You have read about safeguarding your money in the cryptocurrency market but you need to recover the losses made.
One of the most important thing in cryptocurrency market is portfolio management.
Portfolio management also known as risk management is an important skill that a trader must have.
Have you woke up one day to check your wallet only to discover that your $200 has become $20?
How do you feel by that time?
Every single penny that you spent, you will have an expectation of making a profit no matter how small.
It is a pity that the cryptocurrency market is not built to be bullish all the time, there will be a bearish market as well.
How do I recover my losses in a bearish market?
Recovering your losses in a bearish market stands on two legs, either of which can be a remedy.
The best solution is to combine both and you will be happy you did.
This is not a mistake but a term in cryptocurrency which means to hold.
Some literarily define it as Hold On for Dear Life.😀😀😀
“Losses are made when you sell, any reduction in your wallet is an unrealized loss until you sell“
Read that line again.
Until you sell any particular coin, the loss that occurs as a reduction in price is unrealized.
After rain comes shine, after bearish, comes bullish.
Learn to hodl today so as to recover losses made on trades.
- Buy the dip
Not again, I am not buying anything.
Why will you even advise me to buy when I am running at loss?
That is the mindset of a newbie in the cryptocurrency market.
The dip means a sharp reduction in price which can be caused by any of these factors.
When there is a dip, many people will sell leading to a deeper dip. 😂😂😂
Is that not the end of the market?
No, there are people waiting closely and watching the retracement of a coin, so they can buy at a lower price.
When you buy the dip, you stand a chance of being in profit by the time the market moves up and reaches your previous buy price.
That seems like magic. Let’s do some easy calculations.
If you buy 10 kurecoin (krc) @ $10 each. That means you bought with $100.
After some time, the value of krc dropped to $5 each making your wallet to be $50 since you have 10 krc.
Rather than selling, you decide to buy additional 10 krc @ $5 each. That is, you bought it for $50.
So the total cost of 20 krc that you bought is $150. The 10 bought at $10 each and the 10 bought @ $5 each.
The price of krc moved up again to $8 and now you are having 20 krc, so your wallet will be $160.
Even when the price did not reach $10, you have cover up for the losses on the previous buy.
What if the price hit $10 again?
You will be in profit of $50 just by buying the dip.