Buying the Dip? Here is How -Not- to Invest in Crypto

It has been a couple of hard months for the cryptocurrency market ever since its capitalization reached an all-time high of $3 trillion back in November. With the bear market still going strong, investors are wondering what their next move should be when it comes to investing in crypto. However, as the current situation taught many, it is not about how to invest but how NOT to invest.

According to CoinGecko, the crypto market’s capitalization recently dropped under the $1 trillion mark back on June 13. The drop, which is the continuation of a bear market that started months ago, took the market back to where it was in January 2021. Institutional and private investors have suffered massive losses as a result, which has further exacerbated panic.

A year ago, the entirety of the crypto space was celebrating the increasing adoption of cryptocurrency by companies and governments around the world. Companies like Coinbase also marked important highlights by going public and disrupting the stock market. Now, the company has fired over 18% of its workforce as its shares crumble.

There is no denying it: Things look grim for crypto at this time. However, it is important to remember that cryptocurrencies are just a part of a bigger ecosystem. Blockchain, web3, NFTs, and other decentralized technologies continue to grow in adoption independent of the current crypto market. Andreessen Horowitz is an example of such growth as it raised a $4.5 billion crypto fund to invest in blockchain companies less than a month ago.

As most crypto investors know, bear markets represent a unique opportunity to “buy the dip”, which is why many are doubling down. However, while the current market is an opportunity, recent developments also have shown the importance of choosing correctly. Just take Terra’s crash as an example!

Earlier this month, Grit Daily House opened its door to blockchain enthusiasts, investors, and experts to talk about all things crypto. Stefan Rust, Founder and CEO of Laguna; Greg Gopman, Chief Marketing and Business Development at ANKR; and Christian Dickson, Senior Metaverse Director at Veritone, took the stage to participate in our “How -Not- to Invest in Crypto” panel.

During the panel, which was moderated by CoinDesk’s Jenn Sanasie, the panelists discussed a variety of topics such as challenges new investors face, choosing a project to invest in, and common mistakes. If you are interested in learning investment tips directly from those shaping the blockchain ecosystem, this is a panel you won’t want to miss.