Crypto winter panic: how to keep patience?
This is neither the first nor the final bear market in the crypto world. Usually, all markets experience difficulties from time to time. But how far this goes now?
How Can Investors Survive the Crypto Winter?
While some investors may be inspired to short some cryptos (bet on the price falling), experts advise against it.
“The time to short is over,” said Scott Melker, a crypto miner, and investor. — The benefits of a quick launch are quite limited right now, and buy optimism is exponential.”
The cryptocurrency market correction may continue for a long time; you should be prepared for this and avoid taking excessively hazardous moves. It’s fair to want to buy dips, but it’d be a pity to run out of money before the rates reach the so-called bottom.
Instead, consider staking as strengthening the security of your portfolio. Staking is the process of locking your cryptocurrency on a blockchain for a set period to generate passive revenue. Staking, as opposed to a bank savings account, can help you optimize your capital and produce revenue. Bit4you is glad to announce that it offers one of the market’s most competitive prices. USDT staking on bit4you has increased to 10%!
Furthermore, experts recommend using dollar cost averaging. The main concept of this strategy is to split the money to be invested and then invest at regular periods, independent of market movement. Experts believe that there is a case for a bear market, favoring the slow expansion of one’s portfolio.
If you want to know more about this strategy, read the article about DCA on the bit4you Academy.
What about the previous crypto winter?
During the last crypto winter in 2017–2018, the bottom of BTC was achieved exactly one year later — in December 2018, $3,000. After reaching ATH in December 2017 it cost almost 19,000). When investing, halving is also something to consider. The upcoming block award halving is slated for April 2024.
Following that, the supply will diminish, as will the flood of new coins from miners. Some analysts argue that halving and limiting BTC supply is what permits the coin to avoid issues like inflation.
However, crypto-winter is not the end of the world. Try not to sell your digital assets quickly following the market drop. Wait and watch the situation; maybe after a time, you’ll be able to profit when the price rises.