The token universe: Five top tips for surviving crypto winter

Token Takeaways ✍️

✨ Crypto winter is a great time to focus on token technology rather than market prices.

✨ Many of the most successful token adopters stay engaged during downturns.

✨ As crypto runs 24/7, it’s a good idea to maintain balance by taking up other hobbies and interests.

The token space is known for moving in cycles. Since 2009, the ecosystem has seen several boom-and-bust market cycles characterised by extreme price volatility. New cycles typically start every few years as new innovations emerge and confidence in tokenization rises. 

The token universe gains popularity and welcomes new users with every new cycle. But it tends to suffer when the trend reverses. As market prices decline at the end of each cycle, interest in tokens wanes. Many become skeptical about crypto’s future potential, and it can take a while for prices to recover. 

The token space is currently in the midst of a prolonged “crypto winter” following a punishing 2022. For seasoned participants and new adopters alike, such periods can be testing. That’s why we’ve compiled a list of five tips for getting through market slumps. Think of it as your crypto winter survival guide. 

Please note: Investing in cryptoassets is risky. Due to the volatile nature of the cryptocurrency market, investors run the risk of losing their funds when they make an investment. Returns from cryptoasset investing are not guaranteed, therefore users should always be aware of the risks.

#1 Focus on the mission 🌌

During bull markets, token prices tend to dominate news headlines and conversations. As a result, it’s easy to forget that tokenization is setting out on a mission to empower millions of people worldwide. 

That’s why crypto winter is the perfect time to focus on token technology and learn about how it could have a positive impact on the world. The end goal for tokenization is to enable people to invest according to their interests, which could lead us to a freer and more equitable society. When prices decline due to volatility, it’s important to remember that the token revolution is a decades-long movement. 

While price rises can be exciting during bull markets, it’s never a bad idea to switch off from charts and think about the mission instead, especially during crypto winter. Those who do have a good chance at setting themselves up for long-term success. 

#2 Ignore the crypto winter noise 📣

The token space is very noisy. What does that mean? A lot of people have a lot to say about it, and not all of it is valuable. It can be difficult to filter out quality information from noise, and it doesn’t help that the space moves so fast. 

While the token space is noisiest during hype-driven bull markets, the noise doesn’t disappear during crypto winter. Negative commentary is common in news headlines and social media, which can influence the way people navigate the market. In 2022, many major media outlets called for the death of crypto after a series of major blowups in the space. 

The front covers of The Economist and Bloomberg Businessweek following FTX’s spectacular collapse in November 2021. BTC’s price hit a local bottom days before both stories were published.

Learning how to filter out noise is important as it can reduce the risk of making poor investment decisions. You wouldn’t want to sell your tokens at a low when people have declared the space as dead if they later rise in value. 

Noise can also come in the form of short lived narratives during crypto winter. While experienced traders can profit off such narratives, most people are statistically better off following the “Dollar Cost Averaging” strategy—investing a set amount into tokens like BTC and ETH on a regular basis—during market slumps. 

#3 Connect with friends 🫂

As the token movement is still in its infancy, the space is relatively small. It’s estimated that there are around 300 million token adopters worldwide, and it feels like many leave during crypto winter. This means it can be difficult for enthusiasts to find other passionate users. 

But it’s a good idea to make friends in the space as they can make learning more fun, offer helpful tips and ideas, and provide support during difficult times. Most importantly, having a solid group of friends you can turn to can help strengthen your faith in tokens when prices decline. 

Community is at the heart of the token movement. While it may feel like there aren’t many people interested in the outside world, every major token project has a vibrant community of enthusiastic users. Start off by joining us in the Discord and Telegram community. 

The crypto space can feel isolating. But there are many kind, passionate people who help make it a welcoming and unique community. 

#4 Stay engaged 👀

During crypto winter, many people who arrive during market hype leave the space as prices and activity declines. However, the most successful token participants are typically those who stick around and stay engaged

That’s partly because crypto winters are a great opportunity to learn about the ecosystem while it’s quieter. It’s also because market downturns have historically been the best time to invest in assets like BTC and ETH, when they are trading at a discount to their all-time highs. People who follow the ecosystem and commit time to learning are generally in a better place to conquer when momentum shifts relative to the rest of the world. 

While it’s good to stay engaged, remember to think about how you stay engaged. Avoid following too much negativity or making risky trades if you’re not sure what you’re doing. 

#5 Touch grass 🏕️

There are plenty of good reasons to stay interested in tokens when most others switch off, it’s important to maintain a balanced lifestyle

The token space runs 24/7 because it’s a global movement, teams are constantly innovating, and the market never closes. So it’s important to have the discipline to switch off—if you try to chase every development without taking a break, you may risk burning out. 

It’s always a good idea to engage in other hobbies and interests, get outside (or, as crypto enthusiasts like to say, “touch grass”), and prioritise your health and wellness. As crypto winter tends to be quiet, it’s arguably the best time to recharge and focus on other areas of life. 

Final thoughts on surviving crypto winter 💫

The token space can be inspiring, thought-provoking, and exhilarating, but it’s also a testing environment. Crypto winters are famously challenging, even for experts. But if you follow our key tips and adopt a long-term strategy, you should be equipped to win out. 

That brings us to our final, most important survival guide message: survive. Your goal should be to last in the space until tokenization fulfils its staggering potential. If you succeed, there’s a good chance you’ll be pleased you stuck it out. 

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