Fear, Uncertainty, and Doubt which is also known as FUD in short play an important role in the crypto market. I got to know this word when I entered crypto and then I realise its such a heavy word and this situation is ever bigger provided we take the right decision when it happens. In the crypto market, we often come across many situations where any news plays a negative role to bring the market price down and people start selling their holding because of some uncertainty and negative news floating around. This is something that happens quite often in the market and then it happens then we realize the difference between weak hands and holders.
I have seen people getting worried when the market price is dumped with more than 10 or 15% and all of a sudden people get worried about their investment which I think should not be the case. If you believe in crypto and are invested with a long-term mindset then I do not see any reason to get worried and the only solution is to keep on holding your digital assets unless your goal is achieved. I know that this sounds good in theory only but in the real world people usually get worried and start panic sell to reduce their losses however it happens just the opposite and they end up losing their money. Recently we have seen quite a good amount of damp in a crypto market where Bitcoin and other crypto token prices have gone down by atleasy 10% or even more which varies from coin to coin.
To be honest I see such FUD situations like an opportunity where we can buy more tokens but it's very important to have that much courage to buy at a low price because the price can go even lower because and it's very difficult to predict and conclude the dip mark. I did some shopping yesterday with 60% of my money and waiting to see if I can see more price dip. However, I have set some bids with a lower amount, and orders are not yet filed.
My crypto buying strategy is very simple. I buy when there is a dump in the market and I never buy the news. I also continue buying daily through SIP which is known as the Dollar-cost average. In fact, most of the crypto buy has happened when there was a dump, and this way I minimize the loss and maximize the profit.
Also, I don't buy everything in one go and prefer to spend 50-60% of my budget and for the rest, I take a breath so that if there is a dip then I can buy at an even lower price and if no further dip then also I am in profit so in this situation I am not losing anything with my investment. Investment is a journey and we need to plan every step with thorough research and if its done properly then we can reduce the risk and make it way more profitable.
So what strategy do you follow to make the most out of the market dump and do you see this as an opportunity a situation to lose money ?
Thank you so much