The Cryptocurrency Burp not Bubble Has Levelled Out
The cryptocurrency environment has been showing everything this last week or so just how volatile an environment it really is. It will not have escaped your notice that once again when the markets became very volatile that the usual doomsayers have been proclaiming the bubble has finally burst, and once again they have been proven wrong.
I would call this past week’s events as something of a burp rather than a bubble bursting, for here we are now on Saturday the 10th of February 2018 looking at the values of most if not all cryptocurrencies, and they do appear to have somewhat steadied themselves with their values recovering some of the lost ground experienced this last week.
When the value of Bitcoin and Ethereum and for that matter all other cryptocurrencies started to drop very significantly this week, I did become aware of many people who were using that situation not as an excuse to sell their holdings, but instead to actually start buying into many different cryptocurrencies.
Those people and investors that did keep the faith have been rewarded by some rather impressive gains in the value of their chosen cryptocurrencies today!
That should be a lesson learned to everyone who is currently involved in buying and selling cryptocurrencies and also those who may be about to start doing so for the very first time, for there are way too many people talking down cryptocurrencies and hoping that one day their proclamations of doom and gloom will be proven right, but I doubt they ever will be!
Never be taken in by Fud!
Fud is an acronym that you are often going to find associated with the cryptocurrency trading environment, and it stands for fear, uncertainty and doubt.
It is very true to say that many people still have got the faintest idea in regards to how cryptocurrencies have been designed and how they actually work either, and that is also true of many people who are employed by news media outlets too.
As such as soon as they feel there may be a story brewing in regards to a huge drop in the value of any cryptocurrencies they will start reporting all manner of nonsense, and that will cause many inexperienced and first time investors and users of cryptocurrencies to be taken in by that Fud and they will then rush to sell off their holdings of any cryptocurrencies that they happen to be holding.
I do feel that as soon as many investors in Bitcoin and Ethereum for example do get some experience under their belt they will see right through the huge amount of Fud being spread by some news outlets and will learn to ignore it.
Let’s hope they do for anyone who is buying into cryptocurrencies but then sells them off at a loss due to believing Fud is going to get rather annoyed when they see the markets steady a few days later, which is something that does seem to happen quite regularly!
Taking a Long Term Approach to Cryptocurrencies
Many people are going to be taken in by all manner of useless facts and figures in regards to the potentially huge profits that can be made by investing in cryptocurrencies, and as such one thing I would very strongly advise you to do long before you part with your own hard earned cash buying into any cryptocurrency is to take a step back.
You are rarely going to make huge overnight profits when buying and selling cryptocurrencies, however on the odd occasion that is something that can be achieved, so try and take something of a long term approach to any cryptocurrencies that you do decide to invest in.
Spreading the risk is also something that I would also very strongly advise you to do, for you are much more likely to suffer and experience a huge loss if you pin your hopes on just one cryptocurrency rising in value and you buy large units of it, only to find its valued drops.
By taking a long term approach you are then going to be able to ride out the highs and lows and may be in a position to make some fairly large and decent profits from a range of different cryptocurrencies.
But if you are the type of investor who tends to panic when things are not looking good, then you should look elsewhere to invest your money rather than in the highly volatile cryptocurrency environment!