Cryptocurrencies Amid Chaos: Unearthing the Unseen Opportunities - Is Now the Perfect Time to Seize the Moment?"

When things are going well in the DeFi and cryptocurrency worlds, we frequently get carried away, forgetting that the pumps' margins may be repeated in the same magnitude when things go south.

This omission of factors like this can very much be attributed to bad strategy and entry points into the market.

Five resets have shaped cryptocurrency's history. The first occurred in 2014, when Mt. Gox, the world's sole bitcoin exchange, crumbled after a roughly $500 million breach. The DAO Hack, which occurred in 2016, involved an attacker tricking a smart contract into handing over $60 million in ethereum, which is now worth $8 billion.

The third, in January 2018, occurred when the ICO bubble popped, starting a year-long decline, wiping out 60% of the crypto market or more than $700 million mostly in the form of worthless junk tokens. 

The fourth took place in March 2020 when crypto lost 40% of its value along with most other global financial markets.

We can as well call this season the fifth.

I'd like to draw your attention to the fact that each reset not only increased price-market capitalization, but it also opened the path for quick innovation. Coinbase and Kraken, the two most popular exchanges in the United States, sprung from the ashes of Mt. Gox's demise because their founders saw the need for a safe location to acquire bitcoin.

The implosion of the DAO and the ICO crash laid the framework for the current expansion of DeFi and the popularity of DAOs, and it's difficult to envision Tesla buying bitcoin before Covid.

The pace and methods  by which these questions may be answered will depend on how the market responds to this sudden shock. Crypto has already lost more than $1 trillion in value over the past six months, which has seen bitcoin fall from highs near $70,000 to below $30,000. Adding further urgency is the fact that this could be the first macro crypto bear market where institutions such as Tesla have the asset on their balance sheets. In fact, MicroStrategy, the world’s largest corporate holder of bitcoin, with a stockpile of 129,000 tokens with an average purchase price of $30,700, is now at a loss for the first time ever.

Even before Terra's collapse, the sector experienced "some de-risking in the crypto realm." This basically indicates that bitcoin reversion began in October, implying that investors began to reduce their crypto investments in late 2021. Just to let you know that what is going on right now is completely normal.

Another piece of good news for the crypto market is popular opinion that the Luna/UST meltdown will not propagate throughout the crypto ecosystem or into regular finance. Indeed, the sector passed a major test last week when Tether temporarily lost its peg, tumbling below 95 cents before rapidly rebounding.

Now moving to a more recent context, Bitcoin, which has recently been trapped in a band around $30,000, has some market observers wondering if it is vulnerable to additional declines.

Although it has been stuck around $30,000 for several weeks, the most expensive cryptocurrency increased for a third day, gaining as much as 3.7 percent. Furthermore, while tech stocks have risen in the last week, their record-high correlation with the Nasdaq 100 has dropped, indicating that they are behaving like a risk asset.

I will shortlist several key points from the aforementioned above to help deal with the market during a dip

💡 Think Long Term

You are extremely very early. Most people still don’t know what cryptos are. Opportunities are still abound. Solid projects look good in long term. They are not “dead” just because the market dipped.

💡Learn From Experience.

If you have taken a loss during a dip, it would be wise to reassess your strategy.

BIf you have taken a loss during a dip, it would be wise to reassess your strategy.

• Did you ape into projects that you didn’t understand ?
• Did you follow a clear strategy to make profits ?
• Did you diversify your portfolio?
• Did you balance your portfolio according to your risk tolerance and time horizon?

💡Stay Level Headed.

No matter how bad your portfolio looks, you must cut out negativity and stay level-headed.This is equally as important when your portfolio is up a lot. You need to remove emotion and analyse your investments objectively.

💡Educate Yourself.

Moments when the market is down or flat are ideal to learn more about crypto. Learn crypto and investing basics, dive deeper into projects and protocols, become an expert in NFTs or try out some DeFi applications.

💡Allocate Funds Wisely.

Diversify your portfolio across different DeFi assets, including established cryptocurrencies and promising tokens. Consider factors such as liquidity, market capitalization, and project fundamentals when deciding how to allocate your funds.

My work at Algoo Strategies centers around personal finance. I currently have over 100 clients I'm working with, basically what we do is help you analyze your current financial portfolio or financial situations. and use the information we've gathered to create a detailed financial plan that allows you to diversify your portfolio across multiple DeFi protocols and improve your earning capacity.

To assist you in getting started My team has created a short survey to aid you in analyzing your risk tolerance and setting goals depending on your budget and time time frame, and then we will design a comprehensive portfolio plan for you that will guide you through applying these protocols profitably.

To complete this survey and receive a free portfolio schedule use this link to access the survey on Algoo strategies' platform and carefully fill it out.

And trust me when I tell you that the stream and flow of knowledge here is endless!