Crypto winter: Your opportunity to make 10x

6/30/2022, 12:05 PM
Crypto winter: Your opportunity to make 10x
The crypto market has been through a lot of ups and downs this year, leaving many investors feeling unsettled. Doug Milnes, a marketing executive from Summit, New Jersey, is one of those investors. He bought cryptocurrencies in January of this year with high hopes that it could become an entirely new asset class. However, his holdings are now down around 60 percent from where he bought them. This has made him question whether to hold on, head for the exits, or buy the dip.
Terra Luna crash: What are ‘stablecoins’ and how stable are they really?"Crypto has gone through a number of booms and busts over time, and it’s hard to know if this time is different," Milnes says. "I don’t know if my feelings are clouding my judgment. It’s hard to feel confident about what to do next".
It has certainly been a harrowing year for crypto, and Milnes is not alone in trying to make sense of the plummeting charts. Total market capitalization of crypto assets has gone from almost $3 trillion in November 2021 to roughly $900 billion as of June 29, according to the tracker CoinMarketCap. Meanwhile, Bitcoin - the dominant cryptocurrency - fell from a high of more than $67,000 to its current level just below $20,000. If you find yourself unduly rattled by these losses, maybe you’re not a good candidate for holding that asset class. There's no shame in that.
But if you sell your crypto now, you sealed your loss! The smart investor buys when the price is down. The crypto winter will end - and tomorrow's price may not increase tenfold. But even if it can only reach the old all-time high again, that would be a tripling of the current value. So not only do the losses since January balance each other out, but all the assets you have bought now bring you a fat profit. Anyone who sells assets now has not understood Cyrpto. The next bull run will come - and I hope you all will be on board.