We hear it, we see it more and more, inflation is rising. A falling market that scares more than one, but may find interesting alternatives. Because despite this falling curve, cryptocurrencies remain the investment solution with the lowest possible risk. We explain to you.
What do we call a bear market?
In addition to the catastrophic human consequences, the war between Russia and Ukraine has financial and global economic consequences. The conflict, coupled with the exit from the pandemic crisis, which leads to a fall in the market. But let’s get back to the basics of the subject before discussing it in more detail. Wall Street uses the terms “bullish” and “bearish” to refer to asset price trends. Then a bear market would simply be a market that has a curve that declines by at least 20% for an extended period. More specifically, it means that supply has outstripped demand, leading to pessimism and strong distrust, especially among investors, who have been dubbed “bears” for the occasion. And it is the latter who pull the reins of the curve. The more they cultivate fear, the more they slow down and the more the curve remains downward. A vicious circle from which it is not easy to escape. The uptrend tends to be around the bitcoin halving, the notable drop in miner rewards that we see every four years.
Why is this context favorable for cryptoassets?
It is always amazing to read that a falling market can be a boon for an investment. And yet, you can still make a profit from the course. We know the volatility of Bitcoin. The cryptocurrency market is cyclical, the most experienced investors know how it works and are not afraid of a bear market. Moreover, this period can become an opportunity, a key moment for short-term or medium-term investments in crypto assets. Buying an asset when the price is at its lowest is a godsend. The price of Bitcoin is declining, its purchase is more affordable and promises profitable profits in the medium term. Remains this rebound phase that remains pending
What types of investments should be considered?
In the world of cryptocurrencies, there are several strategies for less risky investments. Two of them have proven themselves for several years and are in particular demand.
DCA: the least risky investment
In traditional markets or in the cryptocurrency market, DCA is a star. This dollar cost averaging remains a low-risk transactional process. The principle is to invest a fixed and regular amount to smooth out these savings by spreading the risk over a bearish or bullish market cycle. For those who want to invest in a sustainable way, DCA is the best option. But whoever talks about a reliable investment is inevitably talking about a reliable website.
LiteBit: an affordable and secure platform for cryptoassets
In the cryptocurrency platform ecosystem, LiteBit is one of the easiest to understand and most trusted on the market. The idea is to offer a platform offering digital asset and transaction management services. LiteBit provides its users with a wide range of crypto assets to be bought, sold or exchanged. In addition to the security aspect, such a platform greatly simplifies interaction with decentralized financial services, as well as monitoring the stock market. In order to democratize the crypto asset universe, to introduce new investment leverage to stay on track throughout the process, LiteBit is campaigning for it. With affordable, responsive and caring customer service, investors make better choices and take on less risk. Then bitcoin will be a solution to the problem of inflation, an interesting alternative to profit from it. Current periods tend to slow investment, fluctuations in the exchange rate cause fear, but they are only a reflection of a cyclical asset. Its adoption is still in its infancy.
With LiteBit you get a free €20 start-up credit to your trading account. After registering and verifying your account. For new customers only until July 31, 2022. LiteBit is registered with AMF as a service provider for digital assets. Supported in French, it is currently the only company to offer a fast, simple and secure service with multilingual support for buying, selling and managing cryptocurrencies such as Bitcoin, Ethereum and over 80 other currencies.