Business Tech

3 Easy Ways To Survive The Bitcoin Bust

fiat currency vs cryptocurrency

February 14th, 2018   |   Updated on August 1st, 2020

If you are one of the thousands of people deeply infected with a preventable disease called FOMO (fear of missing out), you’ll have invested in Bitcoin (BTC) or some other cyptocurrency at the height of the boom. First off – that’s stupid.

Think about it; would you have stockpiled dozens of barrels of oil when crude hit the highest ever price of $136 a barrel?  Or invested in gold bullion when an ounce – yes an ounce – of the precious metal fetched a record price of $1,900?

No way Jose.  You’d have waited until the market had cooled off, bided your time and then struck like a proverbial snake when the price was down and – let’s face it – more reasonable and realistic.

You’d have studied the pricing charts and read all the bumph and made calm and informed decisions.  You’d have formulated a smart strategy on how to invest your hard earned cash with the endgame focussed intently on realising the best possible returns in dollar terms.

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Bitcoin Buyers Acted Counterintuitively 

For whatever reason and as the year 2017 slowly drew to a close, Bitcoin buyers reacted in a horribly counterintuitive way. Whether it was the media hype or the constrained hysteria of the bankers and policy makers that lured smart investors and ordinary folk to toss their financial planning right out of the window…we’ll probably never know.

With all the attention and gales of hot wind, the Bitcoin bubble grew and grew… and guess what?  Come January 2018 it blew up in just about everyone’s face… apart from the anonymous developer or developers behind the virtual cash and a handful of investors who bought in when BTC was around $100 a coin.

So if you’re one of the poor sods who bought Bitcoin in mid-December last year, you’d have paid a whopping $19,850 apiece.  Today, right now, you’re sitting with an investment that’s worth… um $9,447… a significant slide in value in anyone’s book.  Quite frankly you could have enjoyed much better odds at an online casino!

How To Mitigate The Slide In The BTC Price 

bitcoin

As they say in the classics, the die is cast.  You are now the proud owner of a virtual asset that you can’t see, touch or feel and really know nothing about.  There’s clearly no point in selling your bankroll of Bitcoin today or in the foreseeable future, so how do you survive the crisis and mitigate the loss?

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Here Are 3 Ways To Survive The Bitcoin Bust:

1. Diversify  

Hedge your bets, so to speak, by investing whatever cash you have lying around in assets and commodities that are not crypto in nature.

Check out the spot price of gold and if it’s within the reasonable range, add the dazzling precious metal to your investment portfolio.  Krugerrand coins are always a good bet and are easy to buy and sell.  Who knows?  Kim Jong-Il may well press that button and send the price of gold skyrocketing ever upwards along with the nuclear warhead!

Explore investing in fixed property to rent; it’s a great source of passive income and there’s always the stock market of course.  But beware of the Viceroy reports or you could find your chosen share prices plumbing the depths… think of the unedifying fall from grace of poor old Steinhoff!

2. Be Prepared To Wait For The Upswing  

Although there’s still a lot of noise – good and bad – and shrewd investors like Warren Buffett say Bitcoin is not worth the fuss, cryptocurrencies do have a place in our high tech world.

Countries like Canada and America are extremely bullish about the ease, convenience and tradability of Bitcoin in particular.  And with China banning all initial coin offerings (ICO), you can bet your bottom dollar Trump will forge a different route… just to be contrary.

What will undoubtedly happen is that crypto will be rigidly regulated, as we’re already seeing in countries like South Korea.  Regulation and the shifting away from anonymity can only be a good thing for legitimate traders… but expect to pay taxes on the next big BTC boom.

What I’m trying to say is that everything is cyclical, so be patient and wait it out for the upswing… some pundits are predicting that the price of BTC will soar to $50,000 and more sometime in 2018.  Just think of the bottom line.

3. Cash In On Opportunities

As the Bitcoin price went into freefall, the contagion spread to all the other cryptocurrencies.  Lightweights like Zcash, Dash, Litecoin and Monero – which were already priced way below biggies like Ethereum, Ripple and BTC – were and still are viable investment opportunities, especially for folk who have a limited budget.

With prices ranging from around $160 (Litecoin) to $680 (Dash) these emerging players on the cryptocurrency scene are definitely worth a punt.  Cast your mind back and it wasn’t that long ago that one Bitcoin was traded at the ridiculously low sum of just $10!

Who’s to say that one of the lesser members in the virtual pantheon of currency gods won’t be the driver of the next big boom?  And with current prices hovering well below average highs, you’ve got nothing to lose.

Astute investors know when to cash in on opportunities… and have the funds readily available to buy and buy.  Will you be the next crypto billionaire capable of spinning gold from virtual currencies?