After hitting an all-time high of $53,276 Canadian on Friday, the price of
Bitcoin
has done nothing but plummet.
meaning that the market capitalization of digital gold has seen more than $254 billion shaved off of it. The good news for investors waiting to buy the dip is that the current price is now sitting at $39,629 at the time of this writing.
Major Crash or Healthy Correction?
Investors just getting into Bitcoin now thanks to the fear of missing out are likely to label what’s happening as a major crash. After all, losing 26% of your value in equities or any traditional financial asset class might have you feeling like you just got duped by Wall Street.
Cryptocurrency however is not like Wall Street. It’s important to keep in mind that when the coronavirus pandemic grabbed hold of the world back in March of last year, a Bitcoin could have been had for less than $7,500 Canadian. Holding Bitcoin at that price now means you’re sitting on a more than 500% profit.
It’s important during times like this to keep things in perspective and avoid panicking. Remember that Bitcoin was sitting at just $14,000 Canadian at the beginning of October.
Still, there is a chance we are on the verge of a crash. What should you do about it?
Take Profits in the Short Term, or Hold for the Long Term
There are two reasons it’s not appropriate to give you financial advice. Firstly, nobody can predict what’s going to happen to the market tomorrow with 100% accuracy. Secondly, nobody knows your level of risk tolerance or your financial situation better than you.
If you only got into Bitcoin a few months ago, you’d be smart to take some profit. If you’re willing to hold some for the long run or you’ve already been holding for a long time, you likely want to keep some of your capital exposed to crypto because you obviously believe it will be a big part of the future.
One of the best ways to enter and exit the market at a moment’s notice is to trade for stablecoins like the U.S. Dollar Tether token or Canada’s own QCAD token. You can trade for both of those at Netcoins. Just register for a free account, transfer your crypto over to your
wallet and make the trade from there. It’s that simple.
Remember that cryptocurrency markets can be quite a wild ride. Keep some for the long term and hang onto your hat in the meanwhile.
If you’re looking to purchase Bitcoin or other cryptocurrencies,
buy Bitcoin with Netcoins
. Netcoins is a fully regulated crypto trading platform in Canada.
Written by: Jack Choros
Writer, content marketing at Netcoins.
The information provided in the blog posts on this platform is for educational purposes only. It is not intended to be financial advice or a recommendation to buy, sell, or hold any cryptocurrency. Always do your own research and consult with a professional financial advisor before making any investment decisions. Cryptocurrency investments carry a high degree of risk, including the risk of total loss. The blog posts on this platform are not investment advice and do not guarantee any returns. Any action you take based on the information on our platform is strictly at your own risk. The content of our blog posts reflects the authors’ opinions based on their personal experiences and research. However, the rapidly changing and volatile nature of the cryptocurrency market means that the information and opinions presented may quickly become outdated or irrelevant. Always verify the current state of the market before making any decisions.
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