Cryptocurrency prices have hurtled, some crypto projects have gone bust, many companies are struggling and stopped hiring, and the usual “crypto is dead” headlines are hitting the conventional media. Things aren’t looking good.
But those who have been in crypto for a time have seen it all before. Crypto’s exceedingly cyclical, characterized by bear and bull markets. In bull markets, like the one that started in late 2020 and ended in late 2021, prices can rise by duplex digits on a daily basis. During those times, it feels as if the market is fated to go only up. But in a support market, prices may fall 90%, followed by another 90% and so on.
Although the previous crypto bear markets coincided with bullish sentiments in equities, now crypto is with a recession potentially on the horizon.
Take a profit
In crypto, resistance to selling – holding or HODLing – in spite of shadowy outlook is a widespread behavior. No one went insolvent taking a profit.
“For your stability, you may be best off regulate a portfolio-wide stop loss where you say you will sell everything if it gets below a definite amount,” he said. Most consolidate crypto exchanges let users place a stop-loss order either in terms of a percentage drop.
“Set sell targets/take profit levels in advance, at least about, and stick to them. Your impartial self from the past is a better guide than your elated self in the future.
Avoid anxiety selling, but also avoid greed
Taking a payback, and maybe having a master plan to exit the market completely, doesn’t mean panic selling.
“Avoid anxiety selling unless you’re in the distressed need of money, builder of several NFT projects, said. And in review, he said, “being greedy and being scared to miss the top” was a mistake he made in 2018. Make your selling decisions based on data, not on emotion or on guidence from social media.
Most people who invested in crypto in late 2020 saw their briefcase at all-time highs in April or November 2021. But the explosions are behind us.
Leverage is a common tool in crypto markets, but resorting to leverage to buy coins in a falling market “has a much higher chance of decay and will destroy your mental capital,” Cred warned.
Crypto is a place for change and experimentation. Many projects pop up, die, reinvent themselves, succeed or vanish from evocation. Crypto projects often have tokens related with them, and the tokens are often (but not necessarily) tied to the success of the projects, especially during the early days.