Cryptocurrencies: tips for bad times

The big dream of a Lamborghini in the garage, endless “vacations” in election paradise or just financial freedom tempts one or the other to make irrational decisions. No wonder cryptocurrencies are financially crazier than the Wild West. In November 2021, a lot of money flowed into the market, which at the time was worth about $ 2.9 trillion. Today (May 30, 2022) it is “only” a little more than 1.3 trillion US dollars (about 1.2 trillion euros). So the market is more than halved. Everyone who came into the last quarter of 2021 is stuck in the deep red color. And what’s next? Sell ​​and realize the losses? Or persevere and hope for better times? COMPUTER PICTURE explains how to get away with a black eye.

The best crypto apps for beginners

test winner




Stuttgart stock exchange

FTX Pro app


FTX

Binance app


test grade

2.5

satisfying

binance

Coinbase app


test grade

2.5

satisfying

Coin base

Kraken app


test grade

2.5

satisfying

squid

eToro app


test grade

2.6

satisfying

eToro

JustTrade app


test grade

2.6

satisfying

JustTrade

Trade Republic App


test grade

3.1

satisfying

Trade Republic

Complete list: Best crypto apps for beginners

Investigate first …

Those who have invested in alternative currencies are in deeper trouble than Bitcoin investors. While the price of BTC has only halved, currencies like Luna have completely perished. Other coins like Avax or Solana do a little better with a loss of 75 percent. Such coins may come back at the next rally, provided the technology is right and the developers stay on the ball. It is therefore worth looking at the so-called white papers or the roadmap (a kind of development plan) and examining how the technology behind the currency is being pushed forward. Beware of possible collaborations, new features (efforts, bonds, loans, NFTs) or other key factors that can lead to money being pumped back into the coin. In addition, it is worth following the developers on social networks so as not to miss any announcements. If you want, you can exchange ideas with the respective community, for example on Discord or Twitter. It takes time, but it’s worth it.

… so the decision

Some coins have little chance of getting back on track. It pays to realize the loss and pump the remaining capital into projects that have better prospects. But that only applies to projects that are really on the edge, as the Luna coin mentioned earlier. Blockchains like Harmony, Avax, Fantom, Solana or Near can redeem themselves. Those with money left over should buy now while prices are low. However, as the crypto market is very volatile, it may continue to decline. Therefore, investors should never risk their entire capital, but buy piece by piece. Anyone who has no more capital must have particularly strong nerves and take the following advice to heart.

Bitcoin trading at eToro

Crypto investments are managed by eToro (Europe) Ltd. offered and the remand is carried out by eToro Germany GmbH. Your capital is in danger.

Tips for the future

To avoid getting into extreme situations, you should adhere to the following rules of thumb:

  • Do not be greedy: Yes, the feeling of having sold a coin whose price rose markedly the next day is not pleasant. But it’s part of the game. Get profits paid out regularly to have capital in the next crisis. Profits often go faster than expected.
  • Diversify: Hold at least 50 percent of your capital in BTC or ETH. This “protects” you from a total loss. You should invest the rest in projects that have a technological added value like Fantom or One. It is also good if about 10 to 20 percent of the portfolio consists of stack coins.
  • Convert profits to stack coins: If a coin in your portfolio rises rapidly, then it is worth exchanging parts, namely for so-called stack coins. This is an umbrella term for cryptocurrencies that are protected against fluctuations thanks to a special system. These do not increase in value, but they do not decrease either – unlike the other coins. Especially in times of crisis, you can really make money with stack coins. As? Sell ​​your profits, convert them into stack coins in time and wait for the next crash to come in cheaply again.

* Our independent experts regularly deal with products and service providers. We will make the resulting articles available to you for free. COMPUTER BILD receives a small commission if you click on a link or enter into a contract with an affiliated provider. Note: The contents of computerbild.de are not specific investment recommendations and contain only general information. Authors, publishers and the cited sources are not liable for losses due to the purchase or sale of securities or financial products mentioned in the articles. As for cryptocurrencies: These are not regulated and their prices can fluctuate a lot. Therefore, cryptocurrencies are not suitable for all investors. Cryptocurrency trading is not subject to any supervision by EU regulators. Your capital is in danger.

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