Today's dip is a good example of why it's important to have a plan in crypto.
the markets can remain irrational longer than you can remain
solventliquid.
When the candles are green and everybody is shouting up-only, it's easy to feel good - nearly invincible, as if nothing can stop this run.
But then, on days like today, we feel our price mortality. Nearly everything (besides DOGE and stablecoins) is in the red; and while for the crypto veterans 20% drops are nothing new, they do create some kind of emotion. How veterans react however is different than those from "newbies".
Now, I wouldn't call myself a veteran. I'm "only" 1 cycle in - some are in since '13/'14. However, these past 3-4 years gave me some very hard though valuable lessons.
Most importantly:
Have a plan
A plan can be simple. For example: how much money do I need for living expenses? How many months do I need to save in advance? How high are my taxes? How much buffer do I need for times like these (i.e. buying the dip)?
Once these questions are answered and a plan is in place (i.e. you might need 50k USD liquid (stable coin/fiat) and you have 100k in volatile crypto).
It might suck to cash out, and you don't have to do it all at once, i.e. dollar-cost averaging, but it's a horrible feeling when the prices keep falling and falling and you're forced to sell your crypto with a huge discount. Besides that, you'll also reduce the stress you experience quite a bit.
So, what's your plan?
PS: Not financial advice.
Actually a very good advice, have seen noobs freaking out at every 10% dip and eventually they panic sell. But the longer you are in crypto the more immune you get to dips like that.
Exactly
My plan? Don't sell any Hive until we get to 5.00 USD or until we reach Q4 2021. After that reassess.
at the moment lucky to not need to spend crypto. Also living in a country where just 20 years ago we waited in lines for bread and oil and all the stores were literally empty with inflation of 313 million percent in a month. Earning more never really changed my life style a lot so i hope crypto for me is a long run.
If we really get crazy prices till the end of the year i will probably spend some for some fun things. Hope will not have to cash out but if life says f-u you do what you have to.
how are you dear friend @therealwolf good day
It is very true what you say, in cryptography you learn from the things that happen to you, they are expensive and very hard lessons, but it is the best way to learn
My plan is to diversify the investment in various cryptocurrencies, and in mining tokkens, with this you get passable profits, which can be used as a contingency plan.
I have big plans with my hive power, that is destined to my retirement insurance, I want to grow in it, as much as you can
I take this opportunity to wish you a happy start to the week
This bull run dips are smaller but way sharper than last bull run. I think it's the speed of the collapse that shocks people, not the total percentage loss. Hard to time those.
You plan is quite great, its good to have a plan.
As of this moment, I remain in
Good evening. In the country where I live, it is difficult to plan something, it is much more important to learn how to be a thrifty person. Thanks a lot for your message. I wish you well.
I wish I had such knowledge as you
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No needed to sell the hive without the need for money in living.
i always thought i was a great trader in 2017 lol, i think you could have bought anything and made money.
For me it all starts with basic data: how much of everything do I own, how is the cash flowing and how much of my expenses is covered by my salary (hopefully less and less) and by my passive income (hopefully more and more).
X% Crypto, Y% cash-on-hands, Z% real estate, W% metals, S% stocks, etc. Updating monthly, adjusting every now and then.
Hodling most of the crypto, staking and lending some. When it comes to investing I like it boooooring.
I made it here basically DCA (and posting on Hive and its predecessor) and took some profits along the way during crazy spikes.
PS: Obviously not financial advice. I'm not retired at 37 and only saw a Lambo once, a long time ago. DYOR :)