The cryptocurrency market has experienced massive volatility in the past few weeks, making headlines as some digital coins rise to record highs and others suddenly plummet in value. Because of this, many people are wondering if this volatility means the cryptocurrency market is unstable and whether it’s the right time to invest. As an experienced trader, I know that the crypto market is actually one of the most stable markets out there and that it offers tremendous opportunities for those who know how to trade it effectively. Here are five reasons why you should look at this cryptocurrency dip as an opportunity instead of a crisis.
1) The cryptocurrency market is still in its infancy
While some investors see a dip as a reason to sell, savvy investors know that a dip is actually an opportunity. Here are seven reasons why:
1. It’s a chance to buy low.
2. It’s an opportunity to learn.
3. It builds character.
4. You can make quick profits.
5. It’s a good time to buy in bulk.
6. It’s the perfect time to bring your friends and family into crypto investing! There will always be dips, so it’s important to remember that this is not a reason to panic or lose hope. Instead, you should use dips as an opportunity to invest and grow your cryptocurrency portfolio.
7. You don’t have to buy a whole Bitcoin! Investing in cryptocurrency as a whole can be intimidating for some people. It’s common to feel like you have to purchase a whole unit of your chosen cryptocurrency, and it’s easy to see why: trading fractions of one unit isn’t common outside of traditional fiat currency. Luckily, you don’t need to buy an entire coin – and doing so can actually hinder your investment gains because cryptocurrencies are very volatile!
2) Every crypto bull run has a correction
1. A correction is a healthy part of any market and helps to sustain long-term growth.
2. Corrections provide an opportunity to buy into a market at a lower price point.
3. They also present an opportunity to exit a position if you’ve been thinking about selling.
4. Corrections can also be used as a buying strategy by averaging down on your position.
5. Finally, corrections create fear and uncertainty which can ultimately lead to more opportunities for those who are willing to take on more risk. Crypto bull runs typically last from 6 months to two years with corrections along the way. To give you some perspective, Bitcoin (BTC) has experienced four major dips in the past two years: March 2018, August 2018, November 2018 and January 2019. BTC went up each time after these dips: +7% in March, +45% in August, +116% in November and +55% so far this month. The latest dip was caused by concerns over Facebook’s Libra coin but this seems like it will only serve as a minor bump in the road since the FUD around Libra has dissipated while BTC continues to trade higher on its new highs post-Libra announcement.
In closing, while corrections can seem scary they are a natural part of any growing market. I hope that by providing you with some insight into what causes crypto corrections, I’ve demonstrated that in fact they provide an opportunity to profit from dips. To be clear: there are no guarantees when it comes to trading but in general if you’re looking for where to invest or trade cryptocurrency, you’re better off buying BTC now rather than waiting for it to go back down because odds are it will only increase in value over time.
Binance’s Beginner’s Guide To Trading Altcoins: In order to trade altcoins on Binance and make a decent ROI (Return on Investment), one must be comfortable with the exchange itself and how trading works.
3) When crypto dips, it means there are more deals available
1. When prices are down, you can buy more for your money. If you’re planning on investing in cryptocurrency for the long haul, then dips are actually an opportunity to buy more coins at a lower price.
2. Dips can also be a good time to invest in new projects since there will be less competition for attention and funding.
3. Prices always rebound eventually, so buying during a dip means you can get in at a lower price and potentially sell when the market rebounds for a profit.
4. Dips can present an opportunity to learn more about the market and how it works before investing more money.
5. Finally, remember that cryptocurrency is still a relatively new industry with a lot of potential for growth.
Even after all of that, it’s probably a good idea to consider holding off on buying at least until you’ve learned more about cryptocurrency. There are always new projects and innovations coming out in cryptocurrency, which means it can be wise to wait until there’s a dip in price before jumping into new opportunities.
4) There will always be investors and new users entering the market
When the market experiences a dip, it’s an opportunity for new investors and users to enter the market. This is because the prices of assets are lower, making them more affordable. For those already in the market, it’s an opportunity to buy more assets at a lower price. This can help you increase your position and potentially profit when the market turns around. To be clear, this doesn’t mean that dips should be actively sought out. If you don’t have money set aside that you’re comfortable with losing, then now might not be the best time to invest. If you do have some spare funds that could get lost without hurting your long-term financial goals too much though, then this could be an excellent chance to take advantage of market dips. You could even keep investing as the prices fall since they may go back up again in the future. And remember: Just because Bitcoin has fallen doesn’t mean other cryptocurrencies will follow suit. Many cryptocurrencies like Litecoin and Ethereum have actually seen their values rise during this dip period. It really depends on what type of cryptocurrency you’re interested in investing in.
5) If you’re patient, this dip could put you ahead of your competition
1. You Can Buy More for Less.
2. The Market always corrects Itself.
3. You Can Benefit from the Wisdom of the Best.
4. You’re in for the long haul, not a fast sprint.
5. There is nothing to lose (and everything to gain).The cryptocurrency market may have taken a bit of a tumble, but that doesn’t mean it’s not worth investing in. In fact, this dip could be an opportunity to invest in more coins and grow your portfolio faster than you otherwise would have been able to do so if the markets were at their peak. With Bitcoin hovering around $9000 USD, this dip has brought it back down from its all-time high of over $20000 USD less than one year ago. Plus, with many coins trading at half their all-time highs as well as Bitcoin’s plunge back down into bear territory, now might be your chance to buy low and potentially sell high!