3 crypto tips from ‘The Wolf of Wall Street’ J. Belfort on how to survive the market crash

3 crypto tips from 'The Wolf of Wall Street' J. Belfort on how to survive the market crash

The cryptocurrency market has experienced one of the longest downturns, and investors focus on the lowest price possible. Amid lingering market uncertainty, investors are also looking for ways to navigate the situation in anticipation of the next rally.

Indeed, the former stockbroker, commonly known as the “Wolf of Wall Street,” Jordan Belfortpreviously shared tips on handling the market in the phase of high volatility. Fineball therefore have prepared the following key tips by Belfort on navigating the market correction:

Tip #1: Have a time horizon for Bitcoin of 3-4 years

Investors have maintained that Bitcoin (BTC) is a long-term store of value and can generate returns after at least three years. According to Belfort, Bitcoin has strong fundamentals that make it more attractive in the long run. Mainly, as reported by Finbold, Belfort confirmed that Bitcoin is bound to keep rising while acknowledging he was wrong in his initial projection of the asset returning to zero.

“If you take a horizon