When you enter the crypto market for the sake of long-term investing, you have the simple goal to make money through an n-year plan, right ? not only you, everyone I suppose, but in each type of market someone wins, someone loses. Therefore, don’t worry about some minor market fluctuations. Yet I know how you feel when your precious crypto is down while waiting for a long time for some return. Therefore, if the crypto market is correcting or more specifically your precious is correcting, here are a few things to consider :
Do Nothing. Don’t take it for a joke, in most cases, it is the best option and a profitable virtue. If your precious worth it, the dip will be temporary, while the bounce will be fast, are you fast enough to catch up with it? And here is good stuff, you don’t spend your time while your psychology isn’t being affected that much.
Look at the big picture. From a technical side of view, a longer time frame helps you get a better idea about the market trend. For example, maybe we are on an uptrend, but for some reason correction happens. Yet, this correction may be a healthy one, plus it is an opportunity to buy more.
From a fundamental side of view, reconsider your choice of investing in this crypto. Is its technology or its community or its partnerships really contribute to its long-term growth? Maybe there are fundamental reasons that your crypto is down. Perhaps your crypto is not backed up anymore by giant financial corporations.
But, as we have said before, diversification will save the day. Detect these top-performed cryptos, spread your funds accordingly, while risk will follow this path.
Short term traders are fans of stop-losses so as to cut losses if their assets fall. But for the long term, it is not recommended, chances are, you will not be able to catch up with the bounce after fall. Instead, successful long-term investors have considered these corrections through risk management beforehand. Yet, if you have invested in a scam, a stop-loss may be beneficial.