Exposure to Crypto, or any form of equity investment during this downturn, will most likely keep many awake at night. Knowing that the market could collapse at any moment doesn’t do much for investor confidence. We are living in an extremely harsh economic climate, which is affecting pretty much every investment vehicle on the planet. Investors are looking for ways to hedge and protect their investments.
Even gold is proving to be a “lost cause”, as it recently plummeted to the low $1600 level. The dollar, on the other hand, has been enjoying a good run, but even that is losing value in “real terms”. So, how can Investors hedge their portfolios? The obvious strategy would be to open some short positions. However, many may feel uncomfortable with such an approach. So, where does that leave the average Crypto Investor?
An Offensive Idea To Some
Apart from going “short”, there is only one other way to protect your portfolio in this current market and that is the allocation of “effort”. It’s funny how motivation and effort generally wane during bearish phases. However, it’s probably the best and most important time to be active. I have seen this occur time and time again, and though it doesn’t surprise me, it does disappoint me. In my own mind, it’s a wasted opportunity and an amazing one at that!
Unlike other asset classes, Crypto offers a plethora of earning opportunities. There are just so many ways that the average person can begin accumulating Crypto with a little extra effort and no additional expense. To be honest, this is how many of us actually entered the Crypto space. The only way that you can genuinely compensate for the loss in your portfolio is to add value without “purchasing” it. This is a dynamic of Hive that has been hammered home by many of us. It’s a no-brainer, simply keep building and accumulating by utilizing opportunities such as Hive and others, and eventually your portfolio explodes, regardless of the market.
Time In The Market
Fund managers often encourage the idea of spending time in the market. However, it’s not always effective. Crypto, on the other hand, has proven to be an asset class that rewards consistently over time, provided the time frame is four years or more. Look at gold, for instance, it’s down over a 10-year period. Now that’s a lot to stomach! If you simply keep accumulating by utilizing the plethora of opportunities available in the Crypto space, you will eventually experience growth, regardless of bear markets.
It may require some extra time and effort, but it’s definitely worth it in the long run. Cut back on a little TV screen time, get up earlier, or simply incorporate some “Crypto activities” into your day. In time to come, it will be a rewarding decision. Simply be relentless in your ambition to see your portfolio grow, even while prices are compressed, and you will be a lot better off than those who choose to simply “wait it out”.