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5 TIPS TO MAKE IT THROUGH THE CRYPTO WINTER
Crypto winter is upon us, and, as usual, we get to see the same headlines we read during every bear market: “crypto is dead”, “Bitcoin is going to zero”, “Crypto Ponzi scheme finally collapses”. And the list could go on.
If you have been in the space for a while, you might have seen this happen a couple of times already: prices crashing 90% one day, and another 90% the next. This time around, things have been even rougher, with the collapse of some DeFi staking and lending platforms, which has shown us how much work really still needs to be done.
Another crazy aspect of this bear market is that what is happening with crypto and NFTs is related to a larger macroeconomic crisis linked to a looming recession. Times really seem crazy right now, and problems may seem to be insurmountable.
That’s why, here at Niftables, we decided to give you 5 tips on how to survive these tough times. Don’t forget to follow us on our social media to learn even more about the NFT space!
1 – Dollar cost average and buy the dip.
So, your portfolio value has plummeted to the lowest of lows, and you’re there hearing investors, influencers, and memes screaming at you to HODL and not panic sell. Well, there is definitely something more you can do rather than check the price of crypto every five minutes.
If you still have liquidity or a steady income, you might want to use part of it to ‘buy the dip’: in the words of Nathan Rothschild, ‘when there is blood on the streets, you buy’. The idea is to buy when everybody else is panic selling with the vision that the price will rise in the next bull market and net you a nice profit.
The easiest way to do that is to dollar cost average, or DCA: when you DCA, you’re basically spending the same amount of fiat on a crypto asset on a regular basis, so that buying during a crash will average out your buys close to the top.
You never know when a token has truly bottomed out, so DCAing helps you not to go in all at once at the wrong price.
2 – Diversify your investments.
At some stage in your investing career, you’ve probably been told not to put all your eggs in one basket, and this rings true for the cryptospace too.
The best way to behave, then, is to dollar cost average in different crypto and NFT projects that you have studied and have been following, and believe will go back to their all-time highs in the future.
How do you know which cryptos and NFTs to choose from, though?
Well, checking a coin’s all-time high is a good indicator of the potential of the protocol. Another way of gauging the strength of a token is to see how it performed during previous bear markets. Did the project bounce back better than others?
At Niftables, we will be covering the most important trends in the NFT space, and alert you to some buys that will definitely bounce back in the future.
3 – Don’t panic.
This may seem really stupid advice. Of course, we’re all going to panic a bit when we see our portfolio value shrinking. But if you manage to master your emotions during a bear market, you will reap greater rewards during the next bull run.
Plan your actions in advance and have a buying strategy. It doesn’t matter if it’s as simple as DCAing or buying once a crypto falls below X. Having a strategy in mind helps heaps to avoid panicking and making snap decisions.
It’s a patience game and you want to keep your head as clear as possible, but we promise you will love the following bull market!
4 – Keep your job or… get a job in crypto or NFTs!
If you are new to the crypto and NFT game, and especially in a bear market, you want to keep your non-crypto-related job: after all, there are bills, rent, and other obligations that you will have to keep in mind regardless of how bad your portfolio is doing.
Bear markets are the best time to accumulate, and it will often be very handy to have a job that gives you the liquidity to DCA or learn your chops in trading.
Another great move could be that of getting a job in the crypto industry: if you’ve been following the space closely, you’ll have noticed that some pretty large exchanges let a large number of employees off in the past month.
But this doesn’t mean that there are no job openings in the cryptosphere left. In fact, there are always new projects and start-ups with openings, which might need someone with your expertise.
Many projects begin small during bear markets and are ready to explode during the following bull cycle. You could be part of the next crypto or NFT big thing, and you would be living and breathing crypto day in and day out!
5 – Network, network, network!
It’s sometimes quite easy to forget that behind smart contracts, DeFi protocols and NFT projects, there are actually real people who share your same passions. Joining our socials is a great way to meet like minded people and create new relationships.
The bear market is great for honing your networking skills: there’s a really tight-knit community that exists on Twitter and Discord, and the same people meet at NFTcons and Crypto meetings around the world.
Build relationships, create content on Twitter or IG on what you are truly passionate about. People tend to flake out during bear markets, so often there will be a dedicated smaller group of people who are doubling down on their love for crypto and NFTs, just like we are doing.
This is the best time to build lasting relationships that will benefit you in all kinds of matters in the future. And of course, hanging out with like-minded individuals will also make you feel less lonely in these crazy times!
Have you been following any of these 5 tips already? Which one is your favorite? Let us know your survival tips in the comments. And follow our socials to interact with us and be always updated on the latest NFT trends!
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