Cryptocurrency is still in its early stages, and the future of this digital asset is still being assessed. Despite this, there is great excitement about cryptocurrency’s future holds. Veterans in the fintech industry like Dan Schatt of Earnity urge people to learn about cryptocurrency because it can transform the way users interact with the digital world.
This post explores one of the things crypto users should be aware of – what to do during a down market?
When the crypto markets are down, it can be tough to know what to do. Do you sell, hold, or buy? What if you’re in the middle of a transaction and the market starts to dip?
The answer to these questions is not always simple, depending on each person’s situation. However, Earnity CEO Dan Schatt says some general and all-important guidelines can help you make the best decision.
- If you’re selling because you need the money, then it’s important to weigh the risks and rewards. On the one hand, you may be able to get out of the market and avoid further slipping of funds. On the other hand, if the market does rebound, you could miss out on potential profits.
- If you’re selling because you’re worried about the market, it’s important to remember that markets are cyclical. What goes down will eventually come back up. Panicking and selling at the bottom is not an excellent way to maximize your profits.
- If you’re holding onto your coins, then it’s important to have a plan for what to do if the market dips further. One option is to set orders that automatically sell your coins when they reach a certain price. This can help you limit what you lose if the market falls further.
Another option is to dollar-cost average your way out of the market. This means selling a fixed percentage of your coins every week or month, regardless of the price. This can help you average down your cost basis and reduce your risk if the market falls further.
Considering your exit strategy is important if you’re in the middle of a transaction. If the market starts to dip, do you have a plan for how to get out? Are you comfortable holding onto your coins for a longer period, or do you need to cash out immediately?
Earnity’s Dan Schatt reminds everyone that during a down market is that it will eventually come back up. Panicking and selling at the bottom is not an excellent way to maximize your profits. If you’re patient and have a plan, you can weather the storm and come out ahead in the end.