There are two ways to think about investing during a recession: you can play defence or you can take advantage of opportunity. Playing defence means limiting losses and avoiding cryptocurrencies that might not recover. Acting opportunistically means taking advantage of market weakness to make long term investments at bargain prices.Â
🟢 From a defensive standpoint, here are few points to remember:
Make sure you have an emergency fund set aside, so that you won’t be forced to sell investments at the worst possible time. Avoid or reduce exposure to speculative meme cryptos and those that have a lot of hype relative to their unrealistic business promises.
Consider holding some cryptocurrencies in the grow sectors such as Web 3 , Binance Launchpad and Tokenization tokes. As always, diversifying your portfolio with stocks from different sectors is a good way to balance your exposure amongst the industries.
🟢 As far as opportunistic investing goes, bear markets and recessions can provide great opportunities to buy high quality coins. Here are a few ideas to help you out:
Cryptocurrencies that perform well long-term tend to have some combination of industry leadership, competitive advantage, strong value vs BTC value and solid leadership. Bear markets offer us the rare opportunities to buy them at reasonable or even bargain valuations.
It may be tempting to simply buy the cryptos that performed the best during the previous bull market, in the hope that they will return to their previous highs. However, many of the outperformers during the late stage of a bull market are speculative cryptos in a bubble territory. If they were trading on unrealistic valuations back then, there’s a good chance they won’t regain their highs.
Again, it’s not easy to time the market, nor do we advocate it. If a crypto you are interested in is trading at a large discount relative to your estimate of fair value, buying in the FEAR zone ( You should use EngineeringRobo Deluxe for it ) for can be a good way to slowly build a position in it during volatile markets like these.
👉 This way, if its price declines further, you’ve still got more money to put into it, and if its price starts climbing after your first partial purchase, you’ll be glad you started building your position when you did by following the signals.
🤖 To be clear, at EngineeringRobo we believe you should only sell coins after EngineeringRobo give sell signals.
The sell signals will save your time & money & energy!
Example :
👉TRB coin lost over over 45% of its value after EngineeringRobo turned bearish for it on a spot market . After EngineeringRobo turned bearish , we opened a short position in futures market! Result? Over 1800% - 19x Return!
🟢If you are trading & investing in the financial market such as stocks, crypto and commodity markets, EngineeringRobo help you to maximize your return!
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