Ethereum recently had a major dip: in the space of a day it went from £330 to £220.
Largely responsible for this crash were people getting greedy and trying to sell high to buy back again low. This works when you’re a multibillionaire but it certainly doesn’t work when you’re holding only a small amount.
A lot of people also got worried that the return on their investment was about to drop into the negative and so they sold for much less than they really wanted to. This is known as panic selling.
It’s incredibly easy to panic when the price starts falling and sell. In doing this, however, you’re very likely to lose more money than you might be saving.
And so, here’s our guide on when and when not to sell.
Should I sell my Ethereum?
There are three things to check for when you’re faced with this question.
Is Bitcoin also effected?
When the price plummeted last week it wasn’t just Ethereum that was dropping: Bitcoin was too.
Bitcoin is proof of concept for Ethereum and so if the price of Bitcoin drops – at least for the moment – Ethereum is likely to drop also.
As a result, if you see Ethereum is currently low then check the price of Bitcoin. If it’s down, you’ve not got that much to worry about.
Are developers still developing?
Check out some projects built with Ethereum and follow their developer’s on Twitter.
Ethereum is more than just a token: it’s an entire platform for the creation of decentralised applications.
Ethereum will always have value if developers are still creating these dApps (decentralised applications).
To this end you can find a good list of dApps here along with their current status. Check this when you’re about to sell: if all looks good and green then HODL.
Is it still higher than it was a month ago?
Ethereum has shot up hugely in such a short space of time: if it looks like it’s going down, look at a graph that shows data from a longer period of time.
When in doubt, zoom out!
If the price has still gone up in the last month then Ethereum isn’t dying, it’s just going through a period of price correction.
If the answer to all 3 above was “Yes”, then do NOT sell. Ethereum has the potential to soar well beyond what we could possibly imagine right now: don’t be weak. If you have to watch the price then watch it and stay strong. Don’t get too overhyped and don’t get too scared either.