Short answer
Nothing is going wrong. It is all normal. If you expect a constant 50% daily growth, you are simply leaving on a different planet.
Long answer
What it is happening is just a very expected market correction. It is absolutely normal and happened before, with both Ether and Bitcoin. Check charts yourself if you want proof. In the last month the price went too far ahead of the real value, and it’s a damn right time for correction.
What generated the bubble then?
Well, different things happened in the last month...
- Rapid price increase due to activity on Asian market
- Attention from large investors
- Ethereum and Bitcoin are being discussed in the media very often
And these things generated FOMO (Fear Of Missing Out) and a lot of people, who had no idea of what cryptocurrency is, started to invest without basic knowledge about technology and platforms behind cryptos.
What did this FOMO generated?
More fear!
People that invested not knowing anything are constantly looking for reassurances and this is easily visible looking at how many "To the mooooooooon", "Is Bitcoin hitting $5,000 by August?", "Is Ethereum passing $1,000 by the end of 2017?" posts are out there...
The same people have also fallen in the trap of some big investors who are selling to buy at a low price again. In fact most of the question in the last week have been like “Why Ethereum is falling?”, “Will Bitcoin collapse?”, “Is it the end of crypto?”.
Conclusions
If you want to invest, please follow these rules:
- DO NOT invest what you cannot afford to lose. If you invest your savings in crypto, you may end up with some big loss that may put you and your family in difficult.
- Read about cryptos before to put any money on it. Read about the project, read the news. Be confident about investing in something. It might be a good or a wrong investment, but at least you had your own idea.
- If you don't know much and want to invest anyway (I DO NOT RECOMMEND IT), put just an initial small amount (no more than you would spend for a couple of dinner out) and check weekly the progress, so that you can understand the hype and the drop without having the fear to lose money.
- If you have never traded, don't start with crypto. They are extremely volatile and you may end up with having no fun. Prefer a long term investment instead.
- DO NOT invest what you cannot afford to lose. If you invest your savings in crypto, you may end up with some big loss that may put you and your family in difficult.... I know I have already said that, but it is never enough.
Thanks for reading. If you liked it, please Upvote, comment and resteem..... and follow me :)
Don't worry about the recent fall, all cryptos are down, it is called a market correction and it happens to all asset markets from time to time. After prices go up high and quick lots of people start to pull out to realize their profits, other people believe that the market is overvalued and other people just get scared and run out. It is ideal to sell before the correction but if you find yourself in the middle of it it is best to hold your coins and wait for the rebound.
Exactly. A lot of the time it is just a correction. A correction means that too many people bought in and are holding usually, and the people buying are getting smaller and smaller because they already have some. So what invariably happens is that the sellers are selling too much and buyers buying too little = price correction.
Others see it and join in on the dump, then over the next week things stablize and we start to see a steady increase in pice again(assuming there is no big MTGOXhacks or crazy stuff) !!!
Ithink we are ok, buy some coins at a discount, when you think price is too high in a week or two, think about selling some. Price will go down again and the cycle will repeat. It has happened 3 times so far in the last 40+days.
Steem on!
I completely agree with you. This is what I am trying to communicate with this post. I am just sitting back and enjoying my investment. :)
Very down-to-earth and solid inormation. You're right. There's a lot of hype and "to the mooooooon" posts as of late. You sound like someone who's been investing in cryptocurrencies for a while. You've seen all the market reactions out there
I really appreciate your words, but you would be surprised to know that I started not long ago, i just like to read and study A LOT.
This post received a 1.5% upvote from @randowhale thanks to @gibiuk! For more information, click here!
yes it goes back, but i think mutch later. many People realice that there are many Problems in the System. just read some article @SVtechnik (good Background Infos to Transaction Speed and other coin tecnics)
Good info. Our market is different than others because there are alot of new people adopting to it that have never traded before. We should all try our best to work together and teach others so that we can have more control over the volatility of these coins (:
Great post, when do you think is the best time to buy some more steem ? :D will follow !
Thanks :) .
Well, Steem lost, in the last 2 weeks, almost 50%, so my point of view is "if you buy now, you are getting double Steem that you were getting 2 weeks ago...".
Although Steem is a very unclear crypto for me at the moment.
It definitely has a future, so for long term investment I suggest to keep an eye on it in the next week and catch it as soon as it start growing.
Uptoved
Thanks :)
I have checked your blog out... Some interesting stuff on there. You got a new follower ;)
To track out your typos :P
Hah! Please find them all! I will be sure to uptove that!
It's also not just crypto. Gold, platinum, and silver are on a downward trend right now too.
I don't follow the metals but thanks for the update, it always good to have a wide view
I agree. Like I always say, if you truly believe in the market as a whole, just ride the wave! Don't Panic! Upvote and followed!
Thanks @jrose1010
Hi @gibiuk I just want to have your attention for a petition about the acceptance of Bitcoin and Litecoin at Amazon, as can be seen in the link below. If we can take care of this, the crypto market will become much bigger and will be taken serious. Please take a look and share it to make this big. I know Amazon is one of the biggest companies out there but if we can collect thousands of signatures we will give a serious sign for acceptance. I if you don’t like the promotion of this petition please give me a call and I will remove it. I just want to make this big. Thanks in advance.
https://steemit.com/crypto-news/@unknowncrypto/amazon-a-big-step-for-crypto-acceptance
Oh, thanks for letting me know. I have just signed it!!