The cryptocurrency industry has already created a huge number of wealthy people in a short period of its existence. This is especially true for early investors who joined the digital economy in the early years of its existence. But this does not mean that it is no longer possible to make money from cryptocurrency, and one of the most common methods for making a profit is to buy sell cryptocurrency in the moments of falling and rising. In this article, we will answer the question of whether it is worth purchasing digital coins during their drop or if it is too dangerous.
Trade Cryptocurrency When the Market is Moving Downward?
The psychology of the market is such that the bulk of its participants blindly follows the already-established trends. That is, if the price starts to fall, most people are afraid of losing money and are in a hurry to sell their digital assets. And vice versa, during the crypto bull market the majority do not want to miss the opportunity and try to buy as much as possible.
At first glance, everything is logical; why buy what is falling or sell what is growing? But in reality, following such a strategy, as a rule, people lose their money. In such a complex business as trade cryptocurrency, there is no place for emotions.
Experienced traders and investors know to do the opposite. The golden rule is: “buy when everyone is selling, sell when everyone is buying”. When everyone starts to engage in cryptocurrencies trading, that is a reason for selling digital assets. Conversely, when the news background and everyone around is disappointed in investing in cryptocurrencies, this is the best time to buy.
For example, in November 2022, unexpectedly for everyone, the popular FTX exchange went bankrupt, and because of this, the BTC rate fell below $16,000. Eminent publications began to write about the industry’s collapse and the institutional investors’ disappointment. Most people sell when they take a loss, but this is the perfect time to buy crypto.
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