Crypto winter survival guide: Community shares game plan for the bear market
From dollar-cost averaging to managing your risk tolerance, community members share their advice on what to do during a bear market.
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Crypto newcomers are troubled about deciding their next move as the market becomes unpredictable. Because of this, crypto community members handed out their advice to those trying to navigate through the cold crypto winter.
In a Twitter thread, nonfungible token (NFT) collector and trader Krissyos highlighted the importance of having a survival mindset during this time. According to the NFT collector, crypto and NFTs will “soar in the future.” However, Krissyos believes that many current projects are bound to fail.
Because of this, the trader noted that the top priority must be figuring out one’s risk tolerance, or the amount you are willing to lose, and dollar-cost averaging, which “restricts your potential upside to mitigate possible losses.”
Bobby Ong, co-founder of coin information site CoinGecko, shared that finding new potential projects and trying them out is one of his favorite hobbies. Quoting a tweet with a list of upcoming projects, Ong wrote that getting in early often becomes rewarding.
For long-time Bitcoin (BTC) and Ether (ETH) holders, Ong said that multi-year market swings will not make much of a difference. Ong advised these types of traders to spend quality time with friends, family and themselves.
3/ If you are a long-term BTC/ETH holder, multi-year market gyrations won’t make any difference, so go spend quality time on yourself, family, and friends. Go for a jog, cycle, hike. Improve yourself technically and socially. Spend time with family. The market will still be here.
— Bobby Ong (@bobbyong) June 12, 2022
On Reddit, user Kuzkokronk emphasized the importance of buying Bitcoin during this time. According to them, if community members are not purchasing BTC at this time, they will regret it “5 years from now.”
Crypto trading platform Gemini recently announced the layoff of around 10% of the company’s staff. In an announcement, the company’s leaders cited the “crypto winter” as one of the reasons for the move. On the other hand, digital asset exchange Coinbase also announced that it will take a breather on hiring and examine its headcount.
Meanwhile, Sam Bankman-Fried, CEO of FTX exchange, explained that the firm will not freeze hiring and will “keep growing” despite the current market conditions. Bankman-Fried noted that they will not be scaling back but will rather “keep pushing forward.”