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Bitcoin has been around since 2009.
Since then, thecryptocurrency markethas exploded in popularity amongst investors looking for alternative asset classes.
But its also seen its share of ups and downs.
So, what should you do if Bitcoin plummets?
The strategies will depend on whether or not you currently own this cryptocurrency.
That said,heres what some experts suggest.
The crypto market has never been a good place to invest.
At times it has been a profitable place for some to speculate.
Still, Johnsons belief is to just say no in respect to crypto including Bitcoin.
I can think of few worse strategies than committing investment to cryptocurrencies, he said.
One cannot invest in the wide array of cryptocurrencies, one can only speculate.
If Bitcoin plummets, dont panic.
Bitcoin is a long game and has rebounded after every crash.
If anything, buy more at a discount.
Do your research to fully understand what youre buying before going all in.
Bitcoin isnt for everyone.
Stay Informed
No matter how you spend your money, its important to stay informed.
The future of Bitcoin is bright if you take a long view.
Short-term price swings wont matter in the grand scheme of things.
As for those who are more hesitant to invest in crypto, Grayes suggested taking things slow.
Only risk what you’re free to afford to lose in this nascent market, she said.
There are many ways to participate without speculation, like accepting crypto as payment.
The more people use Bitcoin, the more stable and valuable it will become.
Determine how much risk you are willing to take, he said.
However, if your investment in Bitcoin is substantial, reassessing your allocation might be wise.
Jacobs suggested addingmore stable assetslike stocks or bonds to mitigate the risks.
Keep Your Expectations Realistic
Jacobs also advised keeping your expectations realistic as cryptocurrency is inherently quite volatile.
it’s possible for you to also establish stop-loss orders to protect yourself against severe downturns.
Remember, too, that Bitcoin is a speculative vehicle withno intrinsic value.
Its price is primarily driven by market sentiment and hype rather than fundamental economic factors.
Given this, Bitcoin is and should be considered a high-risk venture.
Consult with aqualified financial advisorto understand the potential risks and rewards associated with investing in Bitcoin, said Jacobs.
They can help tailor an investment strategy that aligns with your financial goals and risk tolerance.
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