How to build despite the “bear market” in cryptocurrency

During a bear market, it can be more difficult to strategize, as the value of investments can go down. However, there are still ways to create value in a bear market.

2022 has been an incredible year for the crypto space. We will remember all the global bankruptcies: Luna, Celsius Network, FTX, BlockFi and others that left investors with huge losses. The bear market has significantly affected the cryptocurrency economy and investor wallets, and it may not be over as Genesis files for bankruptcy owing major creditors $3.4 billion in total. FTX owes $3.1 billion to its 50 largest creditors. This is not the first very cold winter for cryptocurrencies, just like in 2013 and 2017, the market moves in cycles.

It is important to remember that bear markets are temporary and that markets have always rallied in the past. It’s good to have diversity and not make emotional decisions. Building wealth in the bear market of the cryptocurrency market can be difficult, as the value of many cryptocurrencies may decline. However, there are still ways to potentially create value in this market. In any case, it should be remembered that the cryptocurrency market is very volatile and investments in this market can be risky, and very often the nuggets are not newsworthy, but are rather discreet with strong teams… It will be interesting to observe the projects made by blockchains.

Here are 3 simple axes not to be overlooked in the crypto ecosystem:

Invest

Invest in undervalued cryptocurrencies with solid fundamentals and a strong team. Consider investing in cryptocurrency mining or staking, as they can provide a steady stream of income. Limiting climate impact has led emerging blockchains to come up with ways to make the mining of new coins and tokens more environmentally friendly. For example, Sazmining, a Bitcoin mining hosting solutions provider, launched its first hydroelectric-powered mining facility in Wisconsin, providing the company with a carbon-neutral source of electricity.

Opportunity

Look for opportunities to invest in new projects or startups in the cryptocurrency space, as they may have growth potential. Diversify your portfolio by investing in a combination of different cryptocurrencies and blockchain projects. DeFi grew by +76%, in line with the overall growth of Web3. More than 500 new developers committed code to a DeFi project every month in 2021. In any case, community engagement signals are an important and complementary indicator for the NFT, Gaming and DAO markets.

The day before

Learn about technology and cryptocurrency market trends to stay informed about potential opportunities. For info The largest ecosystems are Ethereum, Bitcoin, Polkadot, Cosmos, Solana, BSC, NEAR, Avalanche, Tezos, Polygon and Cardano, each with more than 250 active developers per month. Ethereum, Polkadot, Cosmos, Solana, and Bitcoin are the top 5 developer ecosystems.

It’s also important to do your own research and not make decisions based on hype or speculation. Every week we publish a Web3 newsletter that incorporates concepts such as decentralization, blockchain technologies and the token-based economy.

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