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Well that was a roller coaster ride wasn't it? For those who have been watching the crypto markets daily (let's be honest, if you're here you probably pay attention in some shape or form) they might have seen that massive 20-25% dip across most coins yesterday and their heart might have skipped a beat. While the feeling is understandable what can we do or what should we avoid doing in situations like these in order to benefit long term?
1. Ask yourself why are you in this space
This is a relatively simple introspection while not many people do it or critically think enough to go beyond surface level. Why are you in this space? Are you in it to make money? Believe in the tech? Believe in the values / freedoms that cryptocurrency can bring? No matter what your reason is, you need to think long and hard about why you're in this space and basically perform a gut check. If you are in this to make money, you need to ask is what you're seeing the beginning of the bear cycle and are you willing to hold out or DCA more as it continues, or willing to cut your losses to move on to other things. Maybe you believe in the tech and in that case do the projects/coins you're holding actually have a use case and addressing real problems or are they creating a problem and peddling you a solution to this fake problem. No matter the answer its always a good idea to critically think about the reasons why you do things in order not to make rash decisions.
2. Research
What do I mean by research? Go outside your echo chambers first and dig deep and look at news sites and explore the world that is not crypto. Understand what's happening and whether any news outside of the crypto world can actually be causing some fundamental shifts in investing. Second do your research in the overall crypto space, understanding it as a whole gives you a better idea of what the trends are and lets you make a more informed decision.
3. Do not panic trade
Notice how I didn't say sell here, most people will think whenever there's a large market correction individuals panic sell. You don't have to panic sell to make a bad decision. Sometimes people look for safe havens or other crypto assets which are bucking the trend to dump an asset they hold for something that is at least maintaining some value. Don't blindly do this as it more often than not will probably work against you, others will be doing the same and you'll lose out on the value your asset as well as the spread from the slight appreciation of the other asset, not to mention trading fees as well. The very next day these other assets can easily dump and follow the overall trend. Take a deep breath and be methodical in your thought process and game plan, calculate all key metrics and if you truly believe that swapping assets or dumping it into a stable coin will suit you better then and only then should you proceed.
4. Accept your fate
Nothing meant more to me in having a steady mind then understanding that the money I invested is probably already lost. I was fully comfortable with losing everything I ever put in to crypto. It was only was I truly able to function properly in this space and looking at everything with a more detached mind. I'm of course am not a robot and still prone to feelings of market rises and drops but understanding this one point made it a lot easier.
5. Enjoy Life
Go out side, enjoy time with your family, learn something, invest in your career, eat some cake, . Do any of these things to get yourself out of making and stupid and rash decisions.
Practicing one or all of these things will benefit you long term
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