The volatility inherent in all cryptocurrencies is part of their appeal. In a single day, they can increase in value several times and multiply the investment enormously. But the other side of the coin is not pleasant; Just as prices suddenly rise, so can they fall. And that’s exactly what is happening now. But don’t panic! In today’s video we’re going to show you what strategies to use when prices are falling:
Bitcoin’s price has suffered badly after a series of dire news for the cryptocurrency: First, that Tesla, Elon Musk’s electric car company, has abandoned its plan to accept bitcoins as a means of payment. Second, and perhaps more importantly, the Chinese government’s ban on using cryptocurrencies from banks.
And when Bitcoin goes down, so do all cryptocurrencies. Loss of value of up to 50% Compared to a week ago, they have shaken absolutely all currencies.
As we mentioned earlier in this article, the price of cryptocurrencies fluctuates due to many factors and the news is one of the most important in determining whether it is going up or down. However, cryptocurrencies have gone through hundreds of crises since they first appeared, so it would be a stretch to believe that this is the one that will put an end to digital currencies.
In any case, whether the crisis is final or not, we are not entirely helpless before a drop in prices. You can even benefit from a market crash if you seize the moment. While the first impulse is to jump a ship, you must always act smart when your money comes down to it. So you have to do everything possible to at least minimize losses.