There are accidents to the markets what are waves to the ocean.
Bitcoin crashes hurt.
But they don’t have to.
Although they are an exciting and controversial media topic, they need not be a constant cause for concern.
Here are three reasons why.
Volatility is a necessary evil
Guess how many times the Bitcoin crash in its history?
1? 4? 8?
Some of them were pretty horrific. For example, in 2013, Bitcoin lost 87 percent of its value in three days.
Don’t get me wrong; volatility scary, and usually intimidating many people. But the smart money which is not affected by it.
Smart money knows you need volatility to get price appreciation.
And smart money also knows that innovation almost always leads to interchangeability. And Bitcoin, as one of the best innovations of the century, thrives on it.
2. This will also pass
Bitcoin’s behavior during its 12-year history emphasizes one point:
Accidents never last.
Sometimes the market improves with lightning speed. At other times, reversing an accident takes years.
Take the 2017 crash, for example. It took more than three years for Bitcoin to return to its peak levels.
Bitcoin is always improving.
But, make no mistake. Accidents are part of the game, and they are unpredictable. The only reliable way to avoid being affected by them is to stay out of the Bitcoin altogether.
Yet there is a better way to deal with accidents.
Invest in the long term and ignore the short term price movements.
As legendary investor Warren Buffett put it, “If you don’t consider owning an investment for 10 years, don’t even think about owning it for 10 minutes.”
3. Accidents create opportunity
Bitcoin price crashes are nothing exceptional. And the smart money is turning up for their event.
So let the media and politicians argue for or against them. It’s your job keep your hands steady and accumulate more Bitcoin after each dip.
It is clear from those recent years buying on dips has been an easy way to boost your profit.
Big dips lead to high returns and vice versa.
Accidents are like waves
This is what is important to understand.
Markets crash what the waves are to the ocean.
And just like the ocean, the market is a dangerous and even deadly place for those who aren’t ready.
But for someone who knows how to ride the waves, the bigger the wave, the better.
The point of this comparison is to show that Bitcoin crashes are natural phenomena.
You need to be ready to ride it.
Create your free account to unlock your personal reading experience.