How Are You Surviving the Current Crypto Market?
The cryptocurrency industry has had a rough start to the year, with cryptocurrency prices plummeting sharply over the last three months. Bitcoin (BTC) and Ethereum (ETH), the two most valuable cryptocurrencies by market capitalization, have lost more than 40% of their value since reaching all-time highs in 2021. At the time of writing, the total market cap of cryptocurrency had dropped from nearly $3 trillion to $1.8 trillion. If you’re a cryptocurrency investor, these steep price drops may scare you, especially as more and more headlines appear, amplifying investors’ fears. However, although the current market is not as good as it should be, cryptocurrencies are not out of the game. BigONE believes you should do the following four things to help survive the current dip in the market.
Don’t be swayed by fear
It is understandable for investors to sell or buy due to market fear. Many investors are tempted to buy and sell to cut losses and continue looking for other trade opportunities because no one wants to see the value of their investments decline. However, BigONE believes that you risk permanently losing your assets if you do. Because the cryptocurrency market is volatile, there will be a recovery soon enough once prices bottom out. If you sell your cryptocurrency just because the market is falling, you will lose out when the price rises again. While cryptocurrencies exist in a relatively new and untested market, the historical data shows that the market will always make a comeback.
You might think now is an excellent time to buy the dip. BigONE advises you not to rush into this decision either. Instead, look at what’s going on in the market first, and then do as much research as you can on each cryptocurrency you intend to purchase. Unfortunately, the rush to buy can sometimes cause you to disregard the importance of cryptocurrency research. Only invest money that you can afford to lose.
View market changes from a macro perspective
There has been a lot of comment on the current cryptocurrency market collapse, with most analysts and experts attributing the root cause to the US Federal Reserve’s withdrawal of stimulus, regulatory uncertainty, and concerns about escalating tensions between the West and Russia. It is unclear how much these factors influence cryptocurrency investing. Because the Fed’s action indicates that the broader economic environment is taking effect, many believe that cryptocurrencies are unlikely to make such a large price jump as in 2021. BigONE, on the other hand, believes that if your initial investment strategy is for the long term, you certainly should stick with it.
Regulation is a significant short-term issue for the cryptocurrency market, with governments worldwide likely to impose stricter regulations on how cryptocurrencies operate, and some countries may even follow China’s lead and outright ban cryptocurrencies. In the long run, this could boost investor confidence and drive some bad actors out of the market, but it also has the potential to cause additional short-term pain across the board.
Market volatility is normal
There will be highs and lows in both the stock and cryptocurrency markets, especially because the cryptocurrency market is an unstable and high-risk investment. With such a high-risk investment strategy, you should limit it to a small portion of your portfolio and only invest money you can afford to lose. For example, since Bitcoin’s inception, its value has been halved several times due to market declines, but historical data shows that the value of Bitcoin has then risen almost every year. This is also why we want to remind everyone that cryptocurrency price fluctuation is a normal market phenomenon, and not to miss out on longer term gains because of fear of the uncertainty caused by temporary gains and losses.
Create an effective investment strategy
You can better decide what to do next once you’ve fully assessed what’s happening in the market. Remember that a ‘buy-and-hold’ investment strategy is frequently the most effective way to build long-term wealth. However, as the market declines, you may lose faith in cryptocurrencies and conclude that they are not an excellent long-term investment. Perhaps this price drop has kept you awake at night, making you realize that volatile cryptocurrency investments aren’t for you? If this is the case, you should consider the best way to exit.
In general, it is best not to sell cryptocurrencies when they are at their lowest point in six months, as this will result in massive losses. Instead, BigONE believes that you should wait for the price to recover before selling, which could save you money and even change your mind about cryptocurrency investing. A practical step is to reevaluate your current positions and reduce your holding of the most volatile assets. Another way to increase the value of your portfolio over the longer-term, and reduce worry about price volatility, is through staking assets.
Staking provides investors with a new way to easily obtain token airdrops. By locking the mainstream and other tokens such as BTC, ETH, USDT and ONE on the BigONE platform, investors can obtain earnings. The more funds an investor locks up, and the longer the participation time, the higher the profit obtained. Staking is flexible and easy to operate, and the earnings are settled daily. It is the best choice for investors to achieve “passive” income.
You may think that you are still confident in cryptocurrency investing and may even decide to increase your investment. However, all of this assumes that you make an informed decision and do not rush into any decision.
When you first come across a cryptocurrency crash, it can be frustrating and perplexing. However, BigONE advises you to take a level-headed attitude and keep an eye on cryptocurrencies with long-term potential. While it may be a difficult road ahead, it is believed that the advancement of blockchain technology will change the way people use money in the future, to the benefit of your crypto portfolio.
