In 2017, cryptocurrencies saw a substantial growth across board, with bitcoin soaring 1,500%, while ripple rose by 35,000%. But on Tuesday, January 16, 2018, most of the crypto assets experienced a sharp decline or downturn, with bitcoin falling up to 25% within a few hours; Ethereum dropped 31%. Altcoins Cardano and Tron have both lost 13% and 17% respectively, over 24 hours.
However, there is no need to panic, and here are a few tips on how to mitigate risks or even earn while there is a downturn like this:
- Hold bitcoin or Ethereum
These two assets are considered to be stable because they have proven, real-use cases. Bitcoin has a form of store value, having been universally accepted as a kind of payment instrument. Ethereum, on the other hand, has been used to create smart contracts and decentralized applications. The two cryptocurrencies’ teams are proactively working on those platforms to improve their efficiencies. Bitcoin has been in the game since 2008, while Ethereum came on the scene in 2014. The two assets have a lot of plans for future expansions. Both bitcoin and Ethereum run on blockchain technologies that are transparent so that every miner/user on the blockchain can see the transactions going on within the system.
- Trade futures on the blockchain with satoshifutures.io:
Another approach for handling a sudden downturn in the crypto market is to buy short-term binary futures on a futures platform such as satoshifutures.io, which is a decentralized futures binary options platform that offers a 70% payout per trade when you correctly assert the market trend. The principle behind cryptocurrency binary futures is very simple: You predict the price movement of an asset, whether it will go up or down within a specified time-frame. If your guess is correct, you win and will receive a pre-determined payout of 70% of your investment. But if your price pick is not correct, you will still be paid a complementary payout of 1 wei. Binary options, like every other investment, are risky. So, make effort to plan your investment carefully.
- Buy more of the altcoins
Buying the altcoins you believe in is another way to mitigate a market downturn. You have to carefully do your homework by researching which altcoins have great teams and visions. Are they widely accepted? Will they enjoy future expansion? It is at this moment that the market is down that you should pile up more of those altcoins you believe in really. Those ones that will end up creating projects of value that you could provide you great returns long-term. For example: You can invest in cardano that is down 50% for one week. Generally, altcoins are other coins that are not bitcoin. Here is the list of top 10 altcoins, their symbols, market caps, and prices:
First 10 altcoins – Altcoins table obtained from Coinmarketcap https://coinmarketcap.com/all/views/all/
- Liquidate some of your portfolio
If you have already made some tangible amount of money from your investment, it is a good practice to liquidate some of your portfolios from time to time. Do not hold all your gains in crypto assets forever; this also applies to every other type of investment. You can never successfully predict what will happen in the market the next hours. This is why it is advisable to play safe and regularly liquidate some already profitable assets before they lose their values suddenly. You may choose to invest in other low-cost crypto assets, or hold your profits in cash. The choice is absolutely yours.
TLDR: Cryptocurrencies have experienced a sharp decline in the past week. There is no need to panic as there are multiple ways to mitigate losses and even benefit from market declines.