Sunday, May 20, 2018

How to Avoid Bitcoin Panic Sell (And Be A Smart Investor)?

One of the biggest reasons why Bitcoin price is dropping is because the retail investors are panic selling in a large chunk.

They are the victim of Fear, Uncertainty, and Doubt (FUD). This is, in part, due to the fake news spread by mainstream media – like Arun Jaitley announced Bitcoin is illegal in India (It is NOT illegal, by the way) – and in part due to the market manipulation by the big investors.
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Avoid Bitcoin Panic Sell
January 2018 was the worst month for Bitcoin in 3 years. The cryptocurrency broke one support after another, showing no signs of a bullish run.

At such times, it’s important to have patience and trust the crypto world—trust that in the coming weeks and months, things will change for better and your decision to invest in Bitcoin would turn gold (again). But again, this is easier said than done. Panicking is a normal reaction. More so, if your hard earned money is at stake.

Did you too Bitcoin panic sell? Are you scared too of the current Bitcoin price fall? Do you want to sell your holding because you’re afraid you will lose all your money?

There are simple things you can do to bring composure to yourself and avoid Bitcoin panic selling (one of the biggest mistakes). Here are 6 of them:

1. Listen to what experts are saying

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Trust Good Bitcoin Experts ("Good" is a keyword here)
Of course, the opinions of experts are divided. While some predict a Bitcoin crash, there are plenty more who say this year Bitcoin can cross $50,000. To settle your anxiety, you’ve got to listen to these experts. Know what they are saying—and understand why they are saying that.

Read: Bitcoin Price Prediction 2018 – What Experts Are Saying?

2. Set a definite stop-loss position

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Set Stop-Loss Position
One of the first things programs of Bitcoin trading for beginners teach is to set a stop-loss position. It is basically a set-price beyond which you cannot afford to lose your money. So if the price falls below this point, you simply sell your holding and go home.

What should be your stop-loss position depends on how much you have invested, what is the current price trend, what marginal profit you want to make or whether you’re fine with no profit.

When you mark out this line beyond which lies danger, you will feel much at ease and in control for as long as the price is above this position. You wouldn’t care much is the price if fluctuating much. You would be very sure, even in worst case scenario, that your stop-loss position would save your money.

Also Read: Bitcoin Trading For Beginners- 7 Critical Mistakes To Avoid

3. Stop checking the price every hour

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Stop checking Bitcoin price every hour
Unlike other traditional financial markets, you can check Bitcoin price movement round the clock. The market functions 24/7. This is an advantage—as well as a curse.

Some people check Bitcoin price every hour. And this does nothing but plays with their mind. Because in this market, a dip of $500 in a matter of minutes isn’t something uncommon. And when you keep on tracking the price, such abrupt market dips are bound to trigger your emotions and push you to Bitcoin panic sell.

So if you check Bitcoin price all the damn time, you should stop now. Keep away your phone, shut down those alerts, and focus your energy on something else. 

Also Read: How To Buy Bitcoin in India

4. Don’t blindly trust the mainstream media

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Do You Trust Mainstream Media Blindly
Top media websites often publish misleading news in regards of Cryptocurrencies. 

Is Bitcoin crashing… this is the end of Bitcoin… Investors will lose millions… Bitcoin is dead… Bitcoin is banned…. The government has made Bitcoin Illegal… These are some sensational headlines that you will always see them publish. More often than not, such reports are fake and just a clickbait that does what they want to do—increase their ad revenue.

So stop blindly trusting the mainstream media. Use your own brain, analyze the information they are providing, cross-check with different channels and then decide whether to believe that news or not.

5. Go on a Bitcoin sabbatical

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Take a break from Bitcoin
Take a break from worrying about the trends, moving average, and the price movements. Seriously, go on a sabbatical. Being in this game will only mess up with your head. You need to get away from this and just relax. Be a smart holder.

Just set your selling order to your stop-loss position, set few alerts when the price is approaching this position—and then leave. Take a week or even a month off. If things are going bad, you will automatically be alerted and your holding will be sold right when the price dips below your stop-loss position.

Also Read: How to transfer Bitcoin from Zebpay to Koinex

6. Sign up to Bitcoin India Wiki

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Sign Up To Bitcoin India Wiki
Over 820+ Bitcoin’ers have signed up for our newsletters already—have you? Bitcoin India Wiki is a leading Bitcoin India Blog. We regularly push emails to our subscribers regarding Bitcoin latest news, trading tips, current trends and everything in between. 

So join over 820 subscribers— Subscribe to Bitcoin India Wiki (<- click). In our regular emails, we will let you know if things are going bad and as a new trader, what you should do then and how to maximize your returns.

These are 6 simple ways how you can beat the urge of panic selling your Bitcoin when things are looking bad. Remember, the bearish market can turn into bullish in just a matter of a day. You just need to have some patience and belief in the Bitcoin market.

Do you feel like selling your Bitcoin and leave the market sometime?

Start and be a part of meaningful conversations. Be a part of our Bitcoin India Forum.

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