Keep Perspective when Crypto's in Bear

Celsius, Terra, Three Arrows... everything is awful, right!?

In times like these, perspective is everything. Should the principles of traditional investments get applied to crypto? It's often debated. For sure, in many ways, we were told that crypto is here to break up that establishment.

Established investment wisdom have never been more important to this young crypto community. Perhaps most important is the myth of market timing. Over the past 100 years, do you know how many have timed the market with consistent success?

These people don't exist.

Hindsight is always 20/20, I know... but whether you were in the market or not: try this crypto ROI calculator and zoom out!

Perspective is everything in a bear market.

So what's the point? Well, can you tell the difference between:

• Gambling

• Speculation

• Investment

Too many in this market cycle have lost touch of the difference. Maybe they never understood it. Sadly, many got their first taste of financial markets amid the stupefied euphoria of a bull trend at the top.

You can believe in an asset and not emotionally attach yourself to its ups and downs. But if you leave investing to your own emotional devices, the system will always wreck you every time given time. It's how financial markets are built.

Even if you got greedy and were somehow wiped out. Heck, especially. Now is a good time to reflect on your Investment Policy Statement (or create one!). Work with an advisor if you like or read up and manage it for yourself. Dollar cost averaging is much safer than investing a lump-sum all at once.

All of this can be applied to crypto exactly as with stocks and bonds.

Most importantly, if you're not just speculating or gambling, a 10 year horizon (or more) is common advice. And when 10 years is your horizon... often times... especially in times like we're experiencing right now... just zoom out.