We currently are knee deep in the snows of a crypto winter. Panic selling is running amok, bringing freezing temperatures to a once heated crypto marketplace. Rug pulls of NFTs seemingly are a daily occurrence, and downward fever lines are colored red across the board. In this crypto winter, Bitcoin, for example, plunged from an all-time high of $69,044 a coin in November down to a dismal $17,745 this June; Terra – now Terra Classic – was riding high in May but shot down in June to zero; Voyager went bankrupt; and the mega hedge fund Three Arrows Capital (or 3AC) went MIA. It doesn’t get much colder than this, but then again, it’s not over. With a nod to Game of Thrones: Winter is not coming, it’s here! But if you can adjust your mindset for a moment, consider this: A crypto winter – or a crypto bear market – is a great opportunity to “average down,” or get into a coin for the first time. Of course, you need to manage your risk properly but carpe diem during these cold days in crypto. Here are some of my suggestions on how to stay warm during a crypto winter. (Full disclosure: I am not a professional financial adviser. The following suggestions are based on my personal observations and don’t constitute financial or investing advice. Consult a financial adviser before making any investments. To read ZDNet’s full disclaimer, scroll to the bottom of this story.) As for keeping warm during this crypto winter, here are some key takeaways to be aware of:
Never – and I mean never – trade more than you can afford to lose. Crypto can be a great buying opportunity, but you can also lose your shirt. I recommend investing between 1% and 5% of your total portfolio. Dollar-Cost Averaging is a must or you will lose your sanity in a bear market.Don’t panic sell at a 70% loss. You’ll regret it in a bull market. HODL.Finally, winter always ends, and warmer seasons return.
Stay warm, friends. The information presented by the Crypto Coach and ZDNet is not intended to be individual investment advice and is not tailored to your personal financial situation. It does not constitute investment, legal, accounting, or tax advice, nor a recommendation to buy, sell, or hold any particular investment. We encourage you to discuss investment options with your financial adviser prior to making any investments.
