Cryptocurrency market in decline: 3 things to do to avoid bankruptcy

Spend some time researching

When prices fall, investors tend to follow financial instruments closely, sometimes to no avail. However, it is a good opportunity to do some research. See the article: Opinion on the crypto Cosmos (ATOM): what future and forecast for this token?. It is more interesting to spend time studying financial instruments and strategies adapted to bear markets. So you can make discoveries.

Also consider looking for the instruments that have withstood the decline in the markets the most. It would be possible to add them to your portfolio.

Finding 2-3 gems during the bear market can be life changing

Don’t be anxious about the liquidation of your positions

Managing emotions in a bear market is difficult. According to several experts, this is the most difficult aspect, even for professional traders. See also: JPMorgan: Bitcoin Reveals “Biggest Challenge” in History and Surprising “Fair Value” of BTC Price. People who cannot control their emotions will not be able to profit from their investments.

Examine why prices have fallen, investigate the causes and find your solutions. Evaluate whether your conclusions are still relevant in light of market developments. Rethink your strategy in the short and medium term.

Diversify your portfolio

Invest in a variety of crypto assets for diversify your portfolio.

More than 18,000 cryptocurrencies already exist. No one can say for sure which cryptocurrency will bounce. See the article: 1x Ethereum Gathering! The price of ETH will reach this level by the end of 2022. Find out here how and why?. It is also difficult to predict how long the bear market will last. The one in 2018 lasted 1 year and 4 months.

Furthermore, investor strategies are particularly suited to falling markets. It is in particular the case of the DCA.

If you are in trouble, you may need to scale your positions, which reduces your exposure.

💎 How to invest in EU, US and Asian stocks?

European investors could benefit from over one million trading instruments on Freedom Finance’s Freedom24 investment platform. The platform has transparent and relatively low fees for buying stocks and ETFs, and offers the best conditions in Europe for buying US options – $ 0.65 per contract. Furthermore, Freedom Finance is the only broker in the EU market to offer clients the option to buy new shares at their initial price (IPO).

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

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