Over the past few months, there has been speculation about the possibility of a cryptocurrency winter. We talk about this phenomenon when the values of cryptocurrencies drop and stay very low for a long period of time.
The Bitcoin price It has lost nearly 55% of its value since the beginning of the year and 70% since hitting an all-time high of $69,000 in November 2021. After hitting a high of $3 trillion in November, the total cryptocurrency market has fallen below a trillion. dollars in mid-June.
The crypto winter still on people’s minds occurred in late 2017 and early 2018, when bitcoin plunged as much as 80% from its all-time high of $19,000. It was almost a year and a half before the first cryptocurrency regained its colour.
How to survive a potential cryptocurrency winter?
according to William LutherProfessor of Economics at Florida Atlantic UniversityThe important thing is to take a long view. If you believe the asset is valuable and expect its adoption to increase in the future, the decline can be considered temporary. And spring will come soon!
It is safe to say that most of the most popular cryptocurrencies are based on concrete technologies that provide solutions for the future. So we can always count on them going up in the long term.
Also, when investing in riskier assets, the rule of thumb is to only use money that you are willing to lose. A market crash could jeopardize your long-term ambitions if you get cryptocurrency with the money you need to achieve other goals. You may also have to sell your assets at a loss if you cannot wait to recover the values.
Diversification in the cryptocurrency sector is also important. The Buy and hold It is not the only way to achieve capital gains. There are savings, storage, and yield farming that allow you to earn passive income. However, to do so, not all platforms are created equal when it comes to these types of investments.
Queen House For example, it is distinguished by its ease of use and the support it provides to investors, as well as to companies that wish to take advantage of new methods inInvest in cryptocurrencies during a prolonged contraction. This French-regulated cryptocurrency exchange also offers 5% interest on Livret Crypto, a revolutionary savings product that is more beneficial than traditional savings accounts.
This text does not constitute investment advice. Do your own research and only invest money you can afford to lose.
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- For the purchase of cryptocurrencies in the SEPA region, Europe and French citizensvisiting Queen House
- To buy cryptocurrency in Canadavisiting bitbuy
- To generate interest in your bitcoinsGo to the website of BlockFi
- To secure or store your cryptocurrencyGet the wallets Arbitrage where Trezor
- To trade your digital currencies anonymouslyInstalling the application NordVPN
To invest in cryptocurrency mining or masternodes:
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