#MarketDownturn
• Deep research and focus on fundamentals:
Exploiting the quiet period to study new and emerging projects that offer real technological solutions in areas such as decentralized finance (DeFi) or Layer 2 solutions, discovering "gems" in a bear market is what distinguishes a successful investor.
2. Short-term risk management strategies to preserve capital and prepare for any additional pullbacks, strict risk management principles must be applied:
• Portfolio diversification:
Investments should be thoughtfully distributed among large-cap assets, mid-cap altcoins, and stablecoins, this diversification reduces losses in the event of a specific asset collapse and allows for taking advantage of opportunities in different sectors.
• Switching to stablecoins:
Holding a portion of capital in stablecoins provides instant liquidity to buy when sudden downturn opportunities arise, stablecoins act as a "safe haven" within the cryptocurrency system, protecting the purchasing power of the investor.
• Avoid excessive leverage:
In bear markets, excessive leverage can lead to rapid liquidation of positions. Investors should reduce their use of leverage or avoid it altogether to protect their capital from violent fluctuations.
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