Crypto Winter Survival guide pt.2
More steps you should follow to be stronger in this Crypto bear market
Coo! It's a Crypto Owl. As I did my daily stretch, I thought that I should give you more advice on how to survive this Crypto Winter. So here's the second portion for Thursday.
For Today’s Menu:
🕛 Estimated reading time: 3 minutes & 32 seconds
🍝 BEST SPAGHETTI YOU’VE EVER TRIED: Crypto Winter will not be that cold when you know this
🥬 FRESH LETTUCE ON THE SIDE: Top 5 Crypto News around the web
CRYPTO WINTER WILL NOT BE THAT COLD WHEN YOU KNOW THIS
So, in my previous Crypto Owl’s newsletter I talked about signs you should follow if you want to notice when the bear market is about to end (probably it will stay here for a while, at least that’s what all the signals indicate). But I have more advice to share. So let’s fly straight to it.
Try to plan your steps and asses your options
I understand that this is easier said than done. Because - you don’t know for how long this bear market is going to continue, it's hard to know the outcome (by this I mean there are lots of projects that will fall and won’t survive), no one knows. So you should do your own research, at least for the projects that you’re already invested in. See how they are doing during these difficult times, and if you see any information that doesn’t add up as simply as 2+2, you better start digging and setting things straight for yourself. Don’t be lazy to reassess everything and be ready to make some changes where things start to look shady or unclear.
Also, always keep in mind that new projects are riskier than the old ones. Like, Bitcoin is always more trustworthy than any other new altcoin.
Moreover, in the bear market everything is in danger - not only the new projects. Crypto platforms - even the most popular ones - too. And if they fall, the rest will follow just like in dominos. Watch the signs: some companies are now shortcutting their staff, some freeze an ability to withdraw funds. These are quite the red flags to watch out for, because where there is smoke, there is …
Be cautious and aim to protect yourself, reassess your strategy and make a new plan that you believe would work better than the one you used during the bull run. Times are changing. Adapt.
Use dollar cost average (DCA)
This is a long-term investing strategy that is widely adopted among crypto investors, and for a good reason. It really helps you to wisely allocate your money by dividing and scheduling the payments. It helps to reduce the impact of volatility in the market on the overall purchase.
I wrote a newsletter specifically about that, so if you need more information, you can find it here.
Consider staking
Staking is one of the best ways to make passive income in the long run. There is no surprise that many investors right now are in the red loss zone because of this bear market. But is it all lost?
Actually, even in a bear market, staking might bring you some healthy profits. It reduces the possibility of panic selling that is so common during the bear market.
Move your crypto from crypto exchange
Just like I’ve said earlier, crypto exchanges are not secure either. Because crypto winter could actually harm them. So, it would be wiser to take your money from any crypto exchange you use and move your money to a crypto wallet. And by that I mean cold crypto wallet (paper or hardware), so you’d be safe in any scenario.
Invest in yourself
Maybe it sounds like a cliche, but this period of time is very stressful for a lot of people who just simply believe in crypto. So, if you're unsure about your funds, take them out, relax and start learning. Learning about how markets work, how they are related, learn about finance and all other important things in between. Use this time wisely, so that in the future you’d know more, and be ready for the next bull run.
So, as you can see, all of these advices might seem simple, yet they are proven to be effective during previous turbulent times in the market. Of course, each bear market is different but covering the basics and leaving room to adapt to anything new is what this guide is all about . We should all remember that crypto winter is not going to last forever. Chin up!
TOP 5 CRYPTO NEWS AROUND THE WEB
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Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your own research and act responsibly with your profits.