The correction continues into the fifth week. The cryptocurrency market dropped to a low of $277 billion before rebounding back to $387 billion to end the week.
Over the previous week, Bitcoin dropped 6% to $7,900 and Ether dropped by 9% to $790. The crash bottomed on Tuesday when Bitcoin fell to as low as $6,000 and Ether sank to as low as $570. The market quickly recovered but again showed weakness by the end of the week.
We explained using dollar cost averaging to lower the cost basis of your positions.
Here is an example: let’s say you are putting in $1,000 a week to buy ether. 1 month ago when ether price was $1,200, you could buy 0.83 ether. 1 week ago when ether price was $900, you could purchase 1.11 ether with the $1,000. This week, with ether price being as low as $570, you could buy 1.75 ether with the same amount of money.
You are buying less when the market is high and more when the market tanks, effectively buying more at the dip. Over a sufficient period of time, if you are gradually building up your position, it doesn’t matter too much when you entered the market.
We’ve seen too many people worrying about buying the top but are scared when the market crashed. Dollar cost averaging is a good way for people to put their emotion aside, allowing them to enter the market without worrying about the state of the market.
Hong Kong Orders Exchanges to Delist Securities Tokens: https://www.coindesk.com/hong-kong-orders-crypto-exchanges-delist-tokens-deemed-securities/
BitGrail Cryptocurrency Exchange Becomes Insolvent After Losing $170 Million: https://www.bleepingcomputer.com/news/cryptocurrency/bitgrail-cryptocurrency-exchange-becomes-insolvent-after-losing-170-million/
Coinbase Crypto Exchange To Roll Out Long-Awaited SegWit Upgrade In ‘Few Weeks’: https://cointelegraph.com/news/coinbase-crypto-exchange-to-roll-out-long-awaited-segwit-upgrade-in-few-weeks
India’s Tax Department Issues Notices to 100,000 Crypto Investors: https://news.bitcoin.com/111541-2/
Senate cryptocurrency hearing strikes a cautiously optimistic tone: https://techcrunch.com/2018/02/06/virtual-currencies-oversight-hearing-sec-cftc-bitcoin/
Crypto’s go-to wallet forked as MyEtherWallet co-founder launches rival service: https://techcrunch.com/2018/02/09/myetherwallet-fork/
Articles From Crush Crypto
Crush Crypto Core January 2018 Report: https://crushcrypto.com/ccc-january-2018/
Current ICO Review: https://crushcrypto.com/current-ico-review/
Effect.AI ICO Review: https://crushcrypto.com/effect-ai-ico-review/
TE-FOOD ICO Review: https://crushcrypto.com/te-food-ico-review/
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.