Now is the opportunity to rebalance your portfolio
The crypto markets are becoming red again. The reason is unpredictable but it is definitely a good opportunity for long-term holders. Even traders can make use of this opportunity. Two days back too there was a dip and many cryptocurrencies fell below their regular price. If we know which crypto to choose at that time, we will be able to make some quick bucks out of this dip.
Today again is a similar opportunity. People who wish to invest can make use of this opportunity. The price of some of the coins is very good for the purchase. Some native coins are all at a decent price if the long term is in the mind. In addition, people can also consider this as an opportunity to rebalance their portfolios.
Some people might think that investing during the dip can be risky because it is sometimes like catching a falling knife. Nobody knows how far the dip can happen. Sometimes dip can continue for weeks as well as months. But some will be short-lived and the market can quickly recover back. It is all unpredictable.
Balancing the portfolio
Portfolio diversification is very important. At the same time balancing the portfolio is also very important. If our bought price is very high and the price of the coin drops very low, it is also important to purchase a little bit and average our holdings. If we just keep waiting for the coins to reach the bought price again, it can take a lot of time and in the case of some coins, they may not even reach the bought price again. I personally experienced it with XRP. I bought my XRP when the price of XRP was at its all-time high. I did not purchase it again when the price went down which is a mistake. That would have balanced my buy price.
Balancing the portfolio helps in increasing the number of coins we hold. During the market peak, we will also get the opportunity to sell for a higher price than would compensate for our investments. This way there will be a balance in our portfolio and even for some people they would have got their investment back with profit booking and all the extra that stays in the wallet is something that is additional for them. So, balancing the portfolio is very important.
Now is a good opportunity
I personally think that this is again a good opportunity to buy the dip. No wonder the market recovers back tomorrow itself. Some of my friends are trading BTC when it dips by at least 1000$ every time. But for me, the comfortable trading option is Hive only. I prefer purchasing Hive at a cheaper price and selling it when the price of Hive goes high again. The last two times even though I observed the market, I missed the opportunity. I couldn't benefit big but this time I'm not going to leave it. I bought it cheap and going to hold it for some time. I don't want to be impatient and sell them off when I see a small profit. I want to get hold of bigger bags instead. Good luck to anyone trading in this dip.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
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