Cryptocurrency Investing For Dummies

Chapter 23

Ten Possible Moves When Your Crypto Portfolio Is Down

IN THIS CHAPTER

Reconsidering your investment approach or amount

Surveying what’s going on behind the scenes

Whether you’re a short-term trader or a long-term investor, at times you find your crypto portfolio in the red zone with one or more of your holdings moving against you. Before you know it, you can find yourself in a FUD situation (crypto talk for fear, uncertainty, and doubt), which can become incredibly frustrating and can contribute to your making an emotional decision rather than executing a well-thought-out strategy. This chapter covers ten potential next steps when the market isn’t on your side.

Do Nothing

In most cases, patience is a profitable virtue. If you got into a specific position after doing a thorough analysis from all points of the Invest Diva Diamond Analysis, or IDDA (see Chapter 9), chances are the current dip in the market is temporary. If you give it time, you may find yourself in positive territory again. Even the toughest markets find their way back up again if you wait long enough.

Of course, the cryptocurrency market is very new and hasn’t shown enough evidence to prove that it follows the sentiment of other markets like the stock market. However, because most investors categorize ...