Some thoughts and advice when the crypto market is in a downturn

Everyone is strongly affected by the bear market. Things look bad.

Below are some suggestions and discussions about the current cryptocurrency market.

1. Survive.

Generational wealth can also be created in a bear market, but you need to survive to reap the rewards.

• Trade less. Think hard about what you’re buying and why

• Focus on BTC, ETH. Don’t focus on those degen (degenerate) things, leverage and shitcoins

2. We will enter a recession

• Prioritize safe and robust risk management 

• Improve earning power 

We are entering a recession. Now is not the time to make a lot of trades and focus on keeping what you have.

3. Maintain liquidity.

This market may continue for some time. Absolutely do not rush. Over the next few months/year, we’ll be able to buy value coins at big discounts.

Wait for the opportunity. If your currency is locked, you cannot take advantage of those incredible opportunities.

4. Narrative changes.

After each cycle, the narrative usually changes. The winners last time were ETH killers. But the winner who goes to the previous round will not be the next winner. Don’t also invest in past winners.

5. Stablecoins.

Stablecoins are great. But not all stablecoins are equally good. 

• Algorithmic stablecoins

• Fiat/Commodity Backed Stablecoins

• Crypto-backed stablecoins

There are stablecoins in these markets that are more risky. Understand these risks and segment your positions appropriately.

6. The macro matters

• WW3 (World War III)

• Inflation

• interest rate 

Our situation is terrible. Panic is strong. This feeling doesn’t go away right away.

The crypto market is affected by it. Focus on macro factors. Macro factors will determine how things play out.

7. Don’t rush to buy the dips.

Be patient. The macro situation is very bad, don’t take flying knives empty-handed. There will be many buying opportunities in the future. Don’t be in a hurry.

8. Risk management is key.

Everyone is affected. Terra, 3AC (Three Arrows Capital), investors, established trading companies. Even professionals are suffering. If you’re not careful, you’ll be the next victim. 

• Don’t degen trade 

• Do not pick up flying knives empty-handed 

• Don’t leverage

• Reasonable allocation

9. About L1s Altcoins. 

Everything is developing with ETH and BTC. L1 altcoins were the hottest topic in the last bull run. Often the narrative changes each cycle. I don’t pay attention to most L1 altcoins because most L1 altcoins don’t make it. Find the next new thing, stay fluid until then.

10. Learn to think independently. 

In this market, only original thinking can make you money. During this time, you learn to think for yourself. Don’t take what CT (Crypto Twitter) says too seriously.

11. The crypto industry information on Twitter is pretty negative right now.

Learn to think for yourself, pure pessimism and disappointment is useless, learn to discern the information on Twitter. Take a break and do something more constructive – reflect, learn, start new things.

12. Get involved.

This is a great time to learn cryptographic skills (programming, design, etc.). Start new projects, build new things, do some crypto industry work. Only hands-on practice can help you understand better. You can refer to this tweet @FusePass

Just say that. Hope these tips and discourses about the crypto market will help you.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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