[BlockTwits Live] Crypto Expo Asia 2022 - Investing During Bear Markets - How To Not Lose Your Money In Crypto

BlockTwits reporting live at Crypto Expo Asia 2022 in Singapore. Founder and CEO of One Button Capital, Max Yampolsky, provides his thoughts on investing during bear markets so as not to lose your money in crypto.

Based on Max’s experience, there are a few things that don’t work in a bear market. First of all, crypto holders might consider converting all their cryptocurrencies to stablecoins and stakes to earn yield. He thinks this is not a good idea given that stablecoins aren’t really stable at this point in time.  UST (Terra) is used as an example; holders lost 99.99% by holding this so-called stablecoin. And for stock and bonds, the stock markets are having the worst of their time currently, especially growth stocks like Netflix and Facebook (now Meta), while U.S. bonds are at a historical all-time low as well. Crypto hedge funds are not performing well too. According to a report published by PWC, quote, “while different strategies have yielded different levels of performance, neither was able to outperform Bitcoin itself”.

Therefore, Max suggests those things might work in the current bear market. DCA (Dollar Cost Averaging) being the first solution. Since we do not know what’s the lowest possible price of Bitcoin, instead of timing the market, it’s best to invest throughout a span of 12 to 18 months on average. Other than that, stop-loss is an effective but underused tool by crypto investors. If one managed to set a stop-loss of 10%, he or she would have funds to DCA when the crypto price continues to fall. Last but not least, Max also suggests using a trading automation tool, aka trading bots, since the automated trade is based on MA crossover, one of the technical indicators, the loss would be minimised significantly during bear markets.

Reported by: [BlockTwits] Nell