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lauferdc01

If XRP is to Drop in Price Where Do You Bail Out At?

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Posted (edited)

I am by no means a strategist when it comes to hodling my XRP or other forms of crypto, but generally whenever I hear of a coin that is tanking, people often times will bail out at some point. Do you guys normally just hodl them and hope for them to rise back up, or do you bail after a certain point? Because admittedly this XRP news as of late hasn't been the most morale inducing, and it hasn't really caused the value of XRP to go up. Correct me if I'm wrong on that last one. Then again, I am very much a "n00bie" when it comes to this sort of stuff. Any tips or advice would be greatly appreciated!

 

Thank you :)

Edited by lauferdc01

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Fundamental progress is my means of judging whether I bail out or not. Having said that, I'm assuming a sub 15c pricepoint would indicate something's really wrong.

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40 minutes ago, dr_ed said:

I don't envision a scenario where I would sell the position I'm holding. For one thing it's held 30 cents way better than a whole raft of naysayers said it would, and it'll probably keep holding 30 cents as a firm bottom........unless BTC takes one last capitulation down leg, which will pull down the whole cryptosphere......but if that happens I'd view it as an opportune moment to ADD some coins, not sell out.

The overwhelming likelihood is that if that happened it would be a short, brutal drop that takes BTC down to 3000......or maybe down to the next support at 2200. And then the market will start a new cycle. Markets are cyclical. There is no evidence that XRP will go to zero. Not the slightest reason to think anything like that. What you might not know is that these constant FUD hit pieces are written by people who have websites that advertise that they'll say anything you want them to say......for a price.

Here's a strategy that works, Buy when assets are selling at ten cents on the dollar, which is to say now.

You buy them. The next time the market seems to be going bonkers and prices are way up, consider taking some profits. Most people do the exact opposite, which is why a fair number of hodlrs are underwater at the moment. 

We are in a buyers market. It's impossible to catch the perfect bottom. We're close enough. I've been accumulating XRP and a handful of others since early November. The market hasn't done anything at all that worries me........and it might be some time before we really have great gains, but you don't get those gains by selling when the market is at a point of capitulation.

People get worried because they buy too much...more than they should buy, based on their personal finances. And then they get all worried when their beloved asset doesn't make them rich in 3-6 months. It isn't that easy, unfortunately. You need to use common sense, risk what you can afford to risk and wait for the market to heat back up, which it will. I don't know the exact timing, but I do see the evidence that it will happen sooner or later.

There are sometimes (but not often)  good reasons to sell an asset when it's down. What would be a good example?

Like..Right now BTC is number one and it's a decent bet at these prices, and its a real good bet if it drops to 2200. But if BTC suffers a 51% attack because its too centralized because all the miners are in 3 consortia all existing at the whim of the Chinese communist party? Then it might fall  a whole lot further than 2200, and it might not come back.

And/or when some other crypto ( a fast, scalable, decentralized one like XRP) takes over as the cash of the internet? BTC might just slowly fade away.

But you can't necessarily count on getting out with anything if something like that happens....so how do you manage your risk?

You hedge somehow. You don't put all your eggs in one basket. Even if its a lovely basket.

You keep a reasonable limit on your position size. In my opinion, someone who has no savings at all  and no way to even pay an unexpected repair bill on their car probably shouldn't be putting half their paycheck into XRP or any other crypto.

But people do things like that. And then they're eaten up with anxiety, and they're hard pressed not to sell when they see the market moving in the other direction than what they were hoping. And they become obsessed with each daily price move that in five years will be so tiny they don't show on the chart.

I don't mean to preach.....just maybe teach, if you're willing to listen. 

Much thanks! I guess what also doesn't help is that I am a super anxious person and I am medicated for it, so I tend to be a little more on-edge whenever I see huge spikes downwards, haha. I always try to think that this is a good opportunity to buy more, since the price is significantly lower. Thankfully I don't have any bills to worry about at the moment, aside from a monthly car payment, which isn't really that awful.

 

I've been trying to break the habit of regular, daily, price fluctuations, because at one point I did get a bit obsessed over it. Though, at the moment, a lot of my eggs are in XRP, I did start putting some into Stellar and Cardano, while at the moment been contemplating Ravencoin, but I am not 100% on the up-and-up on whether or not I should go with that one.

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-Do your research.  There are more good crypto projects than I have money to invest.

XRP is my largest position, but by putting a limit, I can now hedge by buying other coins with somewhat different price drivers and other risk profiles.

 

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My average price is about 70c. I'm never going to sell at lower than that price. I would feel idiotic doing so. The lower the price got, the more idiotic I'd feel. So there is literally no way I would panic sell at low prices, because the lower it got, the more determined I'd be to either add more to my stack and/ or not sell.

There's always  a risk I may panic sell at high prices, particularly if it shoots up then starts crashing down again, all happening above 70c. Anyway let's leave that for another day.

Looking at things the other way round, I know for a fact that I won't stop buying as the price goes down, because I was buying bitcoin and XRP as their price was coming down in recent months. I bought bitcoin at 3180, probably when others were panicking a bit. If there is a fast capitulation, I'm definitely gonna be buying a lot. If there is a slow dribble down, I'll be buying less, but still will be buying. 

It really helps to know your own psychology in times like these.

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Posted (edited)

I could say I wish it would drop more :D ..so i could accumulate much more.

Being honest I'm happy if it holds solid for now around the high 20s or mid 0.30 stage to buy.

I believe its a very low price, but have no concerns overall really.

Slow and steady wins the race. Others without providing value or uses cases will subside.  :D

 

 

torthare.jpeg

Edited by Tayto
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18 minutes ago, retryW said:

A lot of people here have lost upwards of 90% of their investment.

What's another 5-10% ?

For me, I accept that any money I've invested in DAs is lost forever. If it turns out I make money from it instead, then I'll be over the moon (pun sort of intended).

Have they, or you, ever gotten it back? I take it this whole thing is matter of mental resilience and extreme patience. Then again, this is my first time ever investing in anything.

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Posted (edited)
1 hour ago, lauferdc01 said:

Have they, or you, ever gotten it back? I take it this whole thing is matter of mental resilience and extreme patience. Then again, this is my first time ever investing in anything.

I bought from .30c (AUD) all the way up to $3.90 so my average cost was quite high.

What I've done is buy $200 worth each pay since the crash, and my average buy in is now sub $1. This means it will take significantly less price movement for me to be back in the green.

But there are others who indeed are in the green after holding from say 0.5c down to 0.02c for a long time, before it finally had a large upward movement. (Bob Way from Ripple included. Also price points may vary).

 

As I've said before, I don't see this as similar to investing in Google or Yahoo during the dotcom bubble. This is the equivalent of investing the the internet itself. I honestly see what Ripple and XRP are doing is the most innovative and game changing technologies since the birth of the internet.

Hense why I'm happy to hold through the dark times. If they succeed, I'm going to be able to retire very very early.

Edited by retryW

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I wouldn't sell if the price crashes. If it were to go down to let's say $0.10 - $0.15, I'd start buying a little more. What would be the point of selling then? For most people, they would have already lost most of their investment at that point. And by selling, they're denying themselves the possibility of making it back. As we all know cryptocurrency prices are extremely volatile and anything can happen. Historically, selling low is not a winning strategy. No one ever got rich from panicking. 

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