Crash bitcoin (BTC) and other cryptocurrencies: What to do if you have them?

Crash bitcoin (BTC) and other cryptocurrencies: What to do if you have them?

This is probably a question many have been asking for a few weeks… Everyone who has invested in cryptocurrencies has lost significant sums. That’s a fact. Now… what to do? Some would say wait. This is my position. It’s probably best to wait. For a traditional market, and the Stock Exchange, prices are almost certain to rise. It is a game of patience. Whatever one thinks about bitcoin (BTC), or cryptocurrencies in general, it certainly has intrinsic qualities. We can see the decentralized nature of cryptocurrencies allowing us to escape from traditional fiat currencies.

The causes of the cryptocurrency crash

The latest crypto crash can be attributed to many factors. The rising fear of inflation, the fear of drastic regulation of cryptos in some countries, the significant collapse of the Nasdaq (cryptocurrencies are highly correlated), the infamous crash of TerraUSD (UST) and Terra (LUNA), the probable bankruptcy de Celsius, etc. All of these factors are an immediate catalyst for such a sharp fall in prices. As a result, the cryptocurrency industry currently has a market capitalization of $ 977 billion, about a third of its all-time high. Retail investors around the world have suffered significant losses… In fact, most cryptocurrencies are trading 70% below their all-time high.

Your losses in bitcoins (BTC)

On January 1, 2022, bitcoin was trading at $ 47,733 and is now trading at $ 21,062. So, with a negative return rate of 57.33%, $ 1,000 was invested at the beginning of the year at $ 426.70. Or 404.52 euros.

For losses in ether (ETH)

On January 1, 2022, Ether was trading at $ 3,313 and is now trading at $ 1,098. So, with a negative return rate of 69.54%, $ 304.60 was currently worth $ 1,000 invested at the beginning of the year. Or 288.77 euros.

And in Dogecoins (DOGE)

On January 1, 2022, Dogecoin was trading at $ 0.15 and is currently trading at $ 0.057. With a negative return rate of 65.80%, the value of $ 1,000 invested at the beginning of the year was $ 342. Or 324.23 euros.

Faced with the collapse of cryptocurrencies and bitcoin (BTC), what to do?

Sell ​​what you have and try to minimize the damage? Or hang on and hope things improve? This choice depends on a number of factors… such as how much you have invested, the amount of time you have invested and your own risk resilience. As a general rule, only venture capital should never be invested. That is, money you can afford to lose. If you have taken this approach with BTC and its rise or fall is unlikely to cause you material hardship, it is best to keep your investment.

Crypto crash: do not panic and may continue to invest in bitcoin (BTC)

The biggest risk is to panic. The first thing to do when you realize that prices are falling for free is to panic. There is nothing worse than responding to emotions. You will probably sell your cryptocurrency at the least favorable time if your panic subsides. Is called a panic sale in English. Another catastrophic consequence would be to make movements between different purse promptly and without any precautions. An alternative, which can involve many risks, can also be very advantageous. In fact, even though BTC is currently priced at 21,062 euros, it can be very interesting to buy and resell when the price goes up to several thousand euros. Some see the accident as an opinion. It’s sales! Time to fill up. It all depends on your vision for your investment and how much you might be ready to implement (and therefore lose).

Finally, my advice would be not to panic. Crypto-currencies are crashing and you have lost a lot of money. Do not be worried. Crypto-currencies have truly intrinsic qualities and are here to stay. We are only at the beginning of their use. BTC itself is another option that still offers many freedoms in an economic system that is on the verge of collapse. Admittedly, cryptocurrencies are also affected by the situation, but for now, it is probably the best option to stay. If you are patient, the BTC it can regain the lost value and even more. Nowadays, it’s better to wait, it’s probably the safest option …

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Gregory Morat

A student passionate about entrepreneurship and interested in the technologies behind cryptos! Yes, I’m convinced that the two are closely linked: blockchain and NFTs are revolutionizing many sectors and presenting unprecedented opportunities.

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