BigONE Series: An Expert Guide to Crypto Investing in 2022

BigONE Series: An Expert Guide to Crypto Investing in 2022


If you are a seasoned cryptocurrency investor, you should be familiar with the inherent volatility of the market, with the price declines of Bitcoin and other altcoins, as well as the drama of all-time highs. Cryptocurrencies consistently high level of volatility point to why it’s prudent to conduct thorough research before investing in any cryptocurrencies in the market. New investors may already know that the bull run is the easiest time to make money, with cryptocurrencies reaching all-time highs and breaking new ground. However, as the history of cryptocurrency shows since the launch of Bitcoin in 2008 the bull market does not last forever. When crypto market experiences a correction, which is commonly referred to as a bear market, your hard work in research and planning will really pay off.


Surviving and prospering in today’s market

Following our recent expert AMA discussion on investing in 2022 we’ve put together this article to provide you with battle-tested and trusted strategies for surviving a market correction, including advice from our five experts featured in the AMA.



Thinking long-term: Having a long-term outlook on your cryptocurrency investments is a critical strategy for surviving a market correction. One scenario was in 2018 when Bitcoin went from $20k to less than $4k in a matter of days. Fast forward to today, and while it is currently in decline, at time of writing Bitcoin now sits at $37.5k, implying that holders that survived the ‘crypto winter’ of 2018 are profiting from their investments. When the market corrects, identifying blue chips such as Bitcoin and reorganizing your portfolio to hold these coins can be a good strategy once the market has recovered, as these cryptocurrencies are known to outperform the rest of the market in a bull run.


Blockchain consultant James Rennie explained his approach on the AMA discussion: “I would say that we may or may not be in a bear market but I don’t think that it really matters; and the reason I don’t think it really matters is that when you’re looking at a portfolio you have to make decisions based on what you can handle ahead of time; I spent a ton of time like studying different techniques to deal with the market so when I see the market crash, I’ve already made the decision ahead of time, so the decision doesn’t come emotionally.”


AMA panelist, The Cake CEO Ben Appleby, said the advice for new investors was to play it safe: “When you’re getting into crypto for the first time you want to be looking at the fundamentals, you will be looking at the long-term projects your Bitcoins, your Ethereums, the ones that have a lot of developer and community support; where you want to be most careful is the projects that may not have high integrity so your exotic kind of projects that might have been a clone from another project that’s been very easy to kind of set up.” While cryptocurrency advisor Michele Zilocchi said he didn’t think we were in a bear market: “I’m smiling because the more the price go down the more I can buy it at a cheaper price, so I’m not worried about it – it’s not a bear market it’s a crypto market!”.


Dollar-cost averaging: A tried, and tested investment strategy used during a market correction/bear market is dollar-cost averaging. It involves averaging is the practice of dividing a fixed amount of money into parts and investing in a specific asset based on the market’s trajectory at the time. Dollar-cost averaging is a strategy that allows investors to build their portfolios gradually. It’s best used in a bear market because it doesn’t put too much strain on investors’ finances. In addition, this method allows you to accumulate as many tokens as you want at various intervals, preparing investors for the resumption of a bull market. The one disadvantage of this small but frequent purchase method is that you may incur greater trading costs due to the regular fees incurred during purchase.


Trading futures in a market: Another strategy in a bear type market is to ‘short’ the cryptocurrency market. Most digital currencies are constantly in decline during a bear market, and investors can take advantage of this by shorting the crypto market. Shorting occurs when an investor predicts that the price of a digital asset will continue to fall and opens a short position. This strategy is not without risk, as the market is highly speculative and can move in the opposite direction. BigONE believes that investors should conduct thorough research and due diligence before dabbling in futures trading or shorting the crypto market. AMA panelist David Sime agreed that shorting the market was a viable strategy: “It’s quite good fun shorting a coin and obviously you don’t have to short a whole bitcoin you can short a small part of a bitcoin; but you have to be aware that if you do short and it goes up so say your $40, 000 Bitcoin goes to $45,000 then you’re going to now find $5,000.”


Hodl: The cryptocurrency space has long been known to reward investors who are patient. Bitcoin has been the best performing asset over the last decade despite its volatility. Long-term conviction and patience are essential for surviving a bear market and making significant gains in cryptocurrency. Holding on to your coins, or ‘hodling’ to use the crypto investor slang, is a good strategy if you are confident that your portfolio contains top performing projects that can drive the cryptocurrency market in the longer term.


Consider the previous bear market, when Ethereum dropped below $100, and Cardano dropped below $0.03. At the time, there was a lot of market turmoil, and people were debating whether crypto was a bubble that would never recover. Knowing from research that smart contract blockchains were the future and would experience rapid growth would have been invaluable knowledge. In retrospect, those prices represented fantastic buying opportunities. Buying the lows or bottoms of the market in coins, is a game of patience. If you have the patience and steady ‘diamond hands’ to hold onto these assets for an extended period, you will be richly rewarded. AMA panelist barrister Brian Sanya Mondoh said part of the risk was created by people investing in a rush without doing the research. “So, what happens when you don’t even understand the legal status of the white papers; so, what’s the project offering, what’s the community around it, what’s the supply, what’s the law of returns?”


BigONE believes that the current bear market will pass, and that cryptocurrency is unquestionably the future of finance. We have seen in the past that bear markets are a good way for new investors who have never been in a bear market to accumulate coins that can propel you to financial freedom in a bull run. These strategies can help you quickly navigate a market correction and emerge stronger. “Time in the market is better than timing the market,” as the saying goes. Approaching cryptocurrency markets with conviction and patience has proven to be a long-term strategy for both newcomers and veteran investors alike.