Six Things to Remember as Crypto Winter Temperatures Fall Below Freezing
I won’t sugar coat it – this is brutal. There’s nothing I can say here now that will turn the markets around. We outlined in our newsletter on Tuesday one of the major and latest driving factors in this downturn. However you break it down though, we are deep into crypto winter, and the temperatures seem to continue to fall.
For those of you who are new to crypto and experiencing your first winter – buckle up. For seasoned vets like us, try to remember these six items that we have learned over years of experience in these markets and in this movement. Here are the six things to remember during crypto winter.
1. The belief is in the tech not the current price of the digital assets – If you liked BTC at $60k, there’s no reason not to like it at $30k. In fact, you should like it even more. Not including LUNA and the terra ecosystem (we’ll address that shortly), the fundamentals of these digital assets didn’t change overnight. Of course, developers are constantly changing and working to improve their projects, but if you believed in their vision and their ideas 6-12 months ago, now you get a chance to buy into that vision with them, just at a ~75% discount basically across the board. Not to mention, the exposure of these flaws are viewed by bears as reasons to invalidate the industry – we view it as growing pains and part of what makes the technology more effective in the long term.
2. We are still early – This one’s easy. Regulation still hasn’t fully formed. Institutional money and astute investors are still largely sidelined as a result. CNBC just reported as of March 31, 2022 that only 1 in 5 Americans have invested in or used crypto. Most people still don’t understand why NFTs have value (check out our newsletter on NFTs). We are still early.
3. Stick to your plan – There’s a reason at Blockstar we don’t provide technical analysis or daily trades in crypto like some folks do. We won’t ever try to “pump our bags” or make a quick buck. We’re in it for the long haul. We’re passionate about the tech, the people, and the industry. We advocate and advise all our clients to dollar-cost average, buy and HODL. We don’t believe anyone can predict the price today, tomorrow, or 10 years from now. We just know we strongly believe that with technological advancements and proper education, general adoption will come and price appreciation will follow. We won’t stray from that belief because of a downturn – we’ve seen this before and we expect it to happen at some point again.
4. Don’t risk more than you can afford to lose – This follows up nicely to the last point. If you treat the crypto markets like a casino, you’re probably going to lose eventually. Some people make a ton of money overnight in crypto. You’ll hear about how much money they made and how quickly they made it. However most do not. There’s a ton to be wary of in crypto, and if you gamble, you risk losing. Don’t gamble.
5. Consult those that you trust, be wary of those you don’t – In a time like this, it can be extremely helpful to engage in communication with others in the crypto community. The best part about crypto is the people. We all understand that we are in this movement together and our success as a whole hinges on growing the movement. Plenty of people are willing to converse online about crypto and talk about what’s happening. This can be helpful and comforting in a time like the present. With that said, there are always bad people in all places, crypto is no exception. There are plenty of bad actors who will look to take advantage of high running emotions. If you don’t trust someone, or someone tells you to send them your private keys to get some money back – don’t listen. Feel free to reach out to us on twitter (@blockstar_adv) or email at info@blockstar.com if you have questions!
6. Lastly, and maybe most importantly, stay positive – If you follow the steps above, when the next crypto winter comes, you’ll be more than prepared to withstand it. At that point, the last thing you need to do is remain positive. We’ve seen a few of these before, came out of them alive and better, and have no reason to believe this time will be any different. However, we also understand that some people may not have followed the above steps and have lost fortunes, as is the case with many people in the LUNA ecosystem. Just remember, you are not alone. Try to remain positive for the long haul and if you need help or someone to talk to, please seek it. We know these are trying times and hope everyone comes out of this feeling better than they do now. Better days are ahead, as are more crypto winters. If you remember that, you’ll never be down.