When in doubt… zoom out.
Have you ever seen the 1 hr BTC/USD chart on a bad (or good) day? It can be pretty incredible. If you’re not used to crypto and the inherent volatility, a smaller focus on this very moment can lead to all kinds of disastrous, reactionary and emotion decision making. Usually selling at or near the bottom. Don’t worry you can buy it all back along with everyone else once they price is much higher.
This is the psychology of investing in crypto and it’s human nature to overreact.
Basically, you never want to get pulled into the idea that whatever’s happening right now is surely a sign of an ongoing trend.
Remember back when Covid was just getting started? I do. BTC dropped 40% that day! I told myself I’d buy in the next day if this trend continued, but it headed in the opposite direction from there.
The point is that even in spring 2022 when markets are reeling from all kinds of bad news, the price tends to stabilize once you look out over 3 months, 6 months, a year.
Remember, it’s called a market cycle for a reason.
As you should expect, content on HelloCrypto is not to be construed as investment or financial advice. Content published here are based on our opinions, ideas and on providing information we hope can help our audience to evaluate and navigate the wide world of crypto.
Always do your own research.