How To Survive Crypto Winter

Berry Mathew

How To Survive Crypto Winter


The history of the crypto market is filled with a series of prolonged upward and downward movements at different points in time. The upward trend is usually followed by a downward trend which has been described today as the bear and bullish seasons. In-between these two seasons, a third scenario has been identified when the prices of various crypto assets tend to remain at low levels, and often moving to new lows after ranging at the said level over a long period. This third scenario has been termed the crypto winter.

With the current downturn in the crypto market so far in 2022, many crypto traders now suppose that the market is currently headed to another crypto winter this year. Is this correct about the current situation? Are we headed for another crypto winter in 2022? Can crypto traders survive during this period? What practices are necessary for traders to minimize their losses and remain at the top of the winter season? If you are interested in finding out the best answers to these questions then you need to read this work carefully to get informed. 

What Is Crypto Winter?

Crypto Winter is an unfavorable market condition where there is a wild loss of buying appetite among investors, as a result of difficult market conditions that buyers are not convinced of the future of the crypto industry again.

Often, the crypto winter season sets in when the market fails to find new buyers after a long crash, with old investors losing their investments during the crash. Prices tend to stall at the low levels and keep going down gradually over a long period – say three to four years. 

When Does The Crypto Winter Begin? 

The crypto winter begins when the market fails to find new buyers after losing over 40% of its value. When prices stall at the lower levels after a massive fall then a crypto winter could be said to be around the corner. 

The first major Crypto winter was seen in 2018 when the price of Bitcoin and other Cryptocurrencies failed to rebound after a major fall, with Bitcoin losing over 70% of its value crashing from $20,000 to $7,500 at the beginning of the year 2018. Prices kept ranging at these levels and created more lows before buyers picked interest to buy again. This period lasted till March 2020. 

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How To Trade During The Crypto Winter

Crypto winter is a critical time every serious trader needs to be very careful with their investments to limit losses. Often, the prices of some digital assets could stall at a lower level and even dip further during the crypto winter. The best way to survive during the crypto winter is to be reserved in buying new assets and taking time to select only the strong projects; as the weak ones could crash due to increased selling pressures. 

For new traders who are eager to buy the popular crypto coins during this period, it is important to note that the best time to buy dogecoin instantly, or any other cryptocurrency of one’s choice, is when the prices are largely discounted during the winter season. Buying the dip is the most popular practice during the crypto winter. 

How Long Does The Crypto Winter Last?

There is no fixed duration that the crypto winter must reach before a new trend sets in. The major crypto winter in 2018 lasted close to three years (January 2018 to December 2020). The only important factor that determines the end of a crypto winter is when the buying interest returns to the market again. 

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