Forbes Announced: These Altcoins Will Win In The Bear Market!

Nearly every asset class has collapsed in 2022 so far. Stocks and bonds fell sharply, and gold fell nearly 10 percent. Only assets such as cash yielded positive returns. None of these have seen more pain than the crypto space. In November 2021, Bitcoin (BTC) was close to $69,000. Today, it’s around $20,700, down about 70 percent. Ethereum (ETH) is down 58 percent. Cardano (ADA) and Solana (SOL) have lost more than 70 percent and 55 percent of their value, respectively, to date. In other words, altcoin projects are not in a better state. Forbes analyst Dan Ashmore explained his investment strategies and preferred assets in the bear market.

Factors to be considered in the Bitcoin and altcoin market

This year’s drop is the latest in a long series of bear cycles in this highly cyclical industry. So why does it sound so harsh for the cryptocurrency this time around? It is worth remembering that crypto money was not on the market during the great calm or the 2008 financial crisis. In fact, both events inspired Satoshi Nakomoto to launch Bitcoin in 2009. From then until the end of 2021, the US stock market experienced one of the longest bull runs in history, according to the analyst. The cryptocurrency has grown tremendously from its previous days. It is therefore a difficult task to claim historical price data so far.

According to Anshmore, what we do know from previous crypto winters is that some cryptocurrencies have ceased to exist. Also, the crypto is unlikely to rise in value until the stock market recovers. Therefore, the coins to invest in are those with the strongest fundamentals, mainly real use cases. According to Ashton, these cryptos are likely to survive a long sell cycle. Cryptocurrencies that rely on marketing and community, such as chest coins, are finitely surviving during downturns. It just continues to take advantage of the bull market hysteria. Even in less daunting crypto winters, many cryptocurrencies failed to recover from all-time highs.

The biggest cryptocurrencies are reliable

With a precedent for “blue chip” stocks, the biggest cryptocurrencies will likely weather the storm best. Ashton cites the following list as an example:

  • Bitcoin: It’s no surprise to say that Bitcoin, the world’s largest cryptocurrency, is the safest bet in the current bear market. It still has a market capitalization of $396 billion and is held on the balance sheets of publicly traded companies. Institutional adoption is growing and carving a role in mainstream financial markets.
  • Ethereum: ETH has established itself as the leading smart contract network, the core layer of decentralized economics. Altcoins Ethereum and Bitcoin represent about 60 percent of the market.
  • USD Coin (USDC): With the markets plunging all over the place, this stablecoin has been one of the main cryptocurrencies this year as it is based on the US dollar, the last safe haven. “We’ve seen a tremendous increase in the dollar,” Matt Forester, chief investment officer of Lockwood Advisors at BNY Mellon Pershing, told Forbes Advisor.

“Remember that having fiat currency stablecoins is a way for crypto investors to secure their wealth in dollars without leaving the crypto market,” Ashton says. It may also allow investors to take advantage of the returns within decentralized finance protocols (DeFi). These DeFi protocols supplement financial artifacts and services built on Blockchain technology.

How should cryptocurrency investment be in the long run?

According to the analyst, crypto investment should be viewed with a long-term lens. In the short term, crypto is prone to large fluctuations in value. Without a long-term time horizon, speculators are taking huge risks from the increasing volatility of the crypto markets. If an investor can hold his crypto for the long haul, he can weather the storm of short-term price drops as long as the support asset is expensive.

In short-term trading, profits (and losses) are much greater. For some observers, the difference is gambling versus investment. First, it offers greater profit potential in the short term, but far beyond the risk spectrum. With a bigger rise comes, of course, the biggest risk.

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