Top Tips For Investors Looking To Navigate The Current Crypto Winter

Jesse Brown, CEO at Himalaya explores…

The crypto market has experienced a lot of turbulence in 2022 – and we’re barely over the halfway mark. From Luna’s extraordinary fall from grace to Bitcoin dipping below the $20,000 mark for the first time since late 2020 – investors have been riding a financial rollercoaster in the past few months.

Despite the doom and gloom outlook of many, confidence remains amongst investors as we head into a ‘crypto winter’. Latest research from Bank of America, which included findings from 160 of its clients – indicates that blockchain technology and the digital asset ecosystem are here to stay, and investors aren’t deterred by the state of the market.

While interest in crypto is steady, and investors are still keen to buy in, it’s crucial that anyone looking to invest their hard-earned capital into crypto – particularly retail and first timers – exercise caution.

Here are some practical tips for those looking to enter the current crypto market.

Don’t throw money at a tweet or post

Social media is a melting pot of crypto chatter, groups and influencers. While there are plenty of informed and authoritative figures on social media, like in any industry, there are also ‘experts’ who may be ill-informed and untrustworthy.

Social media also moves at a million miles a minute, which can create a sense of urgency around buying into something – and this isn’t the correct headspace to be in when your capital is at risk. Conducting your own risk assessment using multiple credible sources before committing to a specific crypto project is crucial to avoiding a disastrous loss.


Never invest above your financial means

Investing, whether in crypto or traditional stocks and shares, always carries a level of risk and involves a level of uncertainty. Prices go up and they go down. For many, that’s all part of the appeal and is par for the course in investing.

The crypto market has rewarded financial freedom to people but at the same time, has the power to inflict financial stress on others.

Due diligence and patience are key

Money is an extremely emotional resource, and so much hinges on financial success or loss, so it’s no surprise that when hard times hit, it can hit hard for anyone who had dreams pinned on the hottest crypto project that’s now in disrepair.

Conducting due diligence and asking yourself as an investor, ‘what do I want to gain out of this?’ is important, and often overlooked. Grasping an understanding of the differences

between a legitimate investment versus gambling your money is the key distinction between success and failure in this market.

Never lose sight of your goals

For any investor, crypto winters can be a nerve-wrecking and testing time. But it’s important to remember that crypto is still a young and a mostly unregulated market, so volatile crypto winters will come and go.

Crypto is largely driven by its online community, but with that buzz comes a lot of noise and potential for fraudulent activity. Always invest within your means, don’t throw money at a Tweet, and always remember why you got into crypto – never losing sight of you aims will improve your chances of achieving financial freedom