We hear it, we see it more and more often, inflation is rising. A falling market that scares more than one, but can find interesting alternatives. Because, despite this decline curve, cryptocurrencies remain a solution for investment with minimal risk. We explain to you.
What do we call the bear market?
In addition to the catastrophic consequences for the people, the war between Russia and Ukraine has consequences for finance and the world economy. Conflict combined with overcoming the pandemic crisis, which leads to market decline. But let’s get back to the basics before we look at it in more detail. Wall Street uses the terms “bull” and “bearish” to refer to asset price trends. Then the bear market will simply be a market whose curve decreases by at least 20% over a long period. More precisely, it means that supply has exceeded demand, which has led to pessimism and strong distrust, especially among investors named on the occasion. Bears. And it is the latter who are behind the wheel. The more they cultivate fear, the more they slow down their actions and the more the curve stays down. A vicious circle from which it is not easy to break. There is a growing trend around bitcoin halving, a noticeable drop in miner rewards that we see every four years.
Why is this context conducive to cryptocurrencies?
It is always strange to read that a falling market can be a boon for investment. And yet, on this course you can still make a profit. We know the volatility of bitcoins. The cryptocurrency market operates cyclically, the most experienced investors know the principle of operation and are not afraid of this bear market. Moreover, this period may be an opportunity, a key point for short-term or medium-term investment in cryptocurrencies. Buying an asset when the price is lowest is actually a godsend. The value of bitcoin is falling, its purchase is becoming more affordable and promises profitable profits in the medium term. This phase of rebound remains, which remains expected
What types of investments to turn to?
In the world of cryptocurrency, there are several strategies to invest in a less dangerous way. Two of them have proven themselves in a few years and are in great demand.
DCA: the least risky investment
In traditional markets or in the cryptocurrency market, DCA is a star. This averaging of costs in dollars remains a low-risk operating process. The principle is to invest a fixed and regular amount to smooth out these savings by dividing the risk into a bearish or bullish market cycle. For those who want to invest stably, DCA is optimal. But whoever is talking about a safe investment is definitely talking about a reliable website.
LiteBit: an affordable and secure cryptocurrency platform
In the cryptocurrency platform ecosystem, LiteBit is one of the easiest to understand and most reliable on the market. The idea is to offer a platform that offers digital asset and transaction management services. LiteBit provides its users with a wide range of cryptocurrencies for purchase, sale or exchange. In addition to the secure aspect, such a platform greatly simplifies the interaction with decentralized financial services, as well as stock market monitoring. To democratize the world of cryptocurrencies, to introduce new levers of investment to accompany the whole process, LiteBit is fighting for this. Thanks to affordable, responsive and caring customer service, investors make better choices and take less risk. Then bitcoin would be a solution against inflation, an interesting alternative to profit from it. Current periods tend to slow investment, and exchange rate variations are frightening, but they are only a reflection of a cyclical asset. Its adoption is only in its infancy.
With LiteBit you get a free starting loan of 20 euros to your trading account. After registering and confirming the account. Only for new customers until July 31, 2022. LiteBit is registered with AMF as a service provider for digital assets. Thanks to French language support, it is currently the only one to offer a fast, easy and secure service with multilingual support for buying, selling and managing cryptocurrencies such as bitcoin, Ethereum and more than 80 other currencies.