Investing in crypto during a down market

The recent downtrend in the crypto market has many many people nervous. But rightfully so, since almost every crypto has lost a significant amount of value.

But if we follow basic investing rules, then we will have nothing to worry about. Now if you are in this to make 1 million dollars over night , you will be sadly mistaken. The reason I say this, is that no one that was a crypto millionaire or billionaire was so overnight. They held their investments until it paid off. Also if you follow dollar averaging you can recover most losses. Unless of course you invested in a bad project.

One of the best advice on trading stock that I have heard was just to let it sit don't always keep your eye on the market, it will drive you crazy if you do; aka don't be a day trader. Most people don't really make that much day trading unless they trade in huge volumes. Same goes for crypto.

This is also a good time to diversify your portfolio. An experienced investor should choose stocks on a long-term basis and should have faith on his/her investments. Well same thing applies to cryptos. Now sure you may lose some money, and some cryptos that you hold will go to zero. The risk is there for stocks as well. But with a well researched portfolio you should be able to weather any storm.

Never invest what you can not afford to lose. This goes for anything, houses, stocks, land, crypto ect. Never invest what you can not afford to lose. If loosing 500 means you may not get a meal that month, you can not afford to invest. Now there are ways to get crpyto without spending money; if you have a good graphics card.

Make sure you choose the right news to focus on. There is a lot of bad news that comes up quick in the concurrency world. But don't over react, just hold on and see how it plays out. In most cases so far everything turns out to be okay and everything rebounds. (Unless you invested in a bad project aka Bitconnect, but that is another story. And I know there are more out there)

Learn from your mistakes and move on. You will make many mistakes, especially in a new realm such as crypto. Learn from it and move on.

Invest in cryptos you truly believe in and have the white papers to back up all their claims. This one should be pretty obvious. As long as you believe in the project and they have a way of proving themselves, white paper, road map, major partnerships ect then go for it. Just dont spend all your money in one place

Look at the patterns. If you look at some charts of cryptos over the last year you will see dips then huge rebounds.

(image from http://livecryptochart.com/)

Just don't panic. Whatever you do invest with knowledge and no emotion. You should never ever invest with emotions, and that goes for anything. If emotions over take the facts you could lose out on some good gains.