Bitcoin has had a very volatile week and some are saying the top is in. Is Bitcoin about to begin a longer correction and if so, how do you survive it? Here are my tips for handling the volatility and eventual corrections that will come.
As you all know, long term I still believe cryptocurrencies will outperform all other asset classes and we are very early. There are still areas of strength such as Ethereum, Litecoin & Zcash.
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Summary of what I cover:
1. Get out completely and wait it out, look for a bottom or resumed uptrend – risk is prices have already bottomed by the time you get out.
2.Get out partially to limit exposure – buy back in a better prices, same risk as above but at least you’re still partially in.
3. Do nothing and ride it out – long term view/investment
4. Reallocate – Move out of BTC/ETH into others showing good relative strength. Something that will outperform BTC.
Do not trade on margin or borrowed money
Do not invest money you need back soon, in case markets take longer than expected to recover
Don’t over trade, a choppy market will exaggerate losses. Panic selling & panic buying is your worst enemy.