The fact that the Fed will raise interest rates has recently been the most essential financial information that all investors in the financial market, such as stocks, coins, and gold, are concerned about. This suggests that interest rates will rise, the time of low interest rates will end, and speculative assets will decline.
What will we have to do in order to avoid losing money or to generate a profit?
1. Make an investment in yourself.
Investing in oneself by learning something new is one of the most likely things an investor can do during a weak market.
This not only prevents investors from selling and missing out on future earnings, but it also prepares them to stay strong and lucrative in the market.
Despite the market slump, cryptocurrencies are moving closer to widespread acceptance, and the number of employment in the blockchain sector is expected to increase in the future.
Whether it’s studying Solidity programming, experimenting with digital and visual design to build new NFTs, or simply performing research to acquire insight into other aspects of the market, the key to surviving in a bear market is to be optimistic, be patient, and never stop learning new things.
Investing in yourself is always the most lucrative investment, regardless of the circumstances.
2. A mechanism for averaging prices
DCA is an investing technique in which an investor splits the total amount of transactions on a quarterly basis or at a certain price of an asset to reduce the risk of the entire amount of capital they participate in.
While the DCA technique is a fantastic approach to enhance exposure to long-term stable projects, traders should wait until the market has calmed down and the accumulation phase begins before using it.
Projects with ongoing development, an engaged community, and a clear plan outlining how the project will continue to expand and become profitable in the future should be the focus of the averaging approach.
How to maintain a bitcoin portfolio’s balance
The first step in surviving a bear market, according to most experts, is to select a well-balanced portfolio. Never put all your eggs in one basket, as the expression goes. This is where the importance of variety comes into play.
You can essentially assure that any negative volatility in a cryptocurrency will not significantly impact your return from the market by diversifying your assets.
The risk reduction method is more successful when portfolios are invested in several crypto asset types. Various cryptocurrencies are used to support various crypto initiatives. This implies you may diversify your cryptocurrency portfolio by investing in several crypto projects or currencies.
3. Competitive Blockchains and Projects
Setting up a competitive blockchain allows you to compare the feasibility of different cryptocurrencies. The purpose is to determine the value of a crypto project. Will it be able to gain market share? Is it possible for it to become the market leader?
Which blockchains are in direct rivalry with each other?
Is the infrastructure of rival blockchains better?
What have been the most recent advances in the project’s use? Is it addressing a specific cryptographic issue?
The Solana blockchain has been dubbed the “Ethereum killer” by several crypto enthusiasts. The Solana blockchain is a direct rival of Ethereum in this situation.
Although Ethereum has a first-mover advantage over Solana, when the two are compared side by side, Solana has a considerable fundamental edge. The most important conclusion is that, in comparison to Ethereum, the Solana network can process several transactions per second while keeping transaction costs low.
Solana is expected to handle over 60,000 transactions per second with an average cost of $0.0015 each transaction, whereas Ethereum barely processes 17,000 at a cost of $5.80 per transaction. Solana is one of the few public blockchains that can scale to millions of transactions per second as DeFi grows in popularity.
Solana, on the other hand, uses the Solana Foundation as a central body for node software development, while others provide Ethereum node software. The discrepancy here might indicate that the so-called “Ethereum killer” will have a higher level of centralization.
4. Communities and groups
The team behind a crypto project is equally as crucial as the product itself in terms of legitimacy. What are the names of the founders, as well as their educational and professional backgrounds?
What firms are involved in the project, and what are the ownership and governance structures?
What is the size of the team working on this project? In a garage with three people? Or a group of engineers from all around the world?
What is the size of their community? What is the total number of active blockchain addresses?
It should be highlighted that blockchain and dApp developers are in short supply in the crypto realm, and marketing/sales teams should not be disregarded. The aggressive trading technique aids in drawing attention to the cryptocurrency project, successfully growing the community, and attracting new developers to the development team.
Please make every effort to stay awake.
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