Here Be Dragons: Dealing with Crypto Collapse

In The Expanse episode by the same name, Alex tells Holden the story of explorers who sailed to the edges of the world to map out new territories. When the map ended and they were afraid to venture into the realm of monsters, they simply turned around and added the label "Here be dragons" to the map.

For many investors and traders of crypto assets, we are now in strange waters after a nonstop 3 month bull run. Those that are new to the market will not remember the lean days of $6 Eth or when Bitcoin crashed from $1000 to $200. A large portion of the new money probably haven't even traded more "stable" assets like stocks, commodities or currencies.

So here we are, in the land of dragons without much to rely on. What do we do?

Look to the stars

Just because we're in a bear market doesn't mean we haven't been in this territory before. It was just a few weeks ago when Ethereum was breaking $200 and quickly marching onto $300. When all else fails, remember that we've been here before. None of your prior entry or exit points matter again. Make trades guided by the reality of $200 Eth, not $400 Eth.

Feel the waves

Just because you are lost and adrift doesn't mean other people aren't. Volatility is simply a period of turbulent price discovery. For many traders, this is is the period of greatest profit and gain. A keen eye will observe that as one equity moves up, other equities tend to follow with a few minutes of lag. Being smart about setting limit orders and going with the flow may open many profitable opportunities.

Ration the supplies

Uncertain waters also carry many risks. Now is not the time to put all your eggs in one basket and shoot for the moon. Now is the time to have a balanced portfolio, capable of taking advantage of any opportunity. This means having a balanced holding of BTC, ETH and fiat while diversifying lightly into a wide array of alts. As ratios change, taking the opportunity to rebalance and snag assets on the cheap.

These last few days have been tough. I get it. But I hope this post gives you some comfort and guidance on how to navigate these treacherous waters. As the old saying on Wall Street goes, "Bulls make money, bears make money, pigs get slaughtered!" We've had the bull run and now it's time to make money as a bear. Don't get slaughtered.

Good luck!

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