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With the chameleon nature of cryptocurrency, one can not but wonder what is happening in the cryptocurrency realm. In a second a little surge of price and in a blink of an eye follows a disastrous dip. This makes it difficult to predict whether the market is going towards to upward trend or a downward direction.
The most amazing part of it is that we all know, that once BTC dips a little a lot of ALTCOINS usually follow the trend. This tells us how powerful the father of cryptocurrency can be in the market trend. Should I say most of the cryptocurrencies are built on the solid rock of BTC which is why they tend its pattern?
Yesterday, I was so particular about the ALTCOINS I can invest in. I monitored the market before I eventually settled to go for BOME and WIF, but unfortunately, BTCc prices moved towards a downward trend which made the market quite dizzy. Although, I have the belief that the market will still find a way to reset itself sooner or later. Likewise, for the little hive, I bought on an exchange, I have been holding about 4k hive on a platform, at first, I made de couple of dollars when the BTC went above its previous all-time high. However, since I didn't take all the profit and leave the capital intact, I later noticed that I had lost hundreds of dollars.
Although, the bullish and bearish nature of cryptocurrency can be a blessing in disguise particularly if someone can capitalize on the little dip and market and re-invest heavily. But the question is what if it goes towards the downward trend even more? What will be your response? It is to panic sell or hold more position?
The only I can never allow you to hold is when you are trading the future and the market dips. Unless your leverage is not above 5 per cent that is the only way you can think of holding more position by buying more to avoid liquidation. However, if you leverage way above 10 per cent it is not advisable to hold more when the market dips if not you might lose a fortune in the process.
There is what is called calculated risk, but most time it doesn't work for future trending because in a twinkle of an eye the market can reset and in the process, one is bound to lose a fortune.