Is this utility artificial, or does it correspond to a real need?

  • Is there a max supply of tokens (maximum number)? Is the token deflationary?
  • If not, how quickly will the new tokens be created? To whom will they be distributed? Estimate current inflation: Will demand for the token rise faster than inflation? How will token creation be handled in the future? Who will govern these decisions?
  • Can you use your tokens to grow your stack (staking, yield farming, etc.)?
  • How many tokens are currently in circulation compared to the max cap (if there is one)?
  • What ratio do the team and early investors have? How are tokens distributed?
  • The Bottom Line

    When choosing cryptos that will survive the bear market, the key is to invest in cryptocurrencies with real projects and communities behind them.

    Is crypto in a bear market

    Like any bear market, even in the crypto ecosystem, we see various trends that cycle over the course of years. Early 2018 was the year ICO (initial coin offerings) led to hundreds of thousands of tokens being generated backed by startup companies attempting to fundraise. In 2020 we witnessed the rise of Defi (decentralized finance) also known as Defi summer, which various organizations adopted to produce Defi solutions.

    Within the last year, NFTs stole the show and have become at the forefront of mainstream mass adoption.
    As these trends come and go, it creates a new subdivision of the blockchain ecosystem. It provides opportunities for emerging projects and a wider platform for major players in the space to continue producing new products.

    Is crypto in a bear market reddit

    While BTC and ETH managed to “only” lose around 60% of their value since their highs, numerous leading altcoins have lost more than 90%.

    The recent collapse of UST and LUNA has sent prices crashing, as investors received a stern reminder of how risky cryptoassets can be.

    Needless to say, crypto investors are feeling uneasy. According to the Crypto Fear & Greed Index, they are actually “extremely fearful.”

    But that doesn’t mean investors have to leave crypto and wait for the next bull market to jump back in.

    What can crypto investors do now?

    It has been a difficult year for crypto investors (well, stock investors too), especially those who have only entered the market recently and are experiencing their first market downturn.

    Let’s take a look at what investors can do during this crypto bear market.

    Is crypto in a bear market right now

    Nor do they generate a stream of steady income like bonds—which also can be easily valued by investors.

    As a result, crypto investors are primarily driven by market psychology. That’s why digital assets are a much more speculative asset class than traditional securities. It’s also why crypto bear markets in the past have been lengthy and punishing—it took Bitcoin almost three years to break free of what enthusiasts called “crypto winter,” the downturn that commenced with a crash in November 2017 and erased 81% of the token’s value at the bottom.

    Still, when it comes to bear markets, cryptocurrencies behave much like other investments: they lose value for an extended period of time until something happens to reinstill confidence.

    Is bitcoin in a bear market

    Crypto White Paper Analysis

    For any crypto investor, the white paper provides a treasure trove of technical information outlining the details of the project.

    When conducting fundamental analysis, it’s important to consider the crypto whitepaper as your gateway into the details of the project. The whitepaper also details the project’s roadmap, outlining the planned rollout of new features to the blockchain. Here are the critical questions that the white paper addresses:

    • What does the project do?
    • What problem does it aim to solve?
    • How does this project solve the problem?
    • Token economics

    As we mentioned earlier, the crypto community continually addresses scalability, absolute privacy, and interoperability problems.

    Is cryptocurrency in a bear market

    Yes, blockchain or decentralized applications (dApp) projects are very similar to start-ups – they seek to create value by innovating.

    Once we have evaluated all fundamental aspects of any crypto, we will be in a much better position to evaluate whether or not it can survive a bear market. Note that the blockchain metrics of any crypto, such as the hash rate, the number of active addresses, and the transaction values and fees, can be accessed from various websites while also being available on CryptoCompare’s advanced charts.

    Below are some of the steps investors should consider when conducting due diligence on the cryptoassets that they are considering investing in.

    Is bitcoin in a bear market now

    Let’s see how you can accomplish this.

