3 Steps to Finding Solid Opportunities Even in Tough Markets
|By Jurica Dujmovic|
These are difficult times for traders and investors alike — bearish price action leaves everyone with precious few things to look forward to.
Still, Weiss Crypto Portfolio editor Juan Villaverde says we do have something to look forward to: a cycle bottom.
And timing the bottom is something that occupies the minds of the majority of our followers, as well as other denizens of crypto Twitter. But timing the market is tricky, even if the market reacts the way you expect. If it doesn’t, trigger-happy investors can find themselves falling for bull traps if they act rashly.
For the uninitiated, a bull trap is a temporary reversal in an otherwise bear market that lures in long investors who then experience deeper losses. And right now, everything about the markets screams reversal:
So, it’s imperative that investors exercise caution, despite how ready they are to see the end of downside price action:
As an investor myself, I also find these times to be difficult to navigate. Luckily, I have our Weiss Crypto experts as colleagues. Experts like Marko Grujić, who spoke with me about how to trade and invest during bear markets.
I’ve summed up our conversation in this somewhat lengthy Twitter (TWTR) thread that I strongly suggest you read and take to heart:
As I said last week and earlier, the bottom may not be far ahead. The market is expecting it, our Crypto Timing Model is expecting it and long-term HODLers are expecting it:
However, not all HODLing is made equal, according to Alex Benfield, contributor to our Weiss Crypto Portfolio. He says that while the HODL mindset is the strength of crypto, there's nothing to gain from HODLing a token that doesn't have any activity or growth associated with it.
In other words, anytime you're HODLing a bad asset through the bear market, you're limiting your ability to invest in what could be the next bull market's winning asset.
So, how can you figure out a good investment from the bad, even in a bearish or neutral market?
First, you should always do your own research. A good starting point for this would be to visit our Crypto Ratings page, where we rate tens of thousands of cryptocurrencies to determine which ones have solid investment potential.
There’s a full explanation of how we rate our cryptos here.
Second, check the full range of useful tools we offer for free on our website. In addition to your Weiss Crypto Daily issues, which have the most up-to-date market breakdowns from our experts, you can also curate your own watch lists of cryptocurrencies you’re interested in following and set up alerts for any price changes or other metrics you’re watching.
To do this, simply go to our Crypto Ratings page and select the asset you’d like. Then, click on either “My Lists” or “My Alerts” to add it to either.
Third, check out our products and services page to see what services we offer from our top experts, who give you in-depth breakdowns of specific sectors within crypto, as well as specific “Buy” and “Sell” recommendations based on their model portfolios.
The crypto winter can’t last forever. But while it’s here, we’ll keep doing our best to provide unbiased, actionable advice so you can make the most of your capital in current market conditions.
Stay safe and trade well,