Crypto Winter : Is This Your First ?
Crypto winter has blanketed the year 2022 with a deep snow pack and left crypto investors shivering in the cold and anxiously awaiting the warm sun of the next bull run.
Bitcoin and Etheruem are both down over 70% off their highs. Q2 also happened to be the worst quarterly performance for Bitcoin in more than a decade and Ethereum saw it’s worst quarter ever.
Many cryptocurrency exchanges have announced hiring freezes and layoffs . Shares of Coinbase have fallen 86% off their 52 — week highs.
The moon boys of 2021 have gone silent and many have declared bitcoin dead once again. The talk instead is of 3AC , Celsius , Voyager and the LUNA collapse.
It’s easy to see how many entering the crypto space in late 2021 have gotten discouraged and thrown in the towel as any investors who purchased Bitcoin in the last year are under water.
Is all lost ? Not for the faithful !
If winter is here can spring be near ? It may be too soon to think about spring as this winter could last for another year or more but this is the time to prepare for the next bull run.
Read crypto news but do not become fixated on charts. Constantly monitoring charts will not change our paper losses but it could instead lead to emotional decision making that will most likely be regretted when the market begins to reverse.
Keep your crypto keys in a cold wallet. The recent bankruptcy woes going on in the crypto industry are reason enough to be proactive and protect your assets by using a hardware wallet. Are you willing to roll the dice and gamble that your crypto is safe on an exchange ?
Dollar cost average. DCA is a tried and proven strategy. Making smaller incremental asset purchases on a schedule regularly helps to reduce your level of risk and also helps to minimize chart watching and making emotional choices. Some exchanges will provide automated dollar cost averaging.
Exercise patience . Crypto winter can last longer than expected and mentally test even the most steadfast believers. Understand that the market could drop even further or trade sideways for another two years or more.
Take time to reflect and plan for the next bull run. Will you take profits regularly with sell limit orders ? Will you HODL ? Will you be diversifying your portfolio ? What are the tax implications of crypto strategy ? All these questions should be a part of your decision making process prior to the next bull run.
Take care of your self. There’s no better time than a crypto winter to step away and find a new hobby , take a road trip or get together with friends . Let’s face it , the fact that crypto trades 24/7/365 can be mentally exhausting at times and you need to give yourself a break.
If winter is here can spring be near ?
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