    Cryptoasset returns have, over the last decade, been well above those of equities markets, with Bitcoin greatly outperforming both gold and the S&P 500 over the past 10 years. Risk can be reduced with a balanced portfolio, but resilience is crucial in the cryptocurrency space as every market downturn takes its toll.

    Nearly 1,700 cryptocurrencies have completely lost their value over the last decade, while some have simply lost most of theirs over time. Looking at the top cryptocurrencies and their price performance may make it look like investing in cryptoassets is easy, but in reality a lot of research is required.

    How to Pick a Balanced Crypto Portfolio

    The first step to surviving a bear market is, according to most experts, choosing a balanced portfolio.

    Is ethereum in a bear market

    In the crypto market, bitcoin is king, and, in most cases, its fluctuation drags the entire market down. This correlation isn’t of 100%.

    At some point, some cryptos will recover quicker than others and go on to newer highs, while some may crash and never recover. How hard a cryptoasset crashes often comes down to its fundamentals.

    Why Choose Cryptos That Will Survive the Bear Market?

    Well, the answer here is pretty straightforward – capital preservation.
    The primary goal of any investment is to make profits. This makes selecting most resilient cryptos extremely important. It’s even more crucial to select cryptocurrencies that can survive bear market conditions and preserve their value.

    Is bitcoin in a bear market reddit

    During the previous cycle, Bitcoin plunged 85%.

    Heart, a Bitcoin mining investor, projects that the crypto can attain the $50,000 mark. He notes that based on the asset’s historical price movements if a drop of 85% is recorded, it can also hit a low of $10,000.

    The 2021 Bitcoin volatility saw the number one-ranked cryptocurrency surge to an all-time high of $64,800 in mid-April to plunging by almost 50% in recent weeks. The drop was mainly due to an increased regulatory crackdown in China.
    However, Bitcoin is now on a resurgence, trading at $39,300.

    Dogecoin to plunge further

    Furthermore, Heart also commented on investing in altcoins like Dogecoin. He states that investors can only make money from such coins if they bought them before going viral.

    “If someone bought DOGE when Musk was shilling it on Saturday Night Live, they were clearly buying the top.

    Is crypto in a bull market

    The bearish sentiment from mid-May 2021 is prevalent in 2022 as capitulation by new investors and traders continues.

    @BitBitCrypto, a crypto analyst and trader, is of the opinion that the bear market is here to stay. The launch of a custody Exchange Traded Fund (ETF) in 2022 could fuel a bull run and a massive rally in Bitcoin price.

    $BTC

    You need to know why we’re here to understand what’s coming up.

    IMO the bear market is here; it’s here to stay, but… not for a long time. I expect a real custody ETF to launch this year or the beginning of next year, creating another massive rally beforehand.

    pic.twitter.com/a3JRbSJubu

    — Bitbit (@BitBitCrypto) January 9, 2022

    @TraderMayne, analyst and crypto trader, believes that some price rallies occur in a bear market.

    Is bitcoin in a bull market

    The difference here may mean a higher degree of centralization for the so-called “Ethereum killer.”

    The Team and the Community

    The team’s credibility behind a crypto project is as important as the project itself.

    Questions:

    • Who are the founders and what are their academic and professional backgrounds?
    • Which companies back the project and what’s the ownership and governance structure?
    • How many people are working on this project? Three people in a garage? Or a diverse team of engineers across the globe?
    • How big is their community? How many active blockchain addresses are there?

    It’s worth noting that developers specializing in blockchains and dApps are scarce in the crypto world, and the marketing/sales team is not to be neglected either.

    Yet other than the introduction of non-fungible tokens (NFTs), widespread adoption of crypto didn’t materialize and a selloff across the sector began in December 2021.

    Another sign of a bear market in crypto is correlation. That’s when one asset class tracks the performance of another. Beginning in 2021, Bitcoin, Ethereum, and other leading cryptocurrencies started matching the ups and downs of stocks, especially the shares of high-flying technology companies.

    Cryptocurrencies were designed to do the opposite.
    As blockchain-based, decentralized assets, they are not supposed to be affected by the behavior of traditional securities.

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