Bitcoin is going down or dropping. Do not panic! You can do it this way.
Bitcoin is an asset with a very volatile price if we compare it to other assets. Stocks, property, gold, and others do not have price fluctuations as wildly as Bitcoin.
Indeed, Bitcoin is an investment asset that has high risk and high gain properties. Even though your profit is very optimal, the price drop is also deep.
In the last few days or the end of February 2021, Bitcoin has experienced a correction. The price has dropped to IDR 660 million from IDR 851 million. In fact, other crypto assets have experienced the same decline.
Perhaps, many of you have suffered losses. However, you don’t need to panic.
Before carrying out the steps, you need to relax for a moment while eliminating panic and emotions.
What to do when the price of bitcoin and other crypto assets is down. There are several trading strategies that you need to apply to overcome the ups and downs of Bitcoin.
1. Bitcoin is drops, immediately find the cause info
The first step when Bitcoin goes down is you have to find out what caused it. This is also a fundamental analysis step.
You can find information on accurate media discussing cryptocurrency and blockchain. You shouldn’t be trapped by cursory information and have no basis or strong reason for bitcoin dropping.
It is necessary to ensure that the decline in crypto assets occurs over a long period of time. Apart from that, it also took a strong reason so that the price really went down.
Because the decline in Bitcoin is common. If it’s only for a while and the reasons aren’t too strong, you don’t need to panic. Because later Bitcoin can still go up again.
2. Bitcoin is drops, Take Profit Immediately
The next step when Bitcoin drops is to immediately take profit (TP) or take profits. Immediately do a sell order.
You don’t have to regret that your profits weren’t as high as yesterday. You just need to be grateful that you can still get benefits, especially when prices are down.
No need to regret if you don’t have time to TP when the price is high. Remember the saying of the saying, “if it wasn’t sustenance, it wouldn’t go anywhere”.
3. Bitcoin is drops, you can make a cut loss so you don’t lose too much
When Bitcoin goes down, you haven’t made a profit yet. You can hold or hold. However, to prevent a sharper drop, you better cut losses.
Make sure you really have planned at what price you will cut loss. You need to do this immediately if your market and fundamental analysis concludes that bitcoin price is really going down again.
Don’t be afraid to lose. After all, this step is done so that your losses are not worse.
4. Return on investment if the price is supported
The next step is that you have to prepare to return to trade again. When is the right time to re-invest?
Every cloud has a silver lining. You can return to trading when the price seems to have risen from its lowest price. This term is usually called support.
Technical analysis is required at this step. You can confirm when a support condition occurs after checking the chart.
5. Always Use a Trading Plan
The final step is that you need to return to trading according to the trading plan. Many beginner traders don’t have a plan or plan. Thus, the profit is not optimal or even a loss.
A trading plan is a plan prepared from scratch by a trader before trading. So, the trading plan is useful as a reference or steps that you carry out when trading.
You can arrange a trading plan by determining from the start you have to determine how much your profit is and make TP. In addition, you also need to plan for cut losses when prices are down.
Also Read: Why Do Bitcoin Prices Go Up and Down Like a Roller Coaster?
So, those are the steps you need to take when the price of Bitcoin and other crypto assets is falling.
Watch video tutorials, tips and more on Indodax.Academy and Indodax’s official social media. You can also watch other interesting information through articles on Indodax Academy.
Also make sure you don’t miss all the other interesting information.