4 Steps To Survive & Thrive During Crypto Winter

The price of Bitcoin is down more than 70% from its all-time peak, and the cryptocurrency market as a whole has lost more than 50% of its market cap, leading to what’s known as a ‘crypto winter’. Crypto Winter is a term used to describe the current state of the cryptocurrency market. Many investors believe that the market is in a slump and that prices will not rebound anytime soon. Despite this, there are still some cryptocurrencies that are worth holding onto, and buying more of, during this period.

So, if you want to create a “cold-resistant” crypto portfolio to withstand these challenging times, make sure it has these 4 characteristics:

#1 Large Market Capitalization

The first feature of a promising cryptocurrency that can withstand the crypto winter is having a large market cap. The larger a crypto’s market cap, the more capital it requires to hammer its price down.

#2 Ease of Access

The second feature of crypto that can withstand the crypto winter is its accessibility. This means it needs to be available on the major crypto exchanges, popular trading platforms, CFD platforms, and even exchange-traded products such as ETFs.

The more accessible a crypto is, the easier it is to invest in it, and chances are these coins will be bought the first during the next bullish cycle.

#3 Funding

The third feature of a crypto that can withstand the crypto winter is having a lot of institutional funding. Crypto projects need money to survive and continue developing even during a crypto winter.

#4 Low Regulatory Risk

The last key feature of a crypto that can withstand the crypto winter is having low regulatory risk. As CeFi implodes and CBDCs come onto the scene, the likelihood of crypto regulatory oversight expanding has dramatically increased. Unfortunately, a regulatory crackdown on some cryptocurrencies during a crypto winter makes surviving a crypto winter so much harder.

Bottom line: At the bare minimum, if you’re holding a cryptocurrency with these four features, it will have a better chance of surviving crypto winter and thriving in spring.