Investing in crypto during a bear market has its advantages. Here’s how to get around a stagnant market.
The cryptocurrency industry has proven to be one of the fastest growing industries from the start of the pandemic to the present.
Every day there are more people who decide to start investing in cryptocurrencies by opening an account in an exchange or virtual wallet. And, the number of entrepreneurs investing in the crypto market with their new ideas is increasing day by day.
It is estimated that ten percent of the world’s population has invested in cryptocurrencies with nearly one billion people globally.
investing in current market
Currently, we internationally find ourselves in an economic moment of uncertainty. It is the result of various geopolitical conflicts, wars, energy crises, inflation and now, an imminent recession in many countries.
Recently, there has been a significant drop in prices in traditional economic markets. It has also been featured in the crypto market.
The most common question asked by market consumers is, how can we survive the crypto winter? What are the best cryptocurrencies to acquire?
expert opinion
Renata Rodrigues, Global Community and Education Lead at Paxful, says, “We are in a stressful economic time. But it is important for companies in the ecosystem to move out of short-term focus and clean the ecosystem from projects that put people at high financial risk.” Bitcoin has proven itself as a strong alternative financial option and we remain committed to its usefulness.”
Nicholas Tang, Director of Internal Communications Phemex says, “The best altcoins to invest in during bearish conditions are those that are well established and have withstood the test of time. Ethereum is, of course, one of a project. Example that has cemented its position and perhaps even pushed the description of an altcoin. If you are choosing a new coin, make sure you do all the due diligence and research. Promising projects with a long-term vision Have dedicated and talented teams. Ask yourself not only whether a project has utility or is a problem solved now, but whether it will continue to do so five or ten years from now. Don’t be deceived.”
Nicole Pabello, Managing Director of Latum Amber Group says, “Look at the key ones like Bitcoin and Ethereum, from whom we have seen substantial market validation. At Amber we believe in building for the long term. It is very important to us that Our clients understand the natural volatility that occurs within the industry and, in order to prepare for market cycles such as the current one where the price has fallen drastically.”
invest in the right projects
Experts on the above exchanges agree that this is a crucial moment where it is important to invest in the most consolidating projects like Bitcoin and Ethereum.
Rodrigo Torres is the director of Valor Analytica. “An important aspect to note is that if the individual lives in a country with high inflation or high devaluation. They can analyze the option of converting their local currency to a stable currency such as USDC. This gives them a defense against these problems. Allows to make natural defenses.”
Investing in Crypto Winter
The crypto winter has greatly affected the cryptocurrency market. There is no golden rule or magic solution that makes the average investor immune to any market downturn. However, think about these steps before investing.
1. Analyze what type of cryptocurrency I am going to buy
2. Study the project’s whitepaper.
3. Investigate who is behind the projects supporting the cryptocurrency.
4. Analyze the market capitalization of the cryptocurrency.
5. Read the graphs and price variations of the last few months.
Fundamental pillars of the crypto ecosystem such as decentralization and anonymity have begun to replace traditional economic forms.
As the market cap of cryptocurrencies increases, the correction of the crypto market will mimic the decline and correction of assets in traditional financial markets.
However, investing in crypto during market downturns can have advantages that other traditional investments do not provide.
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