It’s No Secret
I had actually wanted to write about exchanges surviving a bear market some time ago but never got around to it. The funny thing is that oftentimes exchanges and similar-styled Crypto businesses often manage to survive the majority of a bear market. What you often find is that exchanges begin shutting down just as the Crypto winter begins to thaw out. This is sad but simultaneously also an indicator that the end is in sight. In the last bear market, we saw smaller exchanges like TradeSatoshi and others shutting down during the final stage of the bear market. These were great little exchanges that offered some great trading opportunities due to a number of factors. However, these were small exchanges and it makes sense how eventually they would have to capitulate.
Companies like Coinbase and Celsius are on another level entirely. Rumors of insolvency are most likely over-exaggerated and even if there is an element of truth to them there are ways they can avoid destruction. You also have to consider that as the industry matures traditional traders and investors begin looking for weaknesses they can exploit. It is public knowledge that Coinbase and Celsius in particular were targeted by short sellers for obvious reasons. Trading activity declines significantly in a bear market and in Celsius’ case, hodlers require capital. Many also choose to sell their holdings with the intention of repurchasing them at a later stage. These factors all contribute to a general decline in productivity and volume. No matter the sector, all companies suffer in a bear market.
More Than A Token
A company like Celsius is not just a Crypto project. Celsius is a registered entity with staff and mining operations. The company recently invested $100 million into Crypto mining and is continuously looking for attractive growth opportunities. A company requires a certain level of productivity to remain relevant. It is important to note that there is a lot at stake and extreme measures will be taken, if necessary. The FUD together with the short-selling has created an opportunity of great proportion in my view.
A Risk Worth Taking?
So, the question one needs to ask is, how do I take advantage of this opportunity? You can always simply pick up the Celsius token or choose to earn CEL on some of your existing assets. Holding stablecoins or altcoins with Celsius enables community members to earn rewards in CEL. With the price of CEL being down so heavily users can receive up to ten times the amount of CEL tokens as they would have received at ATH levels. In this way, investors are able to utilize existing assets in order to earn an altcoin that will most likely rebound very strongly once the bear market subsides. It is also important to note that CEL was one of the best altcoin performers in 2020 and 2021! Obviously, there is always risk involved but the risk/reward ratio appears relatively favorable in my opinion.
Coinbase is a listed company and therefore implies the purchasing of shares. I am not too keen on traditional stocks at the moment but it is also an option. Remember, FTX offer tokenized shares that can be traded 24/7 for those not actually wanting to open a traditional account with a platform like Robinhood. These industry leaders have an extremely strong chance of bouncing back. I executed a similar strategy in the crash of 2008 when stocks got pummeled. Old Mutual got absolutely decimated and I immediately saw an opportunity. I knew that as an industry leader, Old Mutual would somehow survive or be bailed out if necessary.
A Level Of Safety
Investing in an industry leader has the greatest chance of recovery and ultimately securing gains. Sure, a smaller project will likely offer a better yield, provided it recovers. The “99% of altcoins will die” narrative is nonsense in my opinion but there will be a lot of projects that simply don’t make it! Consider your investment decisions and do your own research. This is by no means investment advice. Celsius has an ongoing promotion, simply deposit $400 or more and receive $50 in free BTC. Deposits need to be held with Celsius for a minimum of 30 days to qualify for the $50 bonus. Use the code: 188954e8a2 to qualify for $50 in Free Bitcoin!
One needs to have different levels of investment exposure in terms of risk. The majority should be in the safest possible allocation with diminishing amounts as risk increases. Please seek the assistance of a financial advisor in regards to your Crypto investments if needed. This is not financial advice.