How to Invest in Crypto During Market Swings

It's hard to choose the right earning strategy and much more challenging to find a perfect moment to buy crypto assets. In 2022, many users entered the market through Stoic near the peak, ignoring several fundamentals. In this article, we want to pinpoint the factors in play that you should pay close attention to.

1. Earning are made in the long run

Despite all the short-term risks and volatility, assets like stocks or crypto have had the highest long-term returns across all the earning tools. Whenever the stock or crypto markets were in a downfall, they always recovered at a later point in time. It's pretty challenging to identify market direction within a short timeframe. Yet, almost any entry point works out if you plan to hold for the long-term.

Take a look at the Bitcoin chart above - the x-axis shows the date of a hypothetical $10k funding, while on the y-axis, you can see the initial $10k funding value on June 1, 2022. So even if you have invested at the worst time, during the absolute peak in December 2017, you would still have around $17k today, up +70%. Yet, most BTC holders didn't wait - they sold their assets and left crypto. If they were a bit more patient, they would have taken advantage of a bull run erupting right after the crypto winter.

2. Buy Low, Sell High

History has shown that only a few have the power to predict the market's peaks and bottoms. The best time is only evident in hindsight. That's why any day is a good day to enter. But what we can say for sure is that today, after a major correction, is a much better time to invest than during the crypto market’s highs in 2021. Take a look at the below Bitcoin chart one more time, despite a significant crypto market correction, those who bought Bitcoin in June and July 2021 are still at a breakeven point from their initial funding. Yet most investors were scared to invest at that time, the few who understood the potential upside were buying low.

3. Cut down idiosyncratic risk

Few users can consistently beat the market by choosing the suitable projects that will outperform the market. After all, out of 20 leading cryptocurrencies by market cap, only five coins remained at the top in the aftermath of the 2017-2018 crypto winter. By the rules of investment theory, a diversified portfolio is best for mitigating risks and earning stable returns.

With Stoic, you buy a part of the whole crypto market, thus acquiring a diversified portfolio that's regularly rebalanced. Stoic's algorithm adjusts to the market conditions to deliver the earnings to your account.