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One of the first and most notorious cryptocurrencies is Bitcoin (BTC).
CoinDeskindicated that as of July 17, 1 BTC traded at approximately $64,818.48 per coin.
Thats a 54% increase in just five and a half months.
However, while these gains are impressive, BTC has experienced massive drops in value, too.
Just 10 months ago in September 2023 1 BTC was trading for as low as $20,000 per coin.
Not all cryptocurrencies are worth investing in, and many coins can be a riskier investment than others.
Be sure to do your research and use discretion before investing, especially when crypto prices are down.
Stay Focused on Long-Term Financial Goals
Hitting your long-term financial goals should be a priority.
Cryptocurrency volatility can have a significant impact on your portfolio when market swings occur.
A serious drop in crypto value can slash your assets and potentially jeopardize reaching your long-term financial goals.
Carefully review your long-term financial goals before buying more Bitcoin when prices are low.
Set Clearly Defined Milestones
Be sure to set clearly defined financial milestones before sinking your money into cryptocurrency.
While crypto prices can soar, they can also come crashing down.
Diversify Your Investments
Diversification is key to shielding your money from volatile market swings, often associated with cryptocurrency.
Once youve achieved a healthy mix, then you might consider buying some Bitcoin.
However, being patient and holding for the long term can result in improved returns over time.
Be careful not to be too emotional or impulsive when investing.
However, this strategy typically doesnt yield the best results.
Considerdollar-cost averaginginstead: consistently investing in stocks at regular intervals, regardless of the price.
This practice usually yields better returns over time.
Improve Your Mental Well-Being
Investing is very important to improve your financial standing.
However, your mental well-being is arguably more important.
When Bitcoin prices are down, take time to center yourself and focus on relaxation.
Build a Financial Safety Net
Before investing in Bitcoin, be sure to build afinancial safety netfirst.
Its safer to buy crypto once you already have a sufficient financial safety net.
Create a Mindset of Resiliency
Partake in activities that promote resilience.
These can range from journaling, self-reflection, therapy, or exercising.
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