The price of Bitcoin in the last two months have significantly increased and even when we've also experienced some little negative movement in price, there's no doubting the fact that the current price is still a shock to many. Considering the current price and volatility rate of the mother coin, is this a call for more investors to embrace Bitcoin and invest hugely or a time for existing investors to be worried about a possible significant bearish run in the nearest future?
It is not new to see the price of bitcoin move up and down. As we see it at high these days, expecting a drop should not be disregarded, as it could possibly come anytime.
While other people are hoping for the bull season to stay long, more people are also hoping for a drop for them to start buying. That is why I'd never think investors would have such worries, as they believe that they will lose nothing if they just hold when bearish comes. Perhaps they find the situation more advantageous as they can buy more bitcoin.
For crypto holder not to lose during bearish period, definitely, he should not think of selling his assets. You will only lose if you sell it at a lower price. But if not, and wait for the better days, you will surely be on the positive side. Volatility in crypto is still one of the major considerations in this market, not only with btc. And the main reason why people are being interested in this market is owed to volatility. Now, it is your strategy on how to take advantage of such feature. The rule is quite simple -"Buy low, sell high". And yet, when you apply it in actuality, would be a challenge to execute.
And the loss that we are seeing is just paper losses, so unless we are not selling then we shouldn't be worried. The thing is that there are investors specially newbies that are really nervous when they see that their investment are going down and so they immediately sold and not look back. Although they can reinvest in the future specially if they see there mistakes the first time.
So the way forward, and this could be difficult in the beginning, is not pay attention to the price itself and just let your Bitcoin sit in your wallet for a long time. And the best time to sell is during a huge rally or at least near the top of the his bull run cycle and if you time it right, then close to all time high.