How To Survive the Litecoin (LTC), Ripple (XRP) and Stellar (XLM) Dips
[Photo: source smartereum.com]
Disclaimer: I am not a financial adviser
It is self evident that the market is crashing. Some have even referred it as the bubble popping. They claim it was due to happen since the major coin, Bitcoin, did not have any real value attached to the coin. What drove the coin up, was pure speculation that the demand would be higher at a future date, hence a rapid increment in the price.
This is in opposite as to how regular stocks in the stock market work. Each stock pick is linked to the value of a company. For example, the price of Amazon.com shares did a recent pump when it was declared that the company was getting into healthcare.
Let me be blunt. There are only four things one can do when the crypto market takes a nose dive.
- Sell all and count your losses
- HODL and wait till the market recovers
- Play with the market to accumulate more of the desired coins
- Buy more coins and tokens at a lower price
Option one is a very difficult decision to make. The market has lost approximately $44.2 Billion of the $200 Billion it had at the peak of its market value. This means that the value of all the coins and tokens in circulation has dropped approximately 22.1% in value. Some coins have been hard hit and nose dived a whopping 82% from their peak value. This grand example can be seen when you look at Ripple (XRP) at its peak of around $3.80. The token is now trading at $0.67.
We have all accrued losses with investments. This might be one of those times that we have to bravely accept that our Lambo dreams will never materialize. Cashing out seems like an option. But it would have been better if we had cashed out when the FUD behind South Korea regulation started to appear in the crypto-verse. At least our losses would not be too high if we sold out during Christmas.
But as I said, we shall experience financial losses with time. We just have to bite the bullet and learn from this whole experience. Every great entrepreneur or businessman, has a moment in their life where a magnificent loss, become an eye opener for them. One such example is when a young Richard Branson had devised a way of evading sales tax in the UK and France only to be caught, jailed and heavily fined for his smart decisions. The man now is a Billionaire beyond our wildest dreams.
The second course of action during these trying crypto times, is the option on each of our minds; to simply HODL on to the coins and hope the market will bounce back in a month or two. This method is a more of a d0-nothing approach. It is the easiest of the options we have.
The third option of coping with the stresses of a market correction, is to play with the dips one coin at a time, and amass more of the coin. For example, if you sold 1 LTC at $164 and bought back at $112, you would now have 1.464 LTC. That is a 46% increase in the amount of Litecoin owned. This third technique is more or less the never give up attitude I would only advise the risk taking traders. If you have the risk consumption of a gambler, this one is for you. Otherwise, HODL and wait!
The final option is for those who have some idle capital lying about. This is a good time to buy. Although, I’d advise that you observe the market for further dips.
Whichever the option you pick, please make sure you have thought hard about it and made sure that it is the best option.
All and all, this is a very good lesson for those new to crypto trading and investing. We have realized that the saying that says, ‘High Risk, High Returns!’ is only true when the result is positive.
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