The dip can be scary, but any good investor knows that it is inevitable. Markets naturally experience ups and downs. While paying too much attention to a day's dip doesn't make much sense unless you're a day trader, at one time or another we all have stared at the descending red candle in a panic. It's natural to feel worried when the market turns, and your favorite coin — Algorand, who are we kidding? — feels the brunt of it.
But all isn't lost in a dip. Here are some helpful tips to coping with dips when they happen:
Diversify. Ensure your investments (even in cryptocurrency) are adequately diversified. You'll want to see a mix of investments in small, medium, and large caps in crypto - as well as investments in stocks, 401ks, and bonds. (What is market cap?)
Set stop orders. If you're worried about losing your scalp on an investment, consider placing stop order to sell your stock if it reaches a certain threshold. This can ensure you don't lose what you put in.
Play the long game. If you believe in a particular coin or stock, consider riding the dip to recovery. It can take a lot to grin and bear losses, but losses aren't realized until you sell. By holding, you ensure your investment can recover.
Stop checking your investments. As mentioned above, unless you're day trading, it may not make much sense to keep a hyper focus on your stocks. Checking your investments daily, or even weekly, may do more harm than good to your mental health. Consider spending time with hobbies or family and friends instead.
— The Algo Post
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