After one of the most explosive bull runs in Bitcoin’s history, we woke up on Monday morning to a rather unpleasant surprise. Bitcoin dropped nearly 20% to the lowest level we’ve seen in a while. Veteran investors remained calm and HODL-ed on. But watching the price dip on a large investment can be excruciating for all but the most hardcore Bitcoiner.
Fortunately, Bitcoin managed to push through the week, closing back near its all-time high.
The first big correction of 2021 has a few lessons to offer us.
A crypto bull run is exciting. You can wake up one morning and see your investments double, if not more. Celebrate, by all means – but always remember – cryptocurrency is still one of the most volatile markets.
Investing is never an emotional act. If it is, you’re doing it wrong.
Watching the Bitcoin price drop might tempt you to ‘buy the dip’ – to buy a large amount of crypto while the price is low. Buying low and selling high is guaranteed to work only if you can see the future, or if you’re really lucky. Make sure you’ve done your research.
Remember to rupee-cost average, and hold for the long term. Patience pays off.
Give yourself a break!
Watching your portfolio 24/7 will only induce anxiety. Stepping away for a while is the simplest and best way to overcome FOMO. Slowing down helps overcome the anxiety pushing you to act quickly – and there’s plenty of great ways to spend this new free time.