Crypto Winter: How to survive (from the perspective of blockchain developer-cum-trader)
Crypto Winter: How to survive (from the perspective of blockchain developer-cum-trader)
The crypto market is now in a bleak period. A series of negative news continuously appears to confuse many people, the phrases “downtrend”, “crypto winter” also appear more. Will the crypto market have another “freezing” cycle like 2017? Time will answer. But if there really is a next crypto winter, we also need to prepare our minds and plans to survive!
1. For Developer
Crypto winter, as the name implies, is a time when the growth of projects and tokens comes to a halt. This is not the right time for new projects or ideas to launch when the FOMO, the response of the community has decreased a lot compared to the uptrend season.
“Bear season is the season to Build”, this can be said to be the motto for developers in this gloomy time of the market. In the downtrend cycle of the market, it is the time when new projects and ideas are incubated waiting to explode in the future.
Blockchain is still in its infancy in the development stage. There are a lot of problems, technologies as well as solutions that need to be studied so as to enhance the practicality and application of blockchain. Problems about security, speed, transactions of blockchain platforms or the development of new applications and concepts will be incubated from here.
2. For Traders
At the time of downtrend, the price of the tokens fell deeply from the peak. The accounts of many traders must inevitably suffer a little loss. Every time the market plummets, hundreds of millions to billions of dollars are liquidated by traders’ orders. So for traders to live well through the bear season, what do we need to do?
Capital management, risk management will be the existential philosophy of traders. In the downtrend, we don’t know when the bottom is. If you are a true hodler, you can buy a coin at a certain price and temporarily forget it, but for traders it is a very risky thing.
I don’t know if you have read the book “How I Made $2000000 in the Stock Market” by Nicolas Darvas or not. The main character in the book can be considered a typical trader, he will sell and put a stop-loss just below the support level a little bit, applying this way will reduce a lot of risk in the market sell-off. If you don’t choose a stop-loss point but try hard, maybe traders will have to sadly watch their accounts decrease day by day when the market is downtrend, and then sell off at a cheap price.
3. Summary
The crypto winter is an uncomfortable time for us, but from a positive perspective, this will be the time when the market purges scams with poor quality or weak hands and also an opportunity to develop new ideas and products.
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