I’m a professional writer and I like the way it looks).
Bitcoin and Ethereum are getting spanked today, there’s no doubt about it. In fact, I believe the spanking will continue until the end of the year while both bulls and bears take profits for Christmas. But come January 2020, I see both cryptos reaching for new highs, especially in the wake of the spring Bitcoin halving. It means I’m going to calmly sit back from this point out and dollar cost average my way to higher profits. Or heck, if the price goes really low, I might actually buy up a couple more Bitcoins on the cheap.
So then, to recap. When the price falls like a plane crash don’t panic. Instead to this:
1. Take a deep, calming breath.
2. Don’t sell. At least, not right away.
3. Do something else instead of staring at the price. Go for a walk without your phone or play with the dogs.
4. Glance at the price only once per hour. If Bitcoin looks like it’s about to dump so drastically that you can’t help but enact your stop/loss, then go for it. But do so calmly and with the intent to buy back in when things hit rock bottom.
If there’s one thing we can count on Bitcoin to do, it’s drop in value. In fact, it seems like the bears always have the upper hand, until they don’t. In the meantime, take advantage of cheap prices. I just did. I bought more Bitcoin.
Red candles. Is there nothing more beautiful this time of year?
Published at Tue, 17 Dec 2019 00:15:03 +0000
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