This educational guide exploring How To Protect Crypto Assets in a Bear Market was created in conjunction with Caleb & Brown. Caleb & Brown is the world’s leading cryptocurrency brokerage. Learn more here.
2022 has proven a challenging year for cryptocurrencies and equities so far.
At the time of writing, the SPDR S&P 500 ETF SPY, Nasdaq Composite (INDEXNASDAQ: .IXIC) and SPDR Dow Jones Industrial Average ETF DIA have declined by 25%, 35% and 20%, respectively, from their 2021 highs.
Cryptocurrency has mirrored these declines, albeit with greater intensity. The Bitcoin (BTC) price has come down to a low roughly 75% off its all-time-high, and Ethereum’s (ETH) price has declined to a low ~82% off its all-time-high. Altcoins like Solana (SOL), Polygon (MATIC) and Dogecoin (DOGE), all of which were stellar 2021 performers, have been dragged in the tracks left by their larger market cap counterparts, seeing their prices decline approximately 87%, 72% and 90% since their 2021 highs.
A report by IMFBlog, a blog on economic and financial insights run by the government-backed International Monetary Fund (IMF), concludes, “There’s growing interconnectedness between virtual assets and financial markets,” leading many to believe that while poor macroeconomic conditions persist, cryptocurrencies will likely remain in their dire state.
Despite what the headlines may suggest, there’s no need to panic. Volatile periods are typical in the crypto market. What’s important in these periods is to protect mental and financial capital and avoid catastrophic behaviors.
For Caleb & Brown, the world’s leading cryptocurrency brokerage, helping investors navigate the complexities of buying, selling and swapping cryptocurrency is a core function of their business. Through their personalized broker service, investors gain access to experts with a wealth of experience in navigating crypto markets.
What’s more: Caleb & Brown’s brokers are available 24/7, ready to discuss every concern, idea or speculation. Whether you’re mapping out a hedging strategy, considering dollar-cost averaging (DCA) or aiming to learn more about cryptocurrency in general, C&B’s brokers can guide you through it all.
Using Key Indicators And Performance Road Maps As Guides
Like Coinbase Global Inc. COIN and Interactive Brokers Group Inc. IBKR, Caleb & Brown provides top-of-the-line brokerage services at affordable rates and exceptional speed.
Unlike its two counterparts, however, Caleb & Brown prides itself on providing a personal touch to its brokerage services for crypto beginners and sophisticated investors alike. This allows the company to help investors understand the market and their own goals so they can determine an investment strategy.
For example, through consultations with brokers, Caleb & Brown will allow investors to:
- Appropriately diversify their crypto portfolios based on their risk tolerance
- Seek education about altcoins and learn about their risk and reward potentials
- Use key indicators, like all-time highs and market dominance, to tailor a strategy and time horizon for future returns
- Protect their gains by making sure risk is well-managed and hasty decisions are avoided
As opposed to being a platform where one simply executes trades, Caleb & Brown’s personalized experience creates an environment for investors to upskill, learning about key investing concepts, such as risk management, and wealth-building concepts with a broker by their side.
Speaking on this topic, the company says on its website, “We say it as it is, investing in crypto is not always smooth sailing. That’s why we exist, to help you navigate the complexity and reduce the risk, so that you can capitalize on this transformative asset class and build a better future.”
The End Of The World?
Contrary to prominent news headlines, all is not lost.
Bear markets and crypto winters are cyclical occurrences that provide a necessary cool-off period for the economy before the next bull run. Every bear market in history has replicated this cyclical process. Even Bitcoin’s recent 70%+ declines have been seen at least three times before, as discussed in a previous article.
The market can be a noisy and confusing place, but it doesn’t have to be. Enjoy peace of mind thanks to the education and personalised service of Caleb & Brown’s crypto brokers here.
Are you interested in gauging if now could be the right time to invest in crypto? If so, read this previous article in this series here, to learn about the tried-and-test dollar-cost averaging investment technique to get started.
Featured photo by Pierre Borthiry – Peiobty on Unsplash
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.