Why I Do Nothing During BounceBacks || My Crypto Strategy For This Moment
We've had major drops in the cryptocurrency market in the past few weeks. And those with extra stablecoins or fiat lying around have happily used this opportunity to increase their stack. I am one of those people. I've also been able to steadily buy more HIVE while the price decreases. Now it's time to wait during the long game again, until the market heads to all time highs. The game is simple, if you understand the rules. What's very important is that you act rational based on these rules, and not emotionally based on events.
One of these events that can be dangerous for those that are led by emotions are bouncebacks. Right now where seeing that with a few cryptocurrencies, the rebound. Even HIVE has bounced back a bit from 40 cents to 50 cents.
When looking at this specific event, I always tend to just do nothing and wait even more. A bounce back can mean two things. Either the market is going back up, or it is the so-called infamous "bulltrap" where it seems like the market is going up, but meanwhile it's just a small correction before the drop continues.
I find that it's better to not act in the timeframe of the rebound. Unless you're really good with technical analysis and predictions, or if the news and rumors point in the right direction. If it drops more, then I'll buy more, and if it goes up, then I will just hold on tight and brace myself for the next rocket upwards.
This may not be the best strategy. It may not be what works for others. But it works for me. Based on the past 5 years in crypto and blockchain, I feel comfortable with these actions, or no actions in the case of bouncebacks. In the end that's what matters when trading and/or gambling. Always put in what you're comfortable with, and what you are prepared to lose.
The market is getting exciting. As well as the Hive ecosystem. I wonder what the future holds. Whatever it is, I bet it's awesome. What is your strategy right now?
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