Financial instability is happening around the world and we are seeing that all markets whether crypto, stocks, metals or any other type of market are falling and crashing badly.
Especially if I talk about crypto, Bitcoin has recently hit a low of $61K which is around a 50% drop from its all-time high. Apart from that, altcoins have fallen several times more than Bitcoin. And if we talk about metals which are considered precious metals and safe-haven investments they have also dropped in price.
If I talk about silver it has hit a low of $46. When I recently bought silver I purchased it at around $51.5. But if we look at its current price, it has dropped by approximately 15 to 17% which is a very big loss.
If I talk about my own investment, a few days ago I invested in silver because I considered it an excellent price. So, I invested around $2,000. However after this crash it has now brought me to a loss of around $200 in just two days.
So, this is a very serious situation. If I continue holding it for the long term, there is a possibility of facing even bigger losses. On the other hand the funding fee is also reducing my money every six hours.
So in such circumstances what should an investor do? Should they simply hold their assets and keep watching the prices, waiting for a recovery?
In my opinion, no, no, no that is not the right approach.
Since I have recently invested $2000 in silver and am now facing a severe loss I already have a Plan B prepared.
You know that any investor especially a wise investor should have different plans available. If they get stuck in a situation they should know what to do. Try atleast, the rest is not in your hands.
So, I have also prepared my Plan B and if I see another major crash I will implement it.
WHATS MY PLAN "B"?
It is something like this: At the moment my free cash has completely run out. Whatever cash I had, I have invested in the financial markets and now I have no free cash available.
However I do have some assets that I can use to recover my losses and get out at break-even or with a slight profit.
I currently have a good investment in silver and at the same time I also have a good investment in HIVE. So these are two excellent assets that I currently have.
Now, what will I do?
I will keep an eye on both HIVE and silver. For this purpose I will monitor which asset has crashed more. Whichever asset experiences a bigger crash I will sell some of my other asset to support the first asset.
I will use that money to average down so that I can eventually exit at the break-even price. In this way I can recover the loss that I have already booked on the first asset.
So this is the Plan B I have prepared and I want to implement it.
Now, there is some very bad news regarding this plan: I may have to put my HIVE into power-down.
My intention is absolutely not to sell my HIVE and leave this ecosystem. That is not my intention at all.
However, because I am now facing difficulties I want to recover my invested assets at break-even or with a slight profit. For this purpose, DCA is an excellent option.
Now if I see that HIVE crashes more compared to silver I will book the loss on silver and buy HIVE.
This means that my HIVE quantity could reach around 70,000 to 80,000.
But if I see that the price of silver has dropped more I will sell HIVE and buy silver to average down my silver investment.
So this is my Plan B now and I want to recover my losses as soon as possible and start breathing again in this market.
Therefore, if I power down my HIVE, my intention is absolutely not to show that I do not value this ecosystem. Rather I am currently going through a difficult situation and it is very important for me to focus on resolving this issue as well.
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| Disclaimer: The original content of this post is written by me in Urdu. I use ChatGPT only to translate my content into English |