The stock market is undergoing one of the largest corrections since the beginning of the year. Stock prices tend to go down, and investors are looking for “safe havens” to wait out the next fall. It is at such moments that the question arises: what assets to transfer money to and how to preserve capital during a period of financial turbulence. I choose crypto and stablecoins.
Instead of stocks – bitcoin
The global stock market has entered a phase of serious correction. The chart shows that the shares of almost all companies included in the S & P500 index are falling in price. This trend will continue for several more weeks, and then recovery will begin.
In fairness, it should be noted that a similar situation is observed in the cryptocurrency market. However, the crypto market is recovering faster than the stock market due to the inflow of capital from retail investors, who are usually “bought” in coins during the fall.
As you can see from the table, at the time of correction, stablecoins remain the most reliable assets. It is in them that cryptocurrency investors prefer to wait out market corrections, and this is the right decision. Unlike other crypto assets, stablecoins are not subject to volatility and are able to save investors’ money from the price fluctuations of assets, both stock and cryptocurrency.
Read Also: Stablecoins Become an Investment Tool – Coinbase
However, converting capital into stablecoins will not increase it in any way. More effective strategies are needed during these times. So, what to do if there is a correction in the market and you are not ready for it.
Read also: The most promising altcoins this fall – expert opinions
Step 1. If you have diversified assets, then you will not feel the consequences of the correction. It is much worse if all your money was kept in one asset. In this case, the correction will hurt your bank account.
Step 2. Convert your capital into stablecoins that don’t change in value during turbulent times. This will reduce losses and calmly wait out the correction period.
Step 3. Has the market dropped? Fine! It’s time to buy assets at discounted prices. Pay attention to bitcoin, ETH, as well as coins of projects with a real and finished product. I mean tokens like DAOvc, SOL, DOT and others. These are companies that are already known in the market and have a huge development potential.
Step 4. Just wait! Don’t fuss and get into coins if you don’t know anything about them. Don’t buy meme coins and shit coins if you don’t understand how market speculation works. You risk losing your last savings.
Remember that any correction is temporary and growth always follows. Therefore, at such a time, it is better to properly prepare for recovery and stock up on worthwhile coins than in panic and confusion to drain the last money on dubious assets.
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