How should you make the right investment choices in these times? Which tools are necessary for that? Our expert, Diamond Pigs co-founder and popular trend watcher Vincent Everts shares his advice and experience, having witnessed multiple bear markets in the past.
Should we be worried about the current crypto winter?
If you’ve been in crypto for years like us, you have experienced multiple bear markets by now. I’ve been in this space since 2014, which means this is the sixth crisis I am going through. Seeing drops of 70% or more can be fairly normal in those periods. But if this is the first bear market you’re experiencing, you may temporarily feel like the crypto world is going down. But it’s not.
What should we do in this kind of market?
If you have never invested in crypto, it is the best moment to step in. If you already own crypto, especially in these times, keep your head cool. Think about it like this: stocks usually go up and down. Crypto goes up and down too, but much faster and steeper.
So what do you need to do? Keep your mindset focused on the long term?
More and more people start getting into crypto, which means demand is ever increasing.
Part of this growth has to do with the fact that the crypto market is getting more popular and some assets such as Bitcoin and Ethereum are offered to invest in by many parties.
At the other end of the spectrum, there are many volatile small caps coins that people get into for short-term trading. Whatever strategy you choose is up to you. But if you are in it for the short term, you’d need to determine when is the good time to step in and out.
To do that, you’d need to understand the current market condition and narratives and become familiar with technical analysis to analyze the past price development of each coin.
There are many coins out there. How do we know who will be the winners?
It is imperative to understand which company in the crypto space is solving a real problem. Then, you would need to learn about the team behind each coin as well as the market narrative. In the past, we have seen Solana (a layer 1 protocol) going up by a hundred-fold. But who will be the next big hit? Is it going to be in NFTs? Or in the Metaverse space or micro payments powered by blockchain technology?
More and more coins arise with a specific use case, like in healthcare. These tokens can only be used to buy (and thus support) medical products. Also, consider tokens that can be used to support democracy or the energy transition for example. You can choose the ones that you are most knowledgeable. Crypto is ‘smart money for a reason, unlike ‘normal currency’ it may be used for more purposes than investing only.
Take NFTs. Usually, an artist would get a fixed price for their art. In the crypto scene, they get a percentage (like 10%) of the profit. Increasingly, people see the value and opportunities of getting into crypto instead.
So think about which tokens will serve a higher purpose in our society.
Even changes that look small in society, may turn out to have a large impact. In the upcoming years, we may be able to get a coffee in many places paying with our crypto. This is already happening. People find bitcoin interesting because it seems relatively stable. But what we find more interesting is that we will be able to perform millions of payment transactions per second.
Second of all, the infrastructure of crypto is rapidly improved by becoming more and more scalble, creating more possibilities. We are moving from high to much lower energy use. From ‘proof of work’ we are moving to ‘proof of stake’. Ethereum for example is currently on a transition to proof of stake. Many big coins are already built on proof of stake protocls and i see it as a very promising development.
How do the Diamond Pigs experts help during this market?
Long-term investors are at the right place with Diamond Pigs. Our team is highly knowledgable in the crypto space and can analyze the companies in the space and each coins’ tokenomics to select the right coins to invest in. At the same time, we use sophisticated algorithms to determine when to enter and when exit a certain long position. It’s a powerful combination between the people who know a lot about the coins and the smart bots supporting the daily trading activities.
Good to know:
IIn our strategies, we work with coins that add something good to the world, making them sustainable investments. We also take away the worries that holders may have. We’ve created software that analyses very accurately what the coins are doing and protect against downward trends. We call this the ‘downward protection robot’.
So Never Spoil a Good Crisis, right?
This downturn was tough and painful. Think back on May 12 when LUNA dropped rapidly, it was a big disaster, being one of the top 10 coins that went out. LUNA was the 3rd biggest stable coin and it was dumped so much that the whole ecosystem went down and many parties needed to get liquidated. Other currencies had the problem that they were afraid of inflation, war, supply chain problems and so interest rates went up. As a result, people got rid of their assets. In times of extreme fear most people don’t have “diamond hands” and escape back safely to USD dollars. The problem is that they think short term and, in that case, loss out on their investments.
We, however, in Diamond Pigs, developed new techniques to prevent the effects of downturns in the future. Never Spoil A Good Crisis is still the credo yes. As many coins have dropped up to 90% of their value,there are great opportunities in the market right now. We are here to support our crypto holders, protect them against downturn trends and grow their assets in good times with our team knowledge and technical expertise.
Join Us. Here in Diamond Pigs, we offer you crypto peace of mind. By executing superior investment strategies powered by our meta-bots technology directly in your digital wallet. We protect your crypto during bad times and grow it during good times. Interested to learn more?