Getting stuck in the crypto-market black hole is something that happens constantly. Imagine yourself buying Bitcoin at $65k before the Bitcoin bear market hit, where we saw Bitcoin go as low as $18k.
But, that's not the end...so, out of panic and fear of losing what's left of your money, you decide to sell your coins as quickly as possible, leaving you with more than 50% loss.
This is a good example of a black hole because you just lost all your profit and capital In a single dip and FOMO trade.
causes of the black hole Saga
The most common cause of the black hole Saga is FOMO(Fear of missing out). And this is quite common because we are all humans, and are therefore subject to greed and the occasional emotional swing that comes with it.
After reading a detailed analysis of Bitcoin and studying its candles, including listening to professionals and in most cases YouTubers as they give what they tag "not financial advise", our body gets excited, and the joy of instantly becoming rich blinds our eyes to clear and un-cryptic details. The only thought living rent-free in our mind becomes wen Lambo? Or wen cash out? We end up calculating 100% profit without factoring in the possibility of a loss, why? Because it's Bitcoin.. what could possibly go wrong?.
Then we invest our money at the exact wrong time and then Bitcoin takes a heavy dip.
Leaving us with a heavy Loss and a scrooge-like attitude.The second cause of the black hole Saga is lack of knowledge(newbies on a rampage). Guys please before you invest your money into any coin do well to make your research and also recheck the facts you've already gathered., Because one wrong move can end your investing career before it starts.
And lastly Greed. Don't get greedy guys and don't be chicken either. Because one thing definite about the crypto market is it that, it's volatile and no single person can say or predict the outcome of a coin, so when you've set a limit or a goal in mind, once your money reaches that point .... it's advisable you get you money and move. Even thou the probability that the value will still rise or fall is 50:50, it's better to be safe than sorry.
How to beat the black hole saga
Beating the black hole is simple but can also be tricky in the wrong hands but either way, a great deal of profit is assured if applied correctly.
Market watch: Watching the performance of the crypto market is a good place to start as you can verify what the cause of the dip is. Is it specific to the coin you hold?? or is it general ??
Re-Balancing: After a thorough breakdown of the problem in the market, the next and best logical thing to do would be to Re-Balancing loss. It's a little bit tricky but imagine having a 53% loss in a general market dip. The logical thing to do knowing that the crypto market is here to stay would be to balance your loss by buying more coins. This does two things, ¹ it covers your loss and ² it increases your possible profits when the market pumps.
Avoid FOMO: This is the most important as emotions have no place in business. Every decision made with emotions attached to it. Will eventually lead to a catastrophic outcome. So when the market dips stay strong don't sell... Hold!.