Don’t let the crypto bears panic you
From Tama Churchouse, Editor, Crypto Capital:
Since the recent correction in the crypto market, a fairly consistent slew of negative news has come out about the space.
We’re seeing a lot of people say, “I told you so!”
We’re also seeing the usual round of, “bitcoin’s finished, the crypto market’s dead,” and so on and so forth.
Now, if you’re relatively new to this space and this is your first experience with a substantial crypto drawdown, then you might be alarmed.
But don’t panic
As I’ve been saying for a while, this was expected.
December and early January were just crazy in terms of the ramp ups.
Between the end of November and early January, the overall crypto market rose at an unsustainable pace, from around $240 billion to over $800 billion in total market value in a matter of weeks.
So while the correction has been painful, it was what the market needed.
And it’s important to understand that this is not the first correction in crypto.
If you’ve been around in this space for a while, you’ll have seen big pullbacks of 30%, 40%, 50% and higher. It happens pretty consistently, and it’s to be expected in a market which, as I’ve continued to say, is the most volatile asset class on Earth.
But every single time we see big corrections, the bears come out of hibernation.
I won’t say to ignore them completely – I’m always looking for reasoned and rational bearish voices on crypto – but make sure you really parse what people say for the finer details because everyone in this space has their own agenda.
Everyone, and especially the people who have drawn a line in the sand early on and have been very negative on the crypto space all the way back from when it was $1,000, will still be harking on the same perma-bearish news.
So keep your head and stay calm.
And as always, never invest more than you can afford to lose
That means never borrow money to buy bitcoin… or mortgage your house… or take out debt… or other insanities like that.
If you’re a beginner, you shouldn’t be investing any more than 1% of your investible portfolio into cryptos.
If you’re more advanced, more bullish and more familiar with this space, up to 5% is acceptable.
Anything beyond that, and I think you might be wrestling with a few sleepless nights from time to time.
Crux note: While many traders are bearish after the recent crypto correction, Tama Churchouse – the man with the foresight to buy bitcoin when it traded at $115 – remains incredibly bullish.
He now believes the recent volatility could be your second chance at life-changing gains in the crypto market… like a 400% payday if bitcoin reaches its predicted $50,000 price tag.
For more details on this prediction – along with Tama’s top 12 cryptos today – click here.