Crypto Current Affairs—How To Deal With Cryptocurrency FUD!

The recent bloodbath in the market has caused quite a stir once again. If you bought Bitcoin or any other cryptocurrency at the top, I'm sure you've got a bad feeling in your gut right now. Everything in the market has been on a dive since the past few days and the market seems to be braving a rough storm!

^{Thank you @barrydutton for this meme!}

FUD—"Fear, Uncertainty or Doubt" is often witnessed in these times. When market rallies upwards we often witness a major hype which causes our small crypto market to surge. The moment the market starts correcting, every skeptic and their uncle starts FUDing causing panic amongst smaller investors and especially noobs in the crypto market.

In a traditional and regulated market such as stocks there are strict rules against releasing false information that could potentially cause huge upward or downward swings. But given that there are no similar rules governing the crypto market with multiple exchanges and low liquidity, it's easy for large players to influence the market to force it to move either ways.

Bitcoin as we know has the largest market cap today but it's liquidity is nowhere that of a FIAT currency such as Euro or USD. So if a large investor decides to buy or sell 2$m worth of bitcoin it can easily cause a spike in the price and if someone sells similarly large amounts quickly it is likely to cause a crash.

A seasoned investor/trader knows this and they usually buy more when the price tanks to the floor and this allows them to mitigate their risks and profit sooner when the price retraces.

The recent upward swings has caused many people to cash out their profits so we're likely to see the markets swing with greater than usual volatility for sometime. Most often, FUD also results from criticisms labelled against cryptocurrencies based on inaccurate or misleading information.

^Source

Bitcoin crashes are commonplace in the crypto world. It has happened several times before, and is likely to happen many times in the future. Being the largest crypto in terms of market cap it pulls everything down with it. We're now seeing this with Ethereum as well. Nothing surprising here.

I've seen the panic on crypto groups on FB, on Steemit.Chat and other places where users have reached out to ask if they should sell their Bitcoin/Altcoin holdings to cut their losses or hold on. You will see FUDsters everywhere, even here on Steemit!

Therefore, it's important that we only invest what we are willing to lose 100% in crypto. Crypto is still not the place to put in your entire life's savings for a quick short term return for most of the users.

Keep Calm and Deal with Crypto FUD!

1. Information is key to being successful. In the world of online cryptocurrency trading, obtaining the right information is the difference between making a profit or loss. Learn to separate the false news from the truth. You can know a lot these things by participating on various channels of communications related to your desired crypto and learning to wade through the BS to find the correct information.
2. Unless you are in a financial emergency, try not to panic sell during a bear phase. It's likely that the crypto you are holding will retrace after a crash. Example, today Steem hit $0.99 and if you sold it thinking it would go below 90 cents you'd have lost the opportunity to buy more at $0.99 and at the time of press its at $1.20 already. Anyone who trades the market can be opportunistic and learn to read the charts for greater chances of success. Trade wisely.
3. Cut the noise! It's important to ask feedback from the community. But if you ask too many people you will get far too many different advice and this will stress you out. Ask 1-2 top traders or known investors who seem to have better knowledge about the market movements and could offer some decent advice. If not, simply avoid seeking advice. If you post on a Facebook group asking what you should do, even a real life milkman will appear, pretending to be an expert offering you incredible trading advice. Listening to such people will result in losses. No one can predict the future, at best you can simple prepare for it. Keep both your ears to the ground.
4. If you are a noob then you might want to read @connecteconomy's article, 'Going from Noob to a Whale in 4 Minutes' to better understand crypto terminologies and move onto basics of charting and trading.
5. FUDing is commonly seen everywhere and on all social platforms. So proceed with caution and grow a thicker skin to brave the markets when they are in a seemingly unstoppable dive. When the mice scramble, men rise!

From perspective of Steem crypto, remember we've seen the floor at 7 cents and we've come a long way from there. Use this opportunity to post more and enjoy a relatively greater distribution of Steem when the price is on the lower side.

Good luck to you dear readers!

Disclaimer: This is a personal opinion and should be treated as such. It is not a trading/investment advice. Cryptocurrencies are subject to market risks. Only invest that you are willing to risk.

Thank you for your attention and feedback on my posts!

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