Table of Contents
Richard Donchian said, “Trading is trading, and the name of the game is increasing your wealth. A trader’s job description is stunningly simple: Don’t lose money.” As Ethereum and Bitcoin prices continue to be in cutthroat competition, every BTC trader’s worst nightmare is the Bitcoin markets crashing, with prices submerging!
However, Bitcoin market crashes are just part and parcel of investing. Even though ardent fans might contest this, it is no lie that Bitcoin prices tumble and skyrocket, leaving one wondering how long the scales will tip in their favor.
Get WazirX News First
We understand how stressful it can be to see the Bitcoin market crashing and scratching your head attempting to make Bitcoin price predictions.
Hence, here’s what you can resort to when the Bitcoin market crashes.
Sit back, do nothing –
Sometimes, not doing anything is the best way to do something. No matter how tempted you’re to act impulsively seeing the Bitcoin market crash, we suggest that you breathe and relax.
Fluctuations are intrinsic in the stock market. Though the market suddenly crashing can be terrifying, it doesn’t imply you’ve to do something after a Bitcoin price drop.
You might end up doing more harm than good, given that it’s almost impossible to make accurate Bitcoin price predictions.
Don’t sell.
“Buy low, sell high” is a rampant saying in the investing world.
The Bitcoin markets crashing naturally cause a depreciation in the asset’s value, especially the Bitcoin price.
Selling at this point might be profitable to some. However, there’s no thumb rule for this.
Critically analyze your situation and take the step you deem fit, not necessarily following the herd.
Buy
Bitcoin markets crashing can also be good for you. You can buy this promising asset during trying times in the market.
In case you had your eyes set on Bitcoin price lowering, frantically checking its charts, making innumerable Bitcoin price predictions, doing your research, then buying it might be an excellent idea for you!
Nevertheless, keep in mind that the global trend in the dipping Bitcoin price can render it all useless.
Readjust your portfolio
Before you just jump into this, we advise you to wait till the market stabilizes.
Once the Bitcoin market crashing stops, assess the damage to your assets. Look at your investments and deduce how much they’ve been affected.
Both the flawed or powerful areas can be opportunities in disguise for you to invest and revamp your portfolio, making most of the Bitcoin market crashes.
Exit to fiat or stablecoin.
Whether you predict the Bitcoin market crashing or not, you can always consider converting your cryptocurrency to fiat currencies or, better yet, stablecoins.
Wazirx offers you a myriad of fiat currencies to choose from as you wage war against volatility.
Experts suggest that you time your exit from and entry into the market well, along with calculated Bitcoin price predictions.
The best bet is setting aside the money you can risk and then sticking to your plan despite the fluctuations during the Bitcoin market crash.
Go short
Turn to this method only if you’re a seasoned trader. Some exchanges offer “shorting Bitcoin” as an option.
To short Bitcoin, all you’ve to do is contact a trading agency/platform and place a short sell order when the Bitcoin market crashes harm everyone. The agency you chose then sells Bitcoins from their reserve, assuming that you’ll pay them an equal amount of BTC in the future.
Bitcoin price movements show that it is emerging as an asset of value in the future, irrespective of the uncommon Bitcoin market crashes.
While the above strategies are best among the rest, we would still say that you perform your due diligence before blindly using any strategy to benefit from a Bitcoin market crash.
Frequently Asked Questions
How Can I Convert Bitcoins To Cash?
Bitcoin may be converted to cash in various ways, including crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer to Peer Transactions. You may do this by using Bitcoin exchanges like WazirX. You may also sell Bitcoin for cash faster and more anonymously through a peer-to-peer marketplace.
Is Bitcoin Cash A Good Investment?
Bitcoin Cash is a hard fork of Bitcoin formed in 2017 to address Bitcoin's scalability and challenges. Bitcoin Cash seeks to make global transactions faster, cheaper, and more secure. Bitcoin Cash is now accepted by thousands of online and offline businesses all over the world. Studied correctly, Bitcoin Cash may be an investment worthy of consideration.
What Is Bitcoin Used For?
Bitcoin was created as a means of sending money over the internet. The digital currency was designed to be a non-centralized alternative payment system that could be used in the same way as traditional currencies. Bitcoin is being used by an increasing number of businesses and individuals. This includes establishments such as restaurants, apartments, and law firms.
What Is Meant By Bitcoin?
Bitcoin is a digital currency that was initially released in January 2009. It is based on ideas offered by Satoshi Nakamoto, a mysterious and pseudonymous figure, in a whitepaper. The name of the person or individuals who invented technology has not been revealed. Bitcoin promises lower transaction fees than other online payment systems, and unlike government-issued currencies, it is decentralized.
What Are The Chances Of Bitcoin Crashing?
Two Yale University economists (Yukun Liu and Aleh Tsyvinski) produced research titled "Risks and Returns of Cryptocurrency" in 2018. They looked at the possibility of Bitcoin crashing to zero in a single day. The authors discovered that the chances of an undefined tragedy crashing Bitcoin to zero ranged from 0 percent to 1.3 percent and was around 0.4 percent at the time of publishing, using Bitcoin's history returns to determine its risk-neutral disaster probability. Others claim that because Bitcoin has no intrinsic value, it will inevitably crash to zero. On the other hand, Bitcoin advocates argue that the currency is backed by customer confidence and mathematics.
How Many Bitcoins Are There?
There are 18,730,931.25 Bitcoins in circulation as of June 2021. The total number of Bitcoins that would ever be there is just 21 million. On average, 144 blocks are mined every day, with 6.25 Bitcoins per block. The average number of new Bitcoins mined every day is 900, calculated by multiplying 144 by 6.25.
How Bitcoin Mining Works?
Bitcoin mining is a crucial element of the blockchain ledger's upkeep and development and the act of bringing new Bitcoins into circulation. It's done with the help of cutting-edge computers that solve exceedingly challenging computational arithmetic problems. Auditor miners are rewarded for their work. They're in charge of ensuring that Bitcoin transactions go through smoothly and legitimately. This standard was established by Satoshi Nakamoto, the founder of Bitcoin, to keep Bitcoin users ethical. By confirming transactions, miners assist in avoiding the "double-spending issue."
Is Bitcoin Safe And Legal In India?
In 2020, the Supreme Court of India lifted the RBI’s restrictions on cryptocurrencies. According to the Supreme Court, the existence of Bitcoin or another cryptocurrency is unregulated but not unlawful. The verdict has greatly aided the world of digital money in the country. To put it another way, investing in Bitcoin is perfectly legal, and you may do so through various apps and traders.
Can Bitcoin Be Converted To Real Money?
Crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer Peer Transactions are all options for converting Bitcoin to cash. This can be accomplished by using Bitcoin exchanges such as WazirX. A Bitcoin ATM is a real place where you may purchase and sell Bitcoins with cash, unlike standard ATMs that allow you to withdraw money from your bank account. Many websites provide the option of purchasing Bitcoin in return for a prepaid debit card that works similarly to a standard debit card. Through a peer-to-peer marketplace, you may sell Bitcoin for cash faster and more privately.
Is Bitcoin And Cryptocurrency The Same Thing?
Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.
Disclaimer: Click Here to read the Disclaimer.
