The current market crash has many NFT and cryptocurrency investors wondering what to do with their assets. It’s important to carefully consider your financial situation and do your own research before making any investment decisions.
Having a long-term perspective and not getting too caught up in short-term market fluctuations is crucial.
Hold blue chips and Invest on Builders
Blue Chip Projects
The first strategy for dealing with the current market crash is to hold onto well-established “Blue chip” projects and “Builder” projects that are actively adding value to the ecosystem. Typically, “blue chip” projects are well-established and have a large war chest of money.
Unfortunately, not everybody can afford to buy and invest in these blue chip projects, and that’s where the next category is.
Invest in Builders
While investing in established “blue chip” NFT projects can be a safe and reliable option, it may also be worthwhile to consider investing in the NFT projects of “builders”. These projects may not be as well-known or established as the blue chips, but they are actively working to build tools and add value to their community and the NFT ecosystem overall.
Holding onto these projects may allow you to weather market storms and potentially see your investments recover in value.
It’s important to carefully consider your financial situation before making any investment decisions and to have a long-term perspective. Consider the builders who have continued to work on their projects even during difficult market conditions, demonstrating their faith in the crypto market and NFT space.
These builders are constantly striving to improve and add value to their projects, rather than abandoning them. Investing in these projects can support the growth of the NFT ecosystem and potentially bring financial rewards.
Look for discounts on quality NFTs
The current market crash presents an opportunity to buy quality NFTs at a discount. Solana’s price has dropped significantly, and collections have also seen a drop in their floor prices, creating a double discounting effect for quality NFTs.
For example, the Ok Bears collection has gone from a floor price of 150 Solana (equivalent to $12,000) to a floor price of 100 Solana (equivalent to $4,000). Now is a good time to buy quality NFTs due to double discounting. And most importantly, to do your own research and consider your financial situation before making any investment decisions.
Consider using the market crash to accumulate more of your desired NFTs and cryptocurrencies at lower prices, if financially feasible. This strategy allows potential profit if market recovers.
NFT & Cryptocurrency Staking & Dollar-Cost-Average in.
Accumulating more of your desired cryptocurrencies at lower prices can be a strategy for dealing with the current market crash. The current price of cryptocurrency may represent a good buying opportunity. Dollar cost averaging can spread out risk.
It’s important to consider your financial situation and do your own research before making any investment decisions. Having a long-term perspective and not getting too caught up in short-term market fluctuations is also critical.
Staking Your NFTs
NFT staking allows individuals to earn rewards by locking their NFTs on a platform or protocol. This allows NFT holders to put their idle assets to work without having to sell them, similar to how proof-of-stake cryptocurrencies work. In order to participate in NFT staking, individuals simply need a Web3 wallet and a staking service that supports the collection they own.
Now that you understand the basics of NFT staking, it’s important to have a reliable and secure wallet to store your digital assets. Here are our top picks for the best mobile crypto and NFT wallets of 2023 for maximum safety.
Pros & Cons
One of the main benefits of NFT staking is the opportunity to put your idle digital assets to work. Staking allows you to earn rewards on your idle NFTs without selling them.
Additionally, NFT staking allows you to engage with projects and communities by providing you with the chance to receive utility tokens as rewards.
NFT staking often comes with additional benefits, like voting and governance rights. Overall, NFT staking can be a great way to make the most out of your idle digital assets while also becoming more involved in the NFT ecosystem.
However, there are also potential risks to consider when staking your NFTs. The potential of scams, as the NFT industry is still relatively new, and it can be difficult to distinguish which staking platforms are trustworthy. It is critical to do your own research and due diligence when considering staking your NFTs.
Additionally, NFT staking can be affected by price volatility. It is essential to carefully consider the terms of your staking platform and whether the expected rewards outweigh the risks before deciding to stake your NFTs.
Staking Your Cryptocurrencies
Staking cryptocurrencies involves holding a certain amount in a wallet and participating in the maintenance and validation of the blockchain network. This reward can come in the form of additional cryptocurrency or a share of transaction fees. Staking is often used in PoS cryptocurrency networks.
To start staking cryptocurrencies, you’ll need a compatible wallet and enough of the cryptocurrency. If you’re interested in learning more about how to start earning cryptocurrency through staking, be sure to check out our article on Binance Earn, a popular platform that allows users to earn cryptocurrency through staking and other methods.
Dollar Cost Average
Dollar cost averaging is an investment strategy where an investor buys a fixed amount of an asset at regular intervals.
By buying a fixed amount on a regular basis, an investor can potentially take advantage of lower prices and average out the cost of the investment over time. Dollar cost averaging does not guarantee a profit, and there is still the potential for losses.
The Last Rule is “Family Life First”
This might be the most essential rule of all of them.
The final strategy for dealing with the current market crash is to prioritize family and real-world responsibilities before investing in cryptocurrency or NFTs. Make sure basic needs are met before investing in risky, volatile assets.
Take care of bills and other responsibilities before investing in crypto and NFTs. Remember that these markets can be volatile and consider your financial situation before making any decisions. Do your own research.