The crypto market has been in a downward spiral since the beginning of the year. Almost all of the cryptocurrencies are trading at their lowest price in years, and people are starting to get nervous about this new market.
However, there are things that you can do to survive crypto winter and come out stronger on the other side. In this guide, we’ll cover everything from diversification strategies to emotional management tips so that you can enjoy a successful experience as an investor no matter what happens next!
What is crypto winter?
Crypto winter is a period of low prices in the cryptocurrency market. It’s a normal part of the crypto cycle and can last for months or years. Owing to the crypto market’s deflationary nature, it has always recovered. Indeed, while it may seem like a bad thing, crypto winter is actually not as bad as it sounds—it’s just another stage in the evolution of the market.
The current one has been going on since the beginning of 2022 and shows no signs of stopping anytime soon, but there are still plenty of reasons to be optimistic about your investments even if prices are down!
The bear market gives you time to hone your skills.
When you’re going through a bear market, it can be hard to be motivated. But the good news is that this period gives you an opportunity to learn more about crypto.
Instead of spending your time on social media looking at memes and funny videos, use that time to learn more about blockchain, how it works, and the variety of opportunities the technology offers.
Learn how to trade cryptocurrencies. A lot of people consider trading cryptocurrencies as one of their primary sources of income when they enter into this industry. However, not everyone who wants to make money in crypto knows how they should go about doing it or what steps they need to take first before starting out on their own journey toward success.
Look for new business models in the crypto industry and Diversify your portfolio
It is a good idea to find new business models in the crypto industry. When you have an existing business model, it can be difficult to switch from one to another. But when you look for new opportunities, you can find something that may already be profitable and just needs some investment in order for it to take off.
You should also diversify your portfolio. This means that you should invest your money in multiple different places rather than just one or two things. If something goes wrong with one of your investments, then at least other parts of your portfolio will still be safe and sound!
Take advantage of the lower costs.
If you are an investor who has been holding off on investing in crypto because of its high prices, now is the time to take advantage of the lower costs. The market has seen a dramatic decline over the past year, but it’s still an opportunity to buy into new markets and expand your portfolio.
For example, if you want to invest in BTC but don’t have $10K lying around to purchase at once, consider buying fractions with different coins or tokens like $100 worth of LTC with 2% fees (3% total), which will cost under $90; then add another $100 worth of BNB (BNB) at 2% fees ($2) plus 1 BNB (~$0.0005).
This second transaction will cost less than $1 with no additional fees! Now you have both BTC and BNB—and even though this may not seem like much right now as an investor who owns thousands of dollars worth of each coin/token, the growth potential for both BTC and ETH/LTC will come back sooner rather than later!
Finding new partners
Another way to survive crypto winter is by finding new partners. If you’re not already working with other blockchain companies, now is the time. Find people who are facing similar problems and collaborate with them on solving those problems together. Maybe one of your products could help solve their problem, or vice versa—if so, it’s worth exploring a partnership that allows you to cross-promote each other’s services or products.
Furthermore, don’t just limit yourself to collaborating with other cryptocurrency development teams; look for partnerships with other businesses as well!
If your product has any non-crypto applications or features that could be marketed internally in another industry (e.g., if you have an accounting app that also helps manage client contracts), then reach out to companies in that industry and see if they want to partner up so they can utilize some of its features themselves!
HODL
When the market is going up, it’s easy to be happy and say that you were an early adopter. But when the markets go down, no one wants to admit they bought at a high price. The HODL meme originated in the Bitcoin community during a time of extreme volatility in 2013-2014. It was a reminder for people to hold on for dear life through all of the ups and downs of this new technology.
The HODL meme became popularized when an anonymous user posted this on bitcointalk:
“I AM HOLDING ON TO MY BITCOINS NO MATTER WHAT THE COIN WARMING IS A FACTOR IT DOESN’T MATTER I AM GOING TO KEEP MY BITCOINS NO MATTER HOW MUCH MORE THEY COST!”
Services like those offered by ClubSwan are designed to help you in your HODLing endeavor.
Investing in crypto what you can afford to lose
It’s important to remember that investing in cryptocurrency is a risky venture. Investing more than you can afford to lose can lead to disastrous consequences if the market turns south. While it’s tempting to put everything into crypto and wait for it all to come back, don’t do it unless you’ve got enough money set aside for your own emergency fund and retirement savings.
If you’re new to investing at all, consider starting small with just one or two coins that interest you most—rather than going all-in on a single project or token sale (AKA an ICO). There are many factors besides price that determine whether an investment will be profitable over time: technology, team members, advisors, and partnerships are just some of them.
Manage your emotions
When your investment strategy is based on emotion, it can be easy to lose money. To avoid this, keep yourself grounded and manage your emotions by:
- Being realistic about the risks of investing in cryptocurrency. If you’re investing for retirement, don’t think that cryptocurrencies are going to make up for lost time or fill the gap left by other investments like gold or stocks. If you’re going to invest in bitcoin or another altcoin with hopes of making a quick buck, consider how much money—and time—you’re willing to lose before deciding whether this is really something worth risking all your savings on.
- Not panicking when prices drop too low (or rise too high). When prices fluctuate sharply from day to day, it can be hard not to panic and sell at the worst possible moment; but if you have confidence in your investment strategy and believe in its long-term potential then don’t give into fear. Conversely, there will inevitably come a day when prices skyrocket unexpectedly (this happened very recently when Bitcoin exploded), so remember not to get greedy just because things seem better than ever! Most importantly: don’t buy high and sell low! It may feel good at the moment but what’s more important? A short-term gain from selling off some coins now? Or holding onto them long enough for their value to rise significantly later down the road? The answer should always be clear here!
Keep moving forward!
If you’re going to make it through this crypto winter, you need to keep moving forward. It’s easy to get discouraged when a coin that was once worth $1 drops down to $0.50, but remember that the market fluctuates constantly and there will be ups and downs along the way. You can control your own actions, but you cannot control the market.
If you lose money in crypto, remember that it happens all the time, and don’t let it drag down your enthusiasm for investing in cryptocurrencies as an asset class or technology platform. If one project doesn’t work out for whatever reason (and most of them won’t), there are plenty more where that came from—but only if we continue moving along with them!
Finally: if things go well for us? Don’t get complacent! We still have a long way before cryptocurrencies go mainstream—as do all industries experiencing exponential growth—so let’s stay focused on what really matters here: building out the infrastructure so others can reap its benefits too!
Moving forward, it’s important that you keep your head up and continue investing in the crypto industry. While the market will always have ups and downs, there is no doubt that cryptocurrencies are here to stay. As long as there are people who believe in this technology and its ability to change the world for good, then we can expect more bull runs in the future.
