The US stock market is experiencing another correction, which in turn is affecting crypto assets. Bitcoin and Altcoins have fallen further in the last 24 hours. What to do?
#1 Be Mindful When Buying the Dips.
On occasions like this there are indeed many very attractive opportunities. However, we still have to be “mindful” about buying corrections. Don't let us just catch a falling knife that will fall deeper and deeper.
#2 Identify Areas of Significant Value.
As the price drops further, identify areas of significant value and make gradual purchases as the price approaches those areas. Do not averaging down when the price has not approached a significant area of value.
#3 Avoid Excessive Trading Leverage.
Under these circumstances it is best not to engage in the derrivatives market. It is better to buy the correction at spot rather than trying to catch the falling knife with leverage. Even for shorting, the area is also very inappropriate and the market has the potential to short squueze.
#4 Be Greedy When Others are Fearful.
Maybe this correction is an opportunity that can be utilized for those of you who feel that you have not had the opportunity to enter the market. Many of you also recognize new crypto this year. Opportunities always come for those who want to take advantage.
