Surviving the Crypto Winter

To successfully survive cold/winter, you need to do at least two things:

• Generate sufficient body heat by burning food.
• Prevent the loss of that heat with suitable clothing and shelter.

It’s frigid out there if you have some investments in crypto. Most crypto prices are down more than 100% since their All Time High (ATH) in 2021.

I’ll be sharing a few tips for surviving the crypto winter — it’s quite similar to how the body survives in winter too.

But first, let me clarify…dipping crypto prices doesn’t mean the space has just suddenly lost its value.

Asset prices, whether crypto or stocks, are mostly speculative in the short term. “In the short run, the market is like a voting machine but in the long run it’s like a weighing machine.”

Most of the strong fundamentals for crypto projects haven’t changed much:

• Brilliant builders are flocking to crypto, even from Big Tech companies.
• USD deposits on DeFi apps are close to $80 billion right now, which is only 30% lower than the ATH in November.
• Active developer count in crypto projects rose to ATH in December 2021.

By the way, Venture Capitalists invested over $33 billion into crypto and blockchain startups in 2021. And in 2022, it could be more.

So, how to keep warm in crypto winter:

1. If you became a full time crypto trader in 2021, get a job.
2. If you are not a professional trader, don’t leverage your position even if a professional trader recommends it. You’ll freeze!
3. Volatility is high. Don’t get caught in a bull trap. Sharp rise in price doesn’t mean the market has recovered. Sun’s shinning doesn’t mean winter is over.
4. Don’t catch a falling knife. Prices are falling doesn’t mean you should buy just any crypto. It can fall even deeper and you’re left in the cold for years with no recovery.
5. Invest periodically in strong and promising crypto projects. NFTs are the rave now, but they started in the midst of a crypto winter. Decentraland, the biggest crypto metaverse project, was launched in 2018 in the midst of a crypto winter too.