A lot have raised concerns from the sudden dip. A lot were pretty worried about their investments losing value over time. Some understood the assignment, but some, sadly, needed a little encouragement to pursue.
In every news article, trading platform, and those who predict a crypto project’s future; their commonality never changes; that is, before putting money in a token, you should first DYOR or Do Your Own Research, and a part of it is understanding how the market move, how it necessarily need to undergo market corrections, and how such market is affected by a lot of factors.
While it is understandable that one can worry about their portfolios turning red, one must understand that the big picture is what really matters, zooming out the charts and seeing that dips are normal and are experienced by every successful crypto project today. They are part and parcel of every crypto journey, and a notable one is Bitcoin itself.
Also Read: Ask the Orb: Cryptocurrencies for dummies!
Causality: Market corrections
The photo above is the current trend of the leading cryptocurrency projects by market cap in a 7-day period. All of them turned red right after Bitcoin’s sudden plunge from $69,000, liquidating roughly $2,000,000,000 worth of BTC Longs along the way. As observed, all other markets followed and experienced the dip.
This explains why PRV2 has been experiencing market corrections similar to other tokens. In a more technical term, the whole market is in extreme fear, prompting the bearing period. This is actually the best time to buy more tokens since all prices are low. Time and time again, history tells us that in every extreme dip in markets like this, we should harness it to our benefit.
While it can be understood that PRV2’s value is down, this should not be the reason the be sad; it should be the reason to rejoice as you now have a short-term period to buy more if you missed the previous surge. The market is down, and it screams for you to buy more and expect more gains in the future.
Market dips should be taken as an opportunity to expand your portfolio; it should not be the cause of your panic. As long as you do not sell your PRV2, these are simply impermanent losses that will recover in due time. The key is to hodl it in the long term to see exponential gains.
Hurdles in Hodling
Market dips cannot be taken out of the equation when we talk about cryptocurrencies. They are there to stay until the end of time unless they are stablecoins. That is why the key is hodling no matter what. We need not worry about our portfolios temporarily losing value as we can reap its gains when it recovers at the end of the day.
This goes the same with the premature selling of hodlings after a sudden surge in prices. There are instances that when the gains are already overwhelming, some prefer to sell it ASAP in fear of it going down. This should not be the case. In every regret story you can read online, their general theme is selling prematurely and wishing they could turn back time.
What you need to do is to set a high price that you are comfortable with and hodl as much as you can. Ignore the market dips and sudden temporary surges. You should focus on your goal and see to it that you follow it to maximize your gain.
PrivacySwap and the market
With the case of PrivacySwap, this is an opportunity to buy more PRV2 and PRVG before it bounces back to its actual uptrend. This is a high time to increase your hodlings more than ever at a much lower price. While waiting for the market to rebound, you can stake your PRV2s and PRVGs, or put them in our liquidity pools which offer up to 70,000% APR. Aside from that, when you have minted our limited edition NFTs, you can boost it up to 50%!
The PrivacySwap team is bending over backward to provide the PRV Army with services to help them grow their money. However, some instances are beyond their control, such as influences in market fluctuations.
While it is preferred to have a market that is continually moving upwards, this is not always the case. There will be market corrections that will happen along the way.
For four (4) years, trading cryptocurrency has taught me two things: the importance of hodling, and the buying the dip. I understand some people’s sentiment regarding their portfolios turning red; I was once like that. I have learned through experience and time that market dips are nothing but a chance to increase your hodlings and the future yield that you’ll have once the market bounces back.
One of the lessons I’ve had along the way is the realization that the journey to crypto does not happen overnight, which sets it apart from quick buck scams. Not all cryptocurrencies promise yield; that is why you must DYOR before trusting the crypto project you want to invest in.
In the case of Bitcoin, it spent years of criticism and market corrections, but it persisted. Now, it stands at the top with over 1 Billion USD as market cap. Like any other coin, it had experienced massive market corrections; but it always recovers, as you can see at the zoomed-out chart.
For every legitimate crypto project, that is always the case. The market always recovers over time. This is where the importance of DYOR lies in making sure that you can trust your crypto project.