I invested in crypto for the first time in June last year. So if you are anything like me, you are probably a tad overwhelmed by the severity of the crypto market crash. No thanks to all the gurus’ predictions that BTC would soar to $100k at the end of last year. They raised our hopes but were caught off-guard like the rest of us.
This year has not been kind to us. Inflation is soaring; war is intensifying; and crypto has not decoupled from the stock market like it was supposed to be. Prices are crashing, and it seems like we have not even seen the bottom yet. You are understandably anxious, as am I. What should we amateur investors do? I have been asking around, and here are some suggestions from more experienced investors who have weathered similar storms before.
- Continue to DCA and buy the dip. To prevent yourself from falling prey to FOMO, don’t go all in at the first instance of the market dipping. Spread out your fiat so that you have the ability to take advantage of subsequent dips. Until you run out of fiat, that is.
- If you know that you cannot stomach the volatility, perhaps stick to Bitcoin and Ethereum, which are bestowed with the title of blue chips of the crypto world. Avoid all altcoins, even stablecoins. I’m sure you all know that UST was depegged recently, which caused its price to tumble downwards. Just the day before, this algorithmic stablecoin was hailed as the darling of the crypto space. This goes to show that no matter how promising an altcoin may seem to be, its price is not a guarantee.
- Zone out and stop staring at the charts multiple times a day. You are bound to make yourself depressed. Engage yourself in hobbies. Go out for fresh walks. Stay emotionally detached from your portfolio. (But continue to read my articles, all righty?)
- Delete all crypto apps if you know that you don’t have the self-discipline to refrain from looking at the charts. The saying “out of sight, out of mind” still remains pertinent here.
- Remember yourself why you are investing in crypto. Having aspirational goals reminds you that you are invested for the long term. For instance, I want my son to inherit my Bitcoin. So, it doesn’t matter if the market plunges because my mind is gleeful with delight in regards to how he will enjoy a head start in his investing journey.
- In the most extreme scenario, just do nothing. Leave your portfolio as it is. (Hopefully, you have previously invested with money you can afford to lose!) Don’t add or subtract from it. Let time ride the storm out.
These are some things I will hold dear to my heart as this current bear market may last for 2-3 years. Who knows?! Stay safe and sane, my friends.