With the market going down recently, many people lost money. Some lost $100,000 or more. I recently heard that The Moon lost over $100,000,000 of his net worth.
But there is one secret that many people fail to do and they actually do lose money in their cryptocurrency investment.
On paper, you lost some of your cryptocurrency wealth. If you sold, then you really lost it. There is no way around it. You gave in and sold when there was a lot of doom and gloom in the market.
The Bitcoin market has its dips, corrections, and move from the bull to a bear market in seconds. You need to get used to the dramatic moves in the market.
If you can’t handle this, then you should not invest in the cryptocurrency market at all.
The cryptocurrency market has dipped every few months. Bitcoin will tease you as it rises before it makes a sudden drop. Then cryptocurrency pumpers will get you excited and proclaim Bitcoin will reach six figures in no time.
And you see that we have yet to come close.
As you can see below, corrections have happened since Bitcoin was created. It’s just part of the game.
Some investors and traders take their profits after they have made a certain amount.
If you sell, your cryptocurrency, you could easily lose money unless you are using it for a tax write off which I discussed here.
Investing in cryptocurrencies is a long game. You need to be patient and prepared to let the dynamics of the cycle run while you continue to dollar cost average into the market.
Here is a clip of The Moon where he shares his view to HODL cryptocurrencies.
Have you ever sold and later regretted it?
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.