Volatility

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Bitcoin was on a strong run up in price. People were making a lot of money. It was on the news everyday. Then it did what it will do from time to time. It dropped it price, and then kept dropping.

It went from almost $20,000 all the way down to almost $12,000 over the course of a few days.

Cryptocurrency markets are volatile.

You will hear about how volatile the markets are quite often. This can be good if you are making money. Bad if you are losing it. When you first get started you may think you are prepared for the volatility. But most people are not.

When a coin they hold starts dropping drastically in price the tend to get scared. This may cause them to sell and a loss of money. This is the wrong thing to do.

When a market falls look at it like something going on sale. You can now buy more cheaper. If you believe that the coin is good, this is a good time to buy more.

I have a friend I got to invest in cryptocurrencies. After he bought it, it went up in price. He was happy. Then it went down and he got nervous. I told him to just wait. The markets move quite a bit and to just wait it out. He did not wait.

The price went down more so he sold. Four days later the coin began to rise in price. If he had stayed with the coin it would have given him a %50 return.

You will be in a situation like this. Just try to remember that it is a volatile market and to not rush and sell a coin.

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