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3 Tips That Will Make You Money During Any Crypto Crash

Updated: Feb 25

Do you have the crypto crash blues? Don’t sweat it. The vast majority of people are probably in the same boat, having seen their crypto portfolios decimated during the last few days of the crypto flash crash.

I mean, we watched Bitcoin drop from a high of over 45k to a low of 31k in the span of a week. Ethereum was also dropping, going from 3.5k all the way down to 1.9k in the same week.


So, how did I come out on top of all the uncertainty going around? I followed some key principles that you’d do well to follow as well.


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Invest Wisely

First, I invested wisely. Yes, this is kinda a “duh” statement. But, you’d be surprised at how many people are throwing their hard-earned money at Deez Nuts tokens because they heard about it on Twitter (no disrespect to the honorable Deez Nutz).

By investing wisely, I mean I understand the token or business that I’m investing in. I’ve been to their website, I know the Founders (not personally, but you know through online sleuthing), I’ve even read their white papers. HERESY I KNOW! I understand their use case, their competitive differentiation, as well as their main competitors. All of this puts me in a position of confidence in investing in their token.


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Stop watching the news!

Once I have a firm understanding of the organization, it allows me to accomplish step two. Which is to STOP READING THE NEWS! I know I’m going to sound like an old-head here, but the 24-hour news cycle makes it too easy to overreact, especially since selling your tokens is literally just a click or two on your phone.

Did you know that in 2016, Bitcoin went from $1,163 to $152! At that moment, I imagine any of us would be pulling out our hair and trying to panic sell as soon as possible. I’m not sure about you, but I’d love the opportunity to buy Bitcoin at either $1,163 or $152 as it’s currently trading for $38,000! And this my friends, is the perspective that we need to take with these investments. Yes, we will have days where we lose 50% of our portfolio’s value. But, we’ll also be in a position to have our portfolio multiply in worth over and over as long as we look at things with a long-term horizon.

Ok, so we’ve researched tokens that we feel good about, and we’ve tuned out the news. Now what?


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Have cash ready!

You have cash on standby to buy the dip!

Look, you know about the company, you feel good about it. But, your token is being dragged down by all the FUD (Fear, Uncertainty, and Doubt) in the marketplace and is now priced unfairly low. That’s when you take your capital that you have on standby and buy the dip. As Warren Buffet himself says, “Be fearful when others are greedy, and greedy when others are fearful”. And this ladies and gentlemen is how to tackle a dip or bear market like a pro and come out on top.

I personally used this strategy, in my investment in MATIC (Shoutout to the MATIC team!). It’s a great group of minds, working on a solid project with a great use case. Their token was soaring right before the overall Crypto market crashed this week, and the value of their token fell roughly 50%. I seized on the opportunity to buy the token at a value and as the crypto markets are slowly returning to normal I have been rewarded with a one-day price increase of 58%!

Certainly, these results can’t always be expected. But, it’s the framework and mindset that matters.

If you’d like to learn more about this subject, check out my Youtube Channel NoAutoPilot.


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Peace!

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