- Date : 26/07/2022
- Read: 4 mins
Cryptocurrency investments are giving people a hard time nowadays. But if you own bitcoin, it can be relatively easy if you do these five things.
The recent market crash in the cryptocurrency world has rendered almost all investment strategies ineffective. The past 2 years had a solid uptrend, and bitcoin investing was everyone’s cup of tea when it was breaking records every few weeks, and more people started trading it.
Bitcoin has become the face of digital assets and is one of the most reliable and secure cryptocurrency projects ever developed. With constant bitcoin news all around you that increases your impatience, here are some crypto tips you should know while holding your bitcoin in this crypto winter.
Though this might be hard when lakhs of rupees are at stake, it is an essential thing to do. The only way to make it through difficult times and profit from market crashes is to stay calm.
You'll be constantly bombarded with news about how crypto is dead. However, be patient and hold on to your bitcoins; you'll see the results very soon.
Explore the situations:
Nothing lasts forever, and market crashes are a prime example of this. Bitcoin investing is highly volatile, and there are chances of huge profits and losses too.
The recent market crisis was brought on by the UST Terra coin being unpegged after slipping below its $1 peg. It was a stable coin that had an algorithmic peg to the real value of the US dollar. However, the algorithm failed due to a significant dump. More Luna tokens were subsequently released as a result, which decreased the price. Later, when many users hit their stop losses, the price of the coin fell once more. The markets, which were already largely ruled by fear, were destabilised by a series of dominoes falling one after another.
Multiple factors and situations lead to the cryptocurrency markets, and you should explore all the conditions that can affect your investments.
Believing in technology:
Bitcoin has proven itself time and again. It is not a shady project that is aimed at gaining money from the general public and going away with it. The technology behind bitcoin is pretty solid, and it has acted as the basis for the development of digital assets and other cryptocurrencies.
Bitcoin's volatility makes people think about whether it is good or not, but remember, it has come back stronger after every crash.
Bitcoin is based on blockchain technology that uses blocks to store data on a public network. Everything that is once on the network can neither be erased nor deleted, which makes it the best technology for medical and financial purposes. Many companies have started adopting these networks, and the utilisation of such technology will surely increase in the coming years.
Staking is one of the few things you can do during the crypto winter. If you want regular returns from your cryptocurrency, regardless of how the market performs, make sure to stake the coin. Staking in crypto is similar to fixed deposits in general banking, where you get an assured interest at the end of every specified term. In staking, your principal is protected, and you get added rewards for storing idle coins. That's a win-win situation. No matter which way the market goes, you'll get an assured interest on the coins, plus they are stored safely where only you can reach them.
Storing in a hardware wallet:
If you are a die-hard bit coiner who understands the technology completely and believes in the ecosystem, this is the best option to consider. This crypto winter, buy yourself a hardware wallet and keep your coins in your own custody. Wallets are cheap, and they can be the best way to store crypto when you don't want to trade in it regularly.
Also Read: Ten Crypto Terms You Should Know
Market crashes are pretty common when you invest in cryptocurrency, so do these things today to have an easy crypto winter and emerge as the best bit coiner.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.