Why I dont Panick when Some Crypto Dips(And You Shouldn’t Either)

Whenever prices are down, people become nervous, and it's very normal for them to start selling off fast. It takes a person who understands the way markets work to not get scared away by the fear of loosing it all. Those people see dips as a big opportunity, and actually get excited while the rest of the world is fearful.

To borrow the words of Waren Buffet: Be greedy when others are fearful and and fearful when others are greedy.

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Let me explain.

Dips are a gift, especially when it comes to altcoins in the crypto sphere. I’m not just talking about ethereum, BNB or even Sol, I mean the smaller coins, the ones that still have room to grow. When I look at a coin, I ask myself these questions as a way to analyze it's potential to see if it's a good investment:

1. does it solve a real problem?
2. Is the team active?
3. Is there a strong community behind it?

Only thing that gives value to a thing is if it's useful to humanity. Bitcoin's utility is simply one, "a store of value" and a hedge against inflation. People noticed how easy it is for governments to just print cash, and realize that their hard earned cash can disappear by just cutting some papers and making photo copies of them at will. You can't do that to Bitcoin, and with some cryptocurrencies. This is why I dont do meme coins, because it's more like fiat currency, no wait even worse, because this can be regulated by a little teenager in his basement. Anyway what I'm trying to say is Bitcoin solves an issue so it's to be considered. If the altcoin you hold solves a real world problem, then that's it's value and reason why people will hold it.

When it comes to an active team, well I cant say much about that with Bitcoin because it only requires mining, buying and HODL. If there's something about it I don't know , you can drop it down below and educate me. But there are dozens of coins out there with a very serious team improving the project. I noticed Hive Blockchain and the Inleo front end so doing something like that so it's something I'm starting to consider.

For Community, we see it with Bitcoin, it's on the grandest stage of all. All eyes on it and there's a saying that where attention goes that's where money goes. If people love it, talk about it and try to innovate around it, then it's a coin with great potential. Remember, it's humans that gives value to anything, so if their attention is on it, then it will rise.

Consider the coins in your portfolio that checks these boxes I have talked about and HODL the heck out of it. I won't be able to tell when it will pump to the moon, but I can with confidence "predict 99%" that such coins will do well regardless. Unless something happens for the coin to lose one of these 3 qualities of a good coin.

Let’s not regret missing it.

This is just my thoughts and not financial advice. Always dyor (do you own research).
Adios

Posted Using INLEO