The Perfect Crypto Winter Strategy: How to Find Alpha During Panic Selling

Panic in the cryptocurrency market has wiped out $1 trillion of market capitalisation. Many analysts are predicting a further decline and talking about a crypto winter. This cyclical phenomenon has occurred several times before, destroying 80% of the market's capitalisation when a bubble inflates in digital assets, approximately a year and a half after the bullish growth following each halving.

However, even during these periods, there are coins that can make users thousands of percent, such as ZCash. Social networks are flooded with advice on how to identify such 'alpha' tokens, as well as secret signals and complex strategies.

But, in reality, there is nothing complicated about identifying them. My strategy is simple. I track daily changes in the top 50, top 30 and top 10 lists.

As soon as a new token appears in one of these lists, I buy it immediately and double or triple my investment as it moves up from 50th place to 30th place and then to 10th place. If a digital currency falls below 50th place, I sell it.

However, market changes can happen too abruptly, as is happening now. Then, yesterday's alpha can result in significant losses, as can the entire portfolio. Therefore, I hedge every trade by selling futures on ByBit. I buy spot assets on Cryptomus.

It is important to separate exchanges for risk diversification. I store assets that have reached a top 10 rating in non-custodial wallets such as MetaMask, Electrum and Phantom.