How do we react to a capsizing crypto market??

dogeinvestgroup (44)in #bitcoin • 5 years ago

The insurance underwriter safely collects a monthly premium until the hurricane blows through! Once the headwinds blow in, the insurance company loses money. Just as the wary investor; casinos operate in similar fashion. They are there to make money in the longterm and because they are The House, they will make more money over time just because the odds are inherently against the gamblers.

The House knows the odds are stacked in their favor, that's why it becomes difficult over time for many traders to earn significant amounts of money in any market. Seasoned traders have learned this as well. ..

Selloffs upon Selloffs!

Bitcoin dropped today, as low as $3,659 with a market cap of $64 billion, down around more than 8% from $70 billion just yesterday. Indeed BTC markets showed increased selling pressure and with BTC dominance at 52.4% at the time of writing, alts are certainly feeling it. I managed to take a portion of profits earlier this week but yeah for the most part, my short term profits have basically vanished. I do like to think of myself as a cautious investor, however even I couldn't plan the sudden drop waking up and seeing so much red after such a healthy run with BTC holding over $4k for the first time since I could remember. After discussing with my team and doing a bit of introspection, I honestly could not let myself remain too flustered about this so I clicked straight over to CoinMarketCap again this time, with undervalued altcoins on my mind.

What are the Whales doing?

"We're probably flatlining." Leave it to the whales, there's no hope. We will come back to the whales in a moment, but for now, let's just keep them in mind.

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Panic is flattery!

Let's consider the casino again. Now, if that same casino was involved in the market, they would definitely be market makers, right? The makers make the rules and create the ebb and flow that seasoned and amateur traders alike must abide by. There cannot be an open market without makers, and they love when things go their way. Psychologically when prices are going down suddenly and abruptly let's face it we are wired to sell. "Let's dump this thing and get the heck out of here!", I thought about this for a moment. When market makers can create panic in a market and have an opportunity to capture undervalued assets and bargain prices they are overjoyed! They take advantage of simple psychological tricks to make trigger happy investors want to go ahead and sell fast because prices are dipping. Once this happens one of two things happen, the market makers get deeper pockets or as investors focusing on the value we wise up and learn how to play the game. So, don't flatter or tease a whale by selling all of your holdings for ripoff prices; they will feel like geniuses when you sell at those rates and will be looking for you to sell them more and more each time.

The World Keeps Turning!

...and Time doesn't wait. What we learned in this market if anything is how it will always continue moving as long as the world continues to spin around the sun. Just like that circular motion up in orbit around the sun, crypto and blockchain are here to stay and will most definitely be here long after we are gone. Folks, blockchain isn't going anywhere so today I was joyful when I could purchase my first shares of Steem at such bargain prices. It was only a very modest purchase, under $100 dollars worth but in my eyes, I got it for cheap. We've seen trashcoins and know enough about blockchains now to understand Steem is grossly undervalued at this point. Right now, all the eyes are on the market Top 10 coins in market cap. Projects like Steem are valuable, sustainable and flying right under the radar while no one bats an eye. I wonder what the whales just might be doing?