Strategies to deal with falling crypto prices

Now at the beginning of 2022 the price of crypto is experiencing a significant decline, bitcoin which previously touched the figure of around $65,000 and now has dropped to around $36,000.

But regardless of whether crypto prices are going up or down, the strategy I will explain will be very useful and beneficial for all of us, especially when we know that crypto prices are indeed experiencing a decline in the long term.

For those of us who are new to crypto for 1 to 2 years finally, maybe you will be surprised by the decline this time, why can the price of crypto go down by 40%, then what if the price of crypto continues to fall, then surely everyone who invests will lose, get rid of all those thoughts.

So this is how it is compared to other assets such as Stocks, Funds, or Gold. The price of crypto assets such as Bitcoin, Etherium, Bitcoincash is known to be more volatile, meaning that when the price drops it can be very sharp and also when the price increases it can be very high.

For all of us who have been familiar with crypto for more than 3 or 4 years, we shouldn't have been too surprised by the sharp drop in prices, because this 40% drop in prices is not the first time, in fact the price declines have been much sharper before, but of course It's just that after the decline phase, crypto prices rise much higher than their decline, it can reach hundreds to thousands of percent.

Maybe some of us still remember, what the excitement of Bitcoin was in 2017, 2017 was indeed very special for the crypto world, because for the first time the price of Bitcoin could touch the $18,000 mark and become a topic of conversation around the world, until it got into news like TV, newspapers. and also invite comments from various parties.

Just imagine the price of Bitcoin which was $700 in January, only in a period of 1 year it can skyrocket to touch the price of $ 18,000 in December 2017.

Now we must be thinking, can crypto prices fall drastically again over the years?, So if crypto prices fall again, what steps should we take?, should we just endure it and wait for 2/3 years for the price to rise again?, or is there another strategy that can be done in the bearish phase?, a phase where crypto prices have been declining for several years.

This time I will explain 2 points, especially for those of us who are new to crypto for the last 1 to 2 years.

First point

• can the price of crypto go down for years.

Second point

• If for example the price of crypto goes down for years, what should we do.

I will discuss for the first point, the answer to the first point is very likely crypto prices will fall again over the years, the reason is simple because price declines that have occurred for several years or bearish periods are patterns that have occurred several times in the crypto market over the last 13 years .

For the answer to the second point, which is maybe not today, not next month, or even this year, but sooner or later the same pattern will most likely happen again, now the most important thing is how we prepare a strategy if crypto experiences a Bearish period or Winter period up to several years.

In general, there are 3 strategies that we can do during a bearish period, where the choice of this strategy should be matched with our busyness and crypto playing style.

First strategy

• Keep our crypto assets in the safest place, this strategy is perfect for investors who have the patience to wait for crypto prices to rise again in the next few years.

Second strategy

• Doing two-way, long and short trading, where we can get profits when the price of crypto assets is going down, with a two-way trading mechanism, the lower the price of crypto assets, the greater the profit that can be obtained.

Third strategy

• Make our crypto assets work, this strategy is suitable for those of us who don't like trading, but try to maximize passive income from crypto.

I will explain in more detail for the first strategy, which is to save or hold crypto and forget it until the market goes up again, it looks like this strategy is very simple, but you could say this strategy is very powerful, why is it said to be very powerful, the first with The save and forget strategy avoids us from mental and psychological burdens during the bearish market period down to years which may make our mood up and down because of watching the ups and downs of market prices.

For those of us who are investors, the type of people who are more patient and don't like to see aggressive market fluctuations, this save and forget strategy should not be taken lightly, because there have been many studies that have proven that the assets of those who use this strategy can actually far exceed those who are trading every day.

Now where can we store crypto assets that are safe for years, of course there are several alternatives, the most ideal store of crypto assets is in an offline crypto wallet using a hard wallet or cold wallet.

A detailed explanation for the second strategy, namely doing two-way trading, where we have the opportunity to make a profit, even when crypto assets are experiencing a decline, this strategy is very suitable for those of us who are more active in trading, not the passive type and patiently waiting for the market to move up again , a mechanism like this is commonly referred to as short selling.

A detailed explanation for the third strategy, which is to make our crypto assets work, this strategy is perfect for those of us who want to generate maximum profit in the crypto market, even though we are not actively trading and don't see market prices every day, for example by doing farming and staking.