Donald Hancock's How to Survive a Crypto Bear Market post first appeared on Benzinga. Visit Benzinga for great content like this.
The cryptocurrency industry can be an unforgiving place, especially for newbies. At first glance, the cryptocurrency market resembles the stock market. But if you dig deeper, there are clear differences.
One of the key differences is the importance of personal accountability and the lack of a safety net. All you have to do is open a brokerage account on the stock exchange, fund it and start buying shares. The security of the shares you buy is entrusted to the stockbroker. Since the Securities Investor Protection Corporation (SIPC) covers investments in brokerage accounts, this step can be taken without risk.
Conversely, some cryptocurrency exchanges have some form of insurance, while others do not. It's up to every investor to examine every exchange for hedging and to decide whether the risk of keeping their assets on the exchange is bearable.
Consequently, the safest course of action is not to accumulate significant amounts of money. But it arouses more interest not only in personal responsibility, but also in education. Read the section below for more details.
- Lessons from human rights: not your key, not your crypto!
- A high-profile crypto blunder
- Is there an easier way?
- Where can I get free crypto lessons?
- How to survive a cryptocurrency bear market
- strategy
- moment
- patience
- education
- Is it a good idea to trade cryptocurrencies during bear markets?
Lessons from human rights: not your key, not your crypto!
Unfortunately, too many people are blindly jumping into cryptocurrency and trying to learn. Especially during a bull market, when retail investors are drawn to rising prices, they are forced to rush. This impatience exposes many investors to unnecessary risk.
Lack of knowledge about cryptocurrencies or the habit of buying common stocks lead to currency exchanges with many cryptocurrencies. These investors are at risk of unknowingly losing all or part of their cryptocurrency. This situation can be caused by a hack or a complete failure of the exchange. As history has shown us, this can also happen with cryptocurrency lending platforms.
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Founded in 2014, Ledger has grown into a fast-growing company developing infrastructure and security solutions for cryptocurrency and blockchain applications for businesses and individuals. Born in Paris, the company employs more than 130 people in France and San Francisco.
With 1,500,000 ledger wallets already sold in 165 countries, the company aims to enable a disruptive new class of crypto assets. Ledger has developed a proprietary operating system called BOLOS embedded in a secure chip for its line of wallets. To date, Ledger is proud to be the only vendor on the market to offer this technology.
- ERC-20 token
- All experience levels
- Easy to install and use
- It supports more than 1500 different digital assets
- proof of damage
- Laptop
- Battery with a long service life
- Bluetooth connection function
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ZenGo is the most secure crypto wallet on the web3. With MPC technology, ZenGo eliminates the weakness of requiring private keys and makes it more secure than traditional crypto wallets. Zengo 's simple recovery process makes it easy for anyone to access their cryptocurrency anytime, anywhere. Thanks to Zengo, MPC technology previously reserved for multi-billion dollar institutions is now available to the average cryptocurrency user.
Zengo was developed by Kezen Networks, an Israel-based company specializing in the development of blockchain products with a focus on user interface (UI) and security. Founded in 2018 by Gary Benatar, Auriel Ohion, Omer Shlomovit and Tal Beiri, the Zengo project has raised $20M in Series A funding for its unique combination of security, engineering and cryptographic expertise.
The goal of the Zengo team is to make cryptocurrency easy and safe for everyday users by removing technical barriers to entry while maintaining the highest level of security. ZenGo strives to support all relevant native cryptographic protocols, financial services and digital assets.
- Zengo's friendly and intuitive interface makes this wallet a great choice for beginners. Unlike many other cryptocurrency wallets, ZenGo avoids many of the technicalities and hassles associated with cryptocurrency storage.
- ZenGo overcomes the private key discovery vulnerability. This makes it a fantastic option for investors who don't want the burden of keeping their private keys safe and secure.
- Fluid and simple user interface
- Strong Customer Support: ZenGo offers 24/7 live customer support via email, live chat or social media.
- Strong security: Three-factor authentication (3FA) protects Zengo users.
- No private key is required, eliminating the risk of a single point of failure, key hacking/phishing. At the same time, all actions are chained.
- Although ZenGo is available in 188 countries, some features are only available in certain locations.
- ZenGo's approach may not be ideal for users who want to take full responsibility for managing and storing their private keys.
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Collect cryptocurrency + earn rewards
Founded in 2015, Exodus is a multi-asset software wallet that eliminates geek requirements and prioritizes design to make cryptocurrency and digital assets easier for everyone . Available for desktop and mobile, Exodus allows users to secure, manage and trade over 10,000 industry-leading asset pairs such as Bitcoin (BTC), Ethereum (ETH) and more from one beautiful and seamless wallet . It's easy to use. Non-security features are encrypted locally on the user's device, providing complete privacy, security and control over your assets. Exodus' mission is to ensure that half of the world exits traditional financial systems by 2030.
- A newcomer to the world of cryptocurrencies
- It's easy to use
- Trezor integration
- for free
- Large currency selection
- Excellent 24/7 customer support
- No personal information is required
- The FTX app is not available on the mobile app
A high-profile crypto blunder
Below is a list of high profile cryptocurrency exchanges and platform failures costing investors.
exchange error
© Provided by Benzinga How to Survive a Crypto Bear Market When Crypto Exchanges FailThe collapse of a cryptocurrency lender
Unfortunately, investors who have lost cryptocurrency often recognize the importance of self-protection. Investors may take this risk because they are not educated about cryptocurrencies, or perhaps feel that this is not going to happen to them.
Personal liability is an important concept in the cryptocurrency space. Keeping your cryptocurrency safe is your decision and yours alone. The most important method of protecting your cryptocurrencies is self-monitoring. In other words, store your cryptocurrency in a secure wallet where you manage the private keys.
The first of the two main types of wallets is the software wallet, which is considered a hot storage wallet because it is almost always connected to the internet. The second type is a hardware bag known as a cooler bag. It is considered a cooler bag as it is often isolated from the internet. This barrier makes them more secure than hot wallets.
Removing cryptocurrencies from currencies and keeping them in a portfolio is a huge responsibility for investors. They need to learn how to properly transfer their cryptocurrencies. Errors can result in the loss of your cryptocurrency. Investors who take the time to learn will do better than investors who store their cryptocurrencies on a centralized exchange.
It is the sad reality of cryptocurrency that many investors lose most or all of their cryptocurrency. This could be due to an exchange error or incorrect verification of their hacking secrets.
When a stock market crashes, social media is flooded with posts from investors who have lost everything. The sad thing is that most of these losses are preventable.
Is there an easier way?
Yes indeed! Is there an easier way? Before risking your hard-earned money, take some time to educate yourself. Many investor horror stories can be avoided if properly studied.
This lesson teaches them the importance of keeping their cryptocurrencies safe and managing their private keys. Also, they learn to spot scammers and scammers. You can study cryptocurrency market cycles, which will give you an indication of the best time to enter the market.
The right education can teach them to create good strategies for creating space. For most investors, using a dollar cost average strategy is the safest way to build a position. Dollar price averaging is when you buy a specific cryptocurrency over a period of time.
For example, $100 bitcoin every month or every week can fit into your budget. If you keep a fixed dollar amount, you get a small amount when the price is high and a lot when the price is low. Over time, this activity will earn you a lower average price on the site.
Where can I get free crypto lessons?
There is a free cryptocurrency education online for anyone who will put in a little effort to find it. For example, Benzinga’s Learn About Cryptocurrency page offers tons of free educational content. Other websites and so-called cryptocurrencies charge you a tuition fee, but you only have to pay for the courses after using the free course.
YouTube is a great resource for cryptocurrency education and is full of cryptocurrency experts. But investors need to know which ones are valid and which ones are talking points to get likes and subscribers. It is better to get as broad a picture as possible. Over time you will learn who the real experts are.
A great resource for free cryptocurrency education
These free resources are just a small sample of what's available on the internet.
Another important resource investors should take advantage of is TradingView. Everyone should learn to read and analyze price charts properly. One of the best online charting sites, TradingView also offers a mobile app.
How to survive a cryptocurrency bear market
Crypto bear markets can be brutal times for many investors. But experienced investors and traders can make a lot of money. Often the difference lies in time, strategy, patience and education. If you get it right and with a bit of luck, you can thrive instead of trying to survive in a crypto bear market.
strategy
If you are trying to sell in the cryptocurrency market, you will probably find the right way. Investors need to develop a strategy to build their positions. How many areas does your portfolio cover? Do they only invest in bitcoin or altcoins?
What percentage do you invest in each position? How long do you hold your investments, years or even bull market periods? Are you using a dollar averaging strategy or are you trying to time the market and buy everything at once? These are some of the questions every investor should answer before investing.
moment
Timing is another important factor to consider. This can have a huge impact on your profitability when entering the market. The perfect time to start building a position is at the end of a bear market. The exception is if you plan to hold your investment for years. In this case, you can always start buying by using the dollar average price.
The worst thing an investor can do is give in to FOMO and buy near the top. This type of behavior occurs in all bull markets when prices are rising and inexperienced investors are drawn into the market by all the hype. Investors can avoid this by studying the cryptocurrency market cycle before entering the market.
patience
Most people heard the saying "patience is a virtue" hundreds of years ago. Whether that is still true today is debatable, but patience really pays off in the crypto market. But it's time for investors to take action too. What separates successful investors is knowing when to do nothing and when to act.
education
The importance of learning before entering the cryptocurrency market cannot be overstated. If you learn more, the "market price" you pay can be expensive. If you educate yourself beforehand, your overall experience in the crypto market will improve significantly.
Education will help you develop a good strategy and know when to enter the market and when to exit. Crypto bear markets can be very long and can even test cryptocurrency veterans. However, for educated investors, the cryptocurrency market is viewed as a huge opportunity.
Is it a good idea to trade cryptocurrencies during bear markets?
The answer is yes for traders with little experience. Trading isn't easy, but if you can learn to be a disciplined trader, bear markets can be just as good as bull markets for making money. Not only do you need to survive a cryptocurrency bear market, you can also prepare well for the next bull market. Good strategy, a sound business plan, patience, and emotional control are the hallmarks of a disciplined trader.
If you can learn to trade in a bear market, you'll become a more agile trader. Education is still very important. If you try to trade without first learning how to do it right, you could become a victim of another cryptocurrency bear market.
Donald Hancock's How to Survive a Crypto Bear Market post first appeared on Benzinga. Visit Benzinga for great content like this.