Menu Close

What to do when correction hits, especially in crypto?

winter is coming to the markets

I havent posted in a while, because there wasn’t much to say among all the uncertainty because of the whole Covid virus situation.

…but!

I still wanted to give you some thoughts to reflect upon if you are one of many who have invested in crypto and now don’t know what to, because you are inexperienced or you made a move too late (put your money in the middle or the top of this year’s current  bull run).

Disclaimer: I am still bulish on the metaverse and gaming crypto for the long haul as there is plenty of positive indicators around, but as mentioned above in these uncertain times it is hard to give a valid prediction where the market will go in the short run, because whatever I would say, it would be a mere guess as there are too many variables upon us to make a valid assumption.

Here are some valid proponents – articles about global overall crypto adoption/acceptance and how important people and companies see the metaverse and crypto in the upcoming years.

It might be bears turn, but bulls are still close!!

So these are some articles and links from around the world with very bullish overall perspective to keep your thoughts on the positive side of things:

  1. Microstrategy Buys More Bitcoin, Now Holds 122,478 BTC – They are a company that has been around for more then 30 years, but believe in innovation as you can read.
  2. Goldman Sachs CEO David Solomon Believes Blockchain Is More Important Than Bitcoin – this article gives you some insight that even though Bitcoin is the first crypto coin made, it’s not just about it, but the whole concept that it brings to the table for many different applications down the line.
  3. CFTC Commissioner Opposes Regulation by Enforcement, Says Crypto Needs Clearer Rules – Even the CFTC (Commodity Futures Trading Commission) believes that crypto needs rules instad of regulatory enforcement, which translated means, crypto is being considered even on the governmental tables. And this is not the only such article about govenmental adoption, just google about it or search on the site/s I link for more information.
  4. Billionaire Barry Sternlicht Discusses Bitcoin Price Rising to $1 Million – If billionaires are bullish about crypto as many of them even haven’t entered the crypto world up until recently, then you gotta realize alot of money is being poured or will get poured into this new technology. When more big money starts going in, it’s going to be like an avalanche. Rarely anyone wants to get left behind when something shows promise and innovation as crypto does. 
  5. Pepsi-Cola Celebrates Birth Year With 1,893 Generative NFTs – You might have heard about Pepsi? Well, as I mentioned above, when big money senses something is good and here to stay…there you go Pepsi with NFTs. If you were wondering…Coca-cola is there already too:
  6. Coca-cola nft auction fetches more than 575000$ – Posted directly on their own website. You don’t post on your brand’s website information about stuff you don’t go proud about, which again brings us to the same point over and over again. Big money likes crypto and the new NFTs concept which slowly but surely will bring more big companies and institutional money into the mix which makes crypto very prosperous on the long term.
  7. Amex, Visa, Citi, Paypal Invest in Crypto Transaction Monitoring – Even the big money companies are already into it. Yes, big credit card companies are onto crypto as well since for example Square which has recently announced it will rebrand to Block which hints onto blockchain among other things that they do, has made alot of it’s income via Bitcoin:
  8. Square generated $1.82 billion of bitcoin revenue in the quarter and $42 million of gross profit, up 115% and 29% year over year – Need I say more? If a company who already was doing fine ventured into crypto and made this much money in 1 quarter with it’s app in Bitcoin…
  9. Ark Invest CEO Cathie Wood Says Metaverse Will Be Multitrillion-Dollar Market – Going to be honest on this one…don’t know much about Cathie, but here name has been popping out lately wherever you read about big stock gains, therefore she is someone who clearly knows what she is doing. She manages Ark invest which in turn manages roughly 50B$ of assets and some of that money is likely going and probably already is in crypto as well.
  10. Ubisoft Chooses Tezos Blockchain to Launch NFT Platform for AAA Games – If you play games or invest into stocks, you likely heard of Ubisoft. This is a 35 years old gaming company which just recently announced to partner up with the Tezos Blockchain to venture into crypto and NFTS.

So is this it?

Is this all I got, you may ask?

No, quite the opposite.

This is just a fraction of positive and bulish overall news as I don’t think I need to go too deep in order to give you some good vibes of what is happening and what will once things normalize a bit.

As mentioned, if you need more information, browse those websites, google things up and double check if you are unsure on what I posted is true or relyable.

Don't panic, keep your focus, follow a plan and you will be fine

Now, if you followed my plan from my first posted article on this blog…or a similar plan, then I hope you didn’t quit your job just yet to live from your crypto profits.

