I recommend giving my July 11th article a read before this one as it provides greater context and historical examples of “The Great Shakeout” theory.

I know what most of you are thinking…cryptocurrency is failing. Bitcoin is a ponzi scheme. All other coins are scams. Well, you might want to reconsider the hysteria…

In early July, I released an article entitled “The Great Shakeout OR Massive Sale On Cryptocurrency?” My theory with these major market shakeouts is truly very simple:

A ton of new capital enters the cryptocurrency markets from new traders interested to make profits. Bitcoin along with overall market cap continues to grow to new highs, very quickly. Seasoned traders and whales begin “gaming the market” in the sense that new traders will easily sell at a 10% loss, maybe more, in order to keep their money…

Is that not a reasonable theory? The article I mention was written when Bitcoin was sitting at $2,361…whoever the article was a catalyst to more research for…well, they’re probably happy they read my article. I am here to alert the cryptocurrency community on happening while creating thought-provoking conten — this is not intended to be financial advice by any means. DO YOUR OWN DUE DILIGENCE. Also, give me a follow to be alerted when this type of stuff happens! d{^_^}b

What Can I do to Protect My Initial Declining Investment?

Buy low, sell high. At the core, this is the best advice that can be given. So if you bought high, DO NOT sell low…you are guranteeing yourself a loss on your trade — why would you take a loss if the market has proven time and time again to bounce back even stronger?

While this is not intended to be financial advice — these are some principles that many hardcore traders live by. Simply place your declining-in-value investments into a separate account and don’t look at it until the market begins to recover from this. Why? Again, the market has proven time and time again to bounce back.

A little demonstration:

The article I wrote was back on July 11th, probably the biggest shakeout I have experienced, beside this one.

July 8th: Bitcoin price = $2,560

July 11th: Bitcoin price = $2,365

July 16th: Bitcoin price = $1,880

July 21st: Bitcoin Price = $2,791

Now look at the right of the chart…does it not look like we are headed for something similar? Do your research. Use reason. Do not involve your emotions of lost money or you will likely lose more from panicking.

Hope this helps catalyze your Due Diligence process and gives some new insights on the cryptocurrency market!

Below are some resources for beginning cryptocurrency enthusiasts or others interested in something new: