Whale Trap: The Importance of Patience and Flexibility

The Bear Market is a Test of Patience

It’s been months since the bear market started, and although the market had stabilized and somewhat recovered; we’re still far from seeing its end.

That being the case, the exercise of patience is necessary.

Indeed, patience, as the bear market is the greatest test of patience not only in the crypto-market but everything monetary-related.

This means no panic selling (unless necessary), sudden investment shift, no spreading FUD to force other investors to sell, no succumbing to pressure and so on.

I’m aware that this is easily said than done and even I sometimes fall for FUD and sell some assets in panic. Of course this happen when I was new to the crypto-space but as I accumulate experience, and experienced several bear markets, I learned to be patient and endure.

That said I’m far from being a veteran investor, and definitely still far away from being an expert so take what I’ve written in this article with a grain of salt, if you must. Still, there’s no harm in learning from other people’s experience as it might serve you in your future endeavor.

For example, you could learn from their mistakes so as to avoid making the same mistakes in the future.

Anyway, I’ll stop here and return to the main topic.

Don’t Fall For the Traps!

So like I said previously, the bear market is the ultimate test of patience for investors. It’s during these times that many investors lose money from their investments. There were many reasons why this was so but was mostly due to panic selling.

Panic-selling can be said the downfall of many investors in both the crypto-market and the stock market during the bear markets. And in my earlier years in the crypto-market, I too often fall victim to this trap.

Indeed, bear market + panic selling is the pitfall that many investors fall into.

The bear market starts due to various reasons like whales and/or hedge funds selling a large percentage of their assets thus affecting prices; investors panicking after seeing the price of said assets plummeting thus lower the prices even further; only for whales and hedge funds to sweep up the market by buying the affected assets at bargain prices.

Rinse and repeat.

Yeah, that’s basically how the market works. Other factors affect prices too like bans and regulations but most of the time it’s the whales that sets the prices.

To avoid being the unwilling victims of this game of whales, it’s important to temper one’s patience, and not fall for the traps that they’ve set.

That said not falling for the traps is a difficult endeavor in and of itself, after all, there might be factors that could affect one’s decision even if one have all the patience in the world. In those instances, the best one could do was to minimize ones losses. As to how one does that depends on the person himself. Just make sure the losses are something you could accept.

Don’t Just be Patient be Flexible

I’ve been going on and on of the advantages of being patient and hodl(ing) but if there’s another virtue that an investor should hold then its flexibility.

Some would argue that flexibility is more important than patience, though in my opinion, that depend from person to person.

That said no one’s stopping you from being flexible and patience is there?

Heck, I say the more the better. It’s the crypto-market after all and you’ll need all the help that you could get. Accumulate as much virtue as you like if you think they could help you.

Anyway, although I keep iterating the value of being patience, being flexible could also do wonders in protecting your investment.

It’s no secret that many crypto-based projects have failed due to the long crypto-winter, and when such a situation arises, the cryptocurrency you’re investing in was declining at an alarming rate; the only sane thing to do was to pull out your investment as fast as possible.

What I mean by this was not be too stubborn and hodl because you think the coin would still recover as more often than not, such a coin was doomed to fail. Remember the UST-LUNA debacle?

It’s better to lose some money than to lose it all.

After all, not every cryptocurrency are as hardy and as the established as the likes of BTC, BCH, ETH, etc.

…And with how the market works, being sensitive to change and flexible enough to move in a moment’s notice might just save your investment just as it saved a few of mine.

So yeah, try to cultivate that flexibility as much as possible. But as I said previously, it all depends on you.

That’s all I have for now.

Thank you!

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Disclaimer: This article was checked for plagiarism using the online tool; plagiarism detector, and was proven to be 100% original.

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