Even the best of seasoned experts may be caught off-guard with the twists and turns that occur in crypto marketplaces! According to this webpage they are familiarizing the crypto and some benefits of it during this term and also making investors worry about what to do next! A millionaire could lose it all, while a beginner could gain it all! Naturally, you are highly confused about how to tackle such situations.
Nonetheless, it is possible to avoid market crises via well-thought-out strategies. They should suffice to make you confront the dark winter, and enter a shining summer!
Stay Away from Highly Unstable Altcoins
Whenever you hear of an economic downturn at the global crypto marketplaces, rethink your existing position. Find out which assets are suffering the most from volatility, and avoid them.
True, you are new to the business. However, you may always seek expert advice. Then, you will realize that you must investigate new NFTs, meme coins, and rebase projects, before you ‘touch’ them.
To illustrate, check out how many developers have become involved in the setting up of each protocol. Is the blockchain network showing as much activity as it should? In other words, do not allow alluring marketing ads or fantasy promises, to grab your attention.
Engage in DCA
DCA refers to dollar-cost averaging. Here, you purchase an asset in bits, over a certain period. This helps you to spread out the pricing, thereby avoiding the changes induced in pricing through volatility.
At the same time, do not be in a hurry, even if the projects appear fundamentally sound. Wait until the hue-and-cry has died down, before making a move.
Your DCA must aim at projects displaying engaged communities, and active development. There must also be a roadmap in place, to show how the project will progress in future.
Opt for Staking
It is a wonderfully simple way to enhance the value of your long-term portfolio. This way, you do not have to agonize over daily fluctuations in pricing. Instead, whatever asset you have staked, continues to accumulate tokens.
Layer-1 protocols are generally amenable to staking of their native tokens on their respective blockchain networks. For example, Cardano ADA, Solana SOL, etc.
Other staking options include gaming protocols, and NFT marketplaces. Select a good project, make your stake, and relax!
Select Healthy Crypto Ecosystems, with Benefits
As a token holder, you may earn well even in a bearish market. The pathways include borrowing, staking, airdrops, and liquid stacking.
If you opt for staking, you will see your tokens increasing in number. Other platforms include NFT marketplaces, protocols providing airdrops to the members of various communities, and token launchpads.
To illustrate, the Cosmos (ATOM) network is a protocol, which offers rewards to early adopters. It also has several projects, which come together via the Inter Blockchain Communication Protocol (IBC).
Similarly, investors, who have put their stakes into ATOM have received rewards of airdrops. These airdrops belong to projects that come into play within the ecosystem itself. The idea is to encourage their respective communities to bootstrap activities. Investors connected with Osmosis (OSMO) decentralized crypto exchange, have also received benefits in the form of airdrops.
Pay Attention to Self
It is important to keep updating your knowledge about the cryptocurrency world. Only then, will you be able to handle everything to your advantage. Therefore, before investing in cryptocurrencies, spend some time on investing in yourself, too. It is the best thing to do when the marketplace is facing more downs, than ups.
Otherwise, you might make the mistake of selling out immediately, as soon as the prices go down. Remember that the situation will not remain the same always. It is bound to change, albeit after some time. Hasty actions can make you lose out on future gains. Therefore, be patient. Explore new avenues of garnering wealth, too.
When the markets are following a bearish trend, digital currencies do not remain static. They still move towards mass adoption. In turn, the blockchain sector displays an increase in the number of jobs. Therefore, it would be worthwhile to explore the various sectors in the crypto marketplace.
To conclude, when you learn to differentiate between bullish and bearish trends, you are on the way to becoming a seasoned investor! You will learn to garner profits, and limit your losses.