What I advise and have done myself of course as you may have red in my article, is that you should not quit your job until your profits can sustain you…possibly passively.

What you must do if you haven’t done yet, is your math of expenses for at least one year and calculate how much money would you need to survive for one year (with some buffer for unforseen upcomings).

When you do that, make sure your 1 year expenses are only 10% or less of your total capital (money you have available for investing) as that is how much money you should have to safely quit your job and be able to endure a potential 1 year bear market.

Why do I say that?

Well, if you red my article about how to become financially independent or any other articles for that matter, you will understand that my strive (and hopefully yours too) is to get to a point where your money and assets pay for your living expenses.

So in order to get there, you don’t want to be “eating” too much into your profits or your main capital fot that matter as that is how you fail on this journey.

In ideal times and circumstances this dip will last a month or 2 perhapse, but we currently live in uncertain times, so it’s better to plan for the worst and be prepared for the best if it comes.

Back to my 10% or less for a year of living.

With being able to allocate just 10% or less of your capital for your 1 year living expenses, you set up yourself for success, as 90% of your money will still be in the market invested, waiting for the next bull run.

For those of you who are smarter and more experienced investors who took profits near the top, well I probably don’t need to teach you or recommend you anything as you probably welcome any dips as they are opportunities for you (and you can probably teach me a thing or 2 as well).

If you are not amongst those or just started investing in crypto, calm down and take a breath.

If you have a job don’t just quit it yet unless you can afford to live on just up to 10% of your capital or have invested in a good asset or staked a crypto like Axie infinity and are able to sustain yourself from those gains alone in order to weather the bad (bear) market.

In case you already quit your job prematurely thinking the world is your oister while watching your gains during the bull run, don’t be too proud.

…actually swallow your pride and go back to a 24/7 job if you see you will be “eating too much” into your investment capital otherwise.

Once “your math improves” and your profits can sustain your ordinary lifestyle (whatever that may be for you as it is different for each and everyone of us), then feel free to quit that job again if that is your end goal.

Don't look at the charts, period!

Here is one final thing I want to mention and you guessed it by the title which says DO NOT LOOK AT THE CHARTS, except if you have full pockets and want to buy the dip.

No, really…

Looking at the charts while you are invested in the market and unless you want to buy or cut your losses and sell, don’t be looking at the frigin charts!

Why so?

Well, it is in human nature, lets call it a survival trigger that when you see danger (in this case your investment going down in value), your body automatically reacts the same way as if you would have encountered a tiger or a lion in the wilds.

You freak out, you get paranoid and don’t know what to do and likely just want to cut your losses and run as you would have if you saw one of those mighty creatures in the wild.

don't stare at the charts

Yeah, it may sound funny, but that is the pure truth and I am sure if I went to search for it, I’d likely find some articles that prove my thesis about this, but I am guessing you feel the same way deep down after you see those charts and everything is bloody red, hehe.

In any case, given what I said, those emotions are really not good for inteligent decision making, especially if you linger longer in front of the charts (imagine standing infront of a lion for a longer period, how do you think that would make you feel?) as your mind will start playing weird scenarios and you will likely end up making the worst possible decision or a sequence of them.

So, my suggestion..?

Don’t stand in front of the charts during these times, instead go read more news about what is going on in the crypto world, stay informed as that will likely give you a better idea how to act and make the right decision, whether that is to move out of your postions or to HODL.

Just be smart about it and if you are in it for the long haul, don’t worry too much, with time things will straighten up and become clearer which path we are headed and what is the right move to be made.

Concusion

Lets do a usual recap and the main points from this article:

1.Crypto is here to stay, it’s not a 1 day fly which you can tell by how many big companies and rich and powerfull individuals are diving into it (heck even some governments are in – El salvador buy’s the dip).

2.People are buying metaverse properties in some of the at the time of writting bigger capped crypto metaverse projects for big moneyz.

3.Stay focused and have a plan as without it you are just gambling and hoping things go your way. Long term is your friend!

4.Don’t stare at charts as that will just prompt you to do things you will likely regret down the line.

What you must do during these times if you are a low cap or average investor like me, is to keep your calm and make a solid plan on how to wheather this storm, as there is always a shiny sun after it 😉 .

Don’t complicate too much, just try to follow the pointers I mentioned in this article and you will likely be fine on the long run.

If you liked the article, share it and smash the like button.

Want to be notified when I post more articles..? 

Subscribe to my newsletter on the right or follow me on my social media: LFM InstagramLFM PinterestLFM Facebook to get a notification when I post more about topics you might like.

LATEST POSTS