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What Do You Do During a Crypto Crash?

The crypto market has been a sea of red as of late, as panic fills the crypto space. With the fear and greed index pointing to extreme fear, what will that mean for the crypto market in 2022?

Will it really happen?

Cryptocurrencies are an extremely volatile asset class where Bitcoin (BTC) has crashed way below support levels multiple times in history. Over the past few weeks, main crypto tokens have been bleeding red, where BTC decreased by 14% in just the past week, placing it at less than 50% from its all-time high.

Before you start unloading your crypto assets in fear of losing everything, here are some facts about cryptocurrencies that you should know:

Historical BTC Crashes

It has happened before. If you just joined the crypto scene, you may not be aware of every horrific crypto crash in history. We had the 2013 BTC crash where 83% of BTC’s value was wiped out in a matter of 2 days, or the 2017 crash with an 82% decrease within days. The main conclusion we can draw from this is that it is not the first time prices plummeted and the crypto market was able to withstand market shocks and recover over time.

Recovery

The market always recovered. Based on historical records which you can observe on charts, the crypto market not only recovered but also always reached higher highs, breaking new records time after time. Panic selling will not only cause you to make losses on your investments but will also potentially cause you to incur hefty opportunity costs especially when the market starts picking up.

Crypto is here to stay

Unless the world is ending, and electricity is cut off, it is highly unlikely that it could be discarded or ignored. The wonders of crypto have struck the world with the limitless opportunities it could offer, where it proved to be superior to traditional systems and practices. With an increase in adoption by businesses and individuals in various industries worldwide, it has long become a huge part of our lives.

What do you do?

There’s nothing much you could do in a market crash where the volume is low, as money pours out from the cryptoverse. If you believe in the long-term potential of crypto, there is no reason not to HODL these assets through the mud. As we mentioned that the market always recovers and breaks through new highs, it might be wise to not act on impulse. However, blindly HODLing your assets may not be the best option, as we could do so much more by leveraging on the opportunities that DeFi products can offer as a tool.

With platforms like CoinWind that offer a range of DeFi products, it could be a great opportunity for you to accumulate tokens in your portfolio as you tide through the bear market. Functions like staking your tokens is a great option where you can stack your crypto assets regardless of whether you are in a bull or bear market. As long as there is real value in the token you are holding, you could end up being way better off when the bull run is here.

Conclusion

Bear markets are not all that bad, and you could very well take this opportunity to prepare when the bull market comes. If you aspire to be in the top 1%, you’ll have to do what 99% of the people are not doing and that is definitely not panic selling. Amid the noise, it will be beneficial if you stick to your personal beliefs and take the necessary steps to maximize the profitability of your portfolio.

Remember to always DYOR to make informed decisions. Stay safe out there!

· CoinWind Website (Start Mining)

· CoinWind Twitter and Telegram Channel (For the latest news)

· CoinWind Telegram Community

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CoinWind

CoinWind

Defi Ecological Smart Mining Financial Platform