Crypto has taken a beating lately, with bitcoin and other currencies shedding a huge amount of their value.
Bitcoin (BTC) currently sits at $36,048.90, down 28.92% over the past month. After celebrity endorsements and highs upwards of nearly $68,000, the ongoing skid has transformed even some of crypto’s most stalwart defenders into skeptics. But in the immortal words of author Douglas Adams: Don’t panic.
It might be tempting to short the market and continue to bet on bitcoin collapsing further, but that’s not necessarily advisable. “The time to short is likely over and would be an emotional decision based on the idea that the market is ‘going to zero,’” said Scott Melker in an interview with Fortune. Melker is a crypto miner and investor who hosts the Spotify, “Wolf of All Streets.” “The upside of buying now is exponential, the upside of shorting is extremely limited.”
What you could do instead is buy the dip with the VanEck Bitcoin Strategy ETF (XBTF), which gives you exposure to bitcoin futures. Bitcoin is a volatile asset and has historic precedence for having big collapses just before huge gains. In December 2017, bitcoin fell from $20,000 to $3,200 before surging past previous resistance points. Just last May, the currency shed $30,000 of around $60,000 in value for a week and half before resettling.
Another option is staking, which involves locking your cryptocurrency on the blockchain for a minimum amount of time. This creates passive income. You can stake your wallet through exchanges such as Coinbase.
Speaking of Coinbase, crypto equities are another great option. The crypto crash has also brought down the value of equities, but they can be excellent diversifiers, and because they aren’t tethered to any one currency, they have potential to grow even if bitcoin gets overtaken by ethereum or solana at some point down the road. The Vaneck Digital Transformation ETF (DAPP) offers this crypto equity exposure.
For more news, information, and strategy, visit the Crypto Channel.
