Bitcoin : the worst of the correction appears to be behind us

The month of January and the first week of February was a difficult period to live in for investors in Bitcoin and crypto-currencies in general. At the beginning of this month, it was the same panic on-board with some of them, the fear being fed by media stories announcing for the umpteenth time the death of Bitcoin. Today, I think that one can say that the worst of the correction is behind us.

The crypto-currencies, a market is particularly volatile

If you have started to invest in December or January, there are strong chances that your portfolio is in loss. Nobody likes to see red in his dashboard, but it is something that you must accept when investing. This is true in the equity markets, but even more in the area of crypto-currencies, which shows fluctuations of prices much higher than the traditional markets.

After all, if we see with the smile in a dramatic increase of 20 % in 24 hours, it must be able to accept movement just as steep in the opposite direction. We must not lose sight of this : at the beginning of the month of December 2017, the market value of all crypto-currencies amounted to barely $ 300 billion. Towards the peak of 7 January, it was to more than 820 billion ! Any increase in the unreasonable is followed by a correction, it is an immutable rule to which no exception the market of cryptos, despite its particularities.

As painful as it could be, the correction that we have known is an event that is very healthy for the market. Since the lowest that has brought the value of the complex at a little over $ 280 billion, the machine is started again. At the time of writing these lines, we are already more than 470 billion. This forecast reflects the views only of me and in no way constitutes investment advice : by the end of the year, the trillion will be overcome and Bitcoin will be over $20,000.

How to behave during such a correction ?

There are two options : you either panic early and you sell. Either you do nothing by not succumbing to the temptation to sell in panic… then as we approach the lowest. A lot of investors in the crypto-currencies have been attracted to the sector because of the stories of millionaires of Bitcoin started from nothing. There is nothing wrong with that, it is the norm. However, it is important in a second time to understand the complex, that could be the future of crypto-currencies, to be able to confidently go through this turmoil that may become a blood bath. You can educate yourself through the many resources that are found on the Internet, or purchased for a few euros a good book or e-book on the crypto-currencies.

pires correction de BTCThe worst correction of Bitcoin – Source

The story is rich in lessons

Study the history of the price of Bitcoin and company you will also be very useful to survive these corrections without worrying about or, worse, lose sleep. If you have invested in the highest, and you are terrified by what just happened, be aware that some investors who have earned fortunes since then have experienced much worse. For example, at the end of November 2013 the price of Bitcoin has fallen nearly 90 %. On November 17, 2013, the price becomes $ 755 $ 378 $ in less than 24 hours. On April 10, 2013, BTC is trading at 259,34 dollars to collapse up to $ 45 three days later.

At the time, those who had been attracted to Bitcoin in the hope to become rich in record time have probably thrown in the towel. Those who had invested in because of their convictions were hung on their belt… and became the millionaires of Bitcoin as envied. Personally, I have taken advantage of this correction to invest more, especially after the testimony of the chairman of the CFTC to the Senate, which has strongly dispelled the risk of regulations. I have a scenario in which I integrate the new information when they fall and I want, without letting myself be influenced by interference and transient emotional factors.

Attention all the same to the excess of confidence

To conclude this article, which wants to be reassuring, a warning all the same : if the resilience of Bitcoin increases with the time, history is not a guarantee for the future. It developed among the veterans of the Bitcoin overconfidence could be one day or the other fatal. There is no guarantee that BTC will not dethrone it a day. Some crypto-currencies have no real usefulness may well see their value drop to zero or almost. So here are two actual advice : invest moderate amount of money that you can afford to lose, and choose carefully your corners. The beautiful days in which one could buy almost anything, and earn money will take the end of term with the maturation of the ecosystem.

  • BitcoinUnicorn

    You touch the $10,000 in the road calmly to the $25,000 now ?