There is no denying the fear that presently concerns those who hold Bitcoin as to whether the crypto currency might fork on August 1st. This is currently playing havoc with the price of bitcoin.
Many speculate the currency is in a bubble. But generally currency bubbles are created by central banks who expand and contract the money supply. Clearly the volatility and large price swings in the crpto currency markets worry many people, often because this is the first time they are experiencing what it is like to trade in a truly free market.
Fear and Greed
Added to which, most amateur investors make their decisions based on emotion – “fear” and “greed” being the most prevalent.
When the value of an asset begins to fall, that’s when panic sets in among the amateurs and they sell. It’s also the time that the professional, seeing bargain prices (and having confidence in the future potential) will buy.
The corollary being that when prices begin to rise, amateurs jump on the band wagon wanting to enjoy the upward rise; whilst the professional will sell – so taking profit.
I’ve heard many people say that they are waiting for an asset to reach the “bottom” before buying; or waiting for the price to reach its “peak” before selling.
Think about it.
When the price of an asset has reached its lowest in a cycle, who would be selling?
When a price has reached its highest, who would be buying?
So if Bitcoin is about to fork, or you’re uncertain as to what to do, the simple answer for the amateur is to safely hold.
Two important words there: Safely and Hold
Watch this short video by Andreas Antonopoulos on How to Secure Your Bitcoin
Meanwhile, for the next week or so I will continue to let the Expert Advisor (robot software) that manages a portion of my crypto currency portfolio continue the excellent job that it has been doing.
Long may it continue!
If you want to learn more about this robot software managing my Bitcoin, go to Earn Bitcoin