Crypto winter: 2 tips to properly prepare for your hibernation

Keep calm, reversal is never far away

Staying calm is what animals do who want to get through the harsh winter without a hitch!

β€œIt looks like we are entering a recession after an economic boom of more than ten years. A recession could lead to another crypto winter and could last for an extended period of time.” > #Bitcoin

The best thing for investors to do right now is to try to look at the situation objectively. When the value of your portfolio collapses overnight, you must avoid sinking into choices dictated by emotion. This usually leads to regrets later.

It’s important to get back to your goals (if you had any). Why did you start investing? If you had a long-term view, then the recent drop in cryptocurrencies is just an opportunity to buy promising tokens with huge discounts.

If you intended to make quick wins, then it’s more complicated, because the rebound may not happen V-shaped. Especially since if you want to catch up quickly, you will be forced to trade derivatives (options, futures and CFDs) which are more difficult to negotiate.

Choose trusted trading platforms

The choice of platform is important (well before a potential crisis). The cryptocurrency platforms are not immune to the crypto winter. Celsius, a lending platform, quickly found itself in dire straits in mid-June and temporarily blocked withdrawals as Bitcoin hit yearly lows. Likewise, Coinbase and Gemini were forced to cut staff.

So if you are trading with a flimsy centralized platform (CEX), you risk losing your funds, this time not because of the market, but because of the platform failing to hedge adequately.

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Be vigilant and consult your financial adviser before making any investment decision. Mirror-Mag cannot be held responsible in the event of bad investments. Before using any third-party service, you should do your own research.

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