Stay Cozy During the Crypto Winter With These 5 Toasty Strategies
Do you have bags under your eyes by eyeballing your crypto portfolio 24/7? Do your insides judder like a roller-coaster ride whenever you contemplate the plummeting charts? Have you been cursing yourself (or someone else) for investing rashly in the crypto market?
If you are nodding vigorously, let me tell you that it is just winter, not the apocalypse. The scores will rise again at a CAGR of about 17% in the near future. Scrambling for survival without going insane? Read on to explore these 6 strategies that will keep you toasted during the temporary freeze.
1. Keep Diversifying Yourself
The difference between a Whale and a Paper Hand is research. Consider this bearish as a blessing and concentrate on restructuring your portfolio. You can compare various cryptocurrencies to determine your next meaningful step. Alternatively, fluctuate your interests between investing and creating. Crypto is a vast market where you can have more than one income stream.
Pro Tip: Take a break from the down-going charts. Delete your profile app for a while to reframe and maintain your sanity.
2. Make DCA Your Friend
Did you know that gliding at a snail’s pace would benefit you furthermore during the bear market than getting your skates on? It is the best strategy to increase utility in a volatile market such as cryptocurrency. Embrace Dollar-Cost Averaging(DCA) by investing small, regular amounts regardless of the trends. It is a long-term strategy that will reap humongous gains.
3. Buy and HODL
Remember how you condemned stockpiling months back? Rest assured, HODLing cryptocurrency is wiser than hoarding toilet paper! In fact, buy-and-hold has been around for a long time. It surpasses a number of modern blueprints. You can merge DCA and HODL to erect a personalized survival model that will sail you through the icy bearish.
4. Use Cold Wallet
You might wrinkle your nose at this because cold wallets are expensive. But they are great to keep your crypto coins secure. Cyber security is the second biggest concern of every crypto investor these days. Switch to the hot wallet once FUD changes to FOMO, but for now, keep your assets close to your chest.
5. No Revenge Trading
You may feel high-octane to pound at the ‘Buy’ button, but it is lethal. The loss figure for rebound trading in a bear market is significantly higher. Frustration at the nosediving graphs might tempt you towards the fatal gambling mindset. However, venturing into such a volatile field without ample knowledge is foolishness.
Refer to the pro tip above (Patience), and watch the show from the sidelines.
To Sum Up
Crypto winter has stretched longer, but you can breeze through. Keep sanity and variegating tactics top-list. Take charge by combining DCA and HODL and giving a wide berth to revenge trading. Additionally, invest in a cold wallet. So, put your hands out to stay warm amidst the cold. Share your opinions with me in the comments.
