Wow, after yesterday, seeing a green XRP and a red market, it was XRP that showed a dark red colour.

Source

I am not claiming I am the best trader out there, that is for others to claim and say, but I do know there are a couple things you can do in a bearish period of time. I will discuss a couple of them. It all depends on how much of a risk (averse) person you are, what action describes you:

1. Absolutely Nothing
2. Sell the market
3. Buy the market
4. Sell and Buy the market
5. Shorting the market

ABSOLUTE NOTHING

So let's start with the ignoring thing; do absolutely nothing. This person is an investor and a HODLer. Doesn't believe in doing multiple trades in a short time frame just holds, longs the market and just wants to see the price go up in time, short term has no effect on this category. Yes, it hurts to see your investment loose capital power, but what goes down ...... will eventually go up, especially with an industry that is still very young, so if you wait long enough, good things pop up around the corner ...... sometimes, be prepared to wait long and eh .... be invested in the correct token/ asset/ currency ! ! !

SELL THE MARKET

If the pressure is too much, if this is not what you can handle, because it is too volatile, you are not a person that can sit and do nothing, while the price is going down with, 10%, 20%, 30% or more, please get out while you can. Is this my advice, financially, no, not at all, health wise absolutely, it is only going to give you panic attacks, worrying all the time and eh .... there is more to live than crypto ! ! !

BUY THE MARKET

If you are able to invest in a red market, extra cash to invest with without you, your family and/ or loved ones to suffer from, this is a way to bring your average price down. Also known as DCA, Dollar Cost Average, this will help you going into the green numbers earlier. Little example

You buy:

1000 XRP for 52 dollar cents on Monday —–) average cost is 52 dollar cents.

Price goes down on Tuesday, you buy 1.000 XRP for 40 dollar cents. Your average cost went down from 52 dollar cents to 46 cents. You will start seeing green numbers when XRP passes the 46 cents, 4 cents before you only had the 1000 on 52 dollar cents ! ! !

This of course costs money and to do this, you also need to time the market. Besides the money, this also costs time. You need to be aware of what the market is doing. You can setup warnings, but it still requires your time ! ! !

SELL AND BUY THE MARKET

For a lot of people this is scary stuff and GOOD this is scary for a lot of people as you can get REKT easily

If you read graphs, if you do technical analysis you do charts you may be able to forecast these moments. If you are more into fundamental analysis, you may arrive at the same point looking at fair market prices. Both approaches could work well, could make you a lot of money, especially going back up and does NOT require you additional investment money.

Example:

You have 1.000 XRP bought at 52 dollar cents (52 dollars), but have a feeling (maybe backed up by graphs, or factual (lack of) results) that the price is going down, you may want to sell the 52 dollars into USDT, the stable coin, to keep your value .... Price goes down to 40 cents, you decide to buy back and suddenly you will have 1.300 XRP.

Couple things happened:

You have more XRP

You just dropped your average buying price

If the price goes back up to 45 cents you would have had a loss with the 1.000 XRP bought for 520 dollars, as they are worth now 450 dollars

If the price goes back up to 45 cents you would have had a gain with the 1.300 XRP bought for 520 dollars, as they are worth now 585 dollars. Makes a huge difference. Sounds weird buying back for a lower price. Do know you have to pay a price for buying Crypto (sometimes for selling also).

So in an ideal world you would have more XRP with a lower average cost; but it doesn't always work like that. What if the market turns against you and instead going down it goes up, in our example, you sold the 1.000 for 520 dollars (0,52 dollars, but the price rices to 0,60 dollars. You buy because you are afraid of the big BULL, so you actually loose 80 dollars.

This is often done without thinking about it. When you do not own millions or even more with the lower priced assets, it often doesn't even make a big difference if you jump 1 to 5 cents. Don't get me wrong, I believe in gains, whether small and/ or big, but sometimes the risk outweighs the profit. Make sure you know what the gain is, with the actions you make ! ! !

*SHORTING THE MARKET*

Very nice option, but I am NOT going to explain this here, as I don't want to give ideas to the person reading this that is NOT as fluid with investment vehicles in order to short. You can loose more money than you initially put in and if you are not aware how to do it, I'd rather not be the person that shares that information. The internet has a lot of pages talking about this option. Good luck and be careful ! ! !

Feel free to comment on the tweet in which I am sharing this new blog, once again, good luck, be carefully and

STAY SAFE ! ! !