You may have gotten into crypto because you heard it was a get-rich-quick way.
And you may have been disappointed if you bought during the hype surrounding the bull market only to see your investment decline in value throughout 2022.
Plus, if last year's despair didn't get to you, this year's boredom might.
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But, speaking as someone who survived 2018-2019 crypto winterI can humbly say that if you can fight boredom and continue on your quest to build crypto wealth while the market is less exciting, you just might make it as a crypto investor.
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Here are some tips to help you stay focused while the crypto market is quiet:
1. Choose which crypto exchange is best for you
When you originally got into crypto, you may have bought digital assets from the first exchange you came across without giving much thought to their fees and features.
If you take a moment to review the best crypto exchanges out there, you may find that you have been paying very high trading fees on the exchange you currently use. For example, maybe you make instant purchases on an exchange where fees are as high as 2% when you could trade less than $1,000 worth of crypto per month on an exchange like Bitstamp for free.
If you plan to actively manage your cryptocurrency portfolio, trading fees may add up. Check out where you are trading and see if you can lower the fees and keep more of your profits.
2. Stick to Blue Chip Crypto Assets in the Bear Market
It's hard to know which hot new altcoin will go to the moon in the next big bull run. However, it is likely (although not guaranteed) that Bitcoin (BTC) and Ether (ETH), the native currency on the Ethereum blockchain, will rally and hit new all-time highs during the next big crypto bull run. These โblue chipโ digital assets have been around for 14 and eight years, respectively, and have been shown to hold value for longer periods than most other crypto assets.
So if you are dollar cost averaging crypto assets during this bear market, you may want to stick with assets that have rallied in previous cycles.
You can always invest more in the crypto risk curve, i.e. buy riskier altcoins, once we are in the early stages of a major bull market.
3. Learn what you are investing in
You've read The Bitcoin Standard: The Decentralized Alternative to Central Banking by Saifedean Ammous or The infinite machine: how an army of crypto-hackers is building the next internet with Ethereum by Camila Russo yet?
If not, now might be a good time to brush up on the history, as well as the ins and outs of the technology you're investing in.
If you really want to be a cryptocurrency investor and not just a short-term speculator, it could help you deepen your knowledge of the digital assets you own.
4. Do the math
Let's say you have $3,000 to invest, and you hope to turn that into $10,000 by the end of the next big crypto bull run.
look back on the past Bitcoin Halving Cycles as a means of gauging where the BTC price might head in 2024, after the halving.
If you think the price of BTC will top $100,000 after the next halving, then the dollar average cost of $3,000 worth of BTC while its price is well below $30,000 should take you past that. $10,000 mark.
Please note, however, that the price of BTC is not guaranteed to reach $100,000 and past performance of BTC is not a guaranteed indicator of future results.
5. Take a little breather
If you closely follow the crypto market day after day, you may want to take at least a little breather during the bear market, if only to preserve your mental health as a crypto investor.
Consider stepping away from the screen and "playing the grass" (slang for someone who spends a lot of time online to get out for a while) while things aren't so exciting.
You can still invest while you catch a breath, as you can still automate a dollar cost averaging strategy to continue buying the digital assets you love, even when you're not in front of a screen.
The cryptocurrency market will most likely rally at some point, and you better approach it with a clearer mind.
do not give up
According to an old adage, fortunes are made in bear markets and accumulated in bull markets.
Put more directly, successful investors buy valuable assets when they sell them at a discount and then sell them at a premium. They put their money in the market when the market is off, dull, or downright depressing, and take it out when the hype cycle is in full effect again.
You may have gotten into crypto thinking you would get rich overnight, and that may not have happened. But that doesn't mean you still don't have the opportunity to build wealth as crypto investor.
If that's your goal, then your job is to learn to stay committed to investing in crypto and not let boredom drive you out of the market when it's not as exciting.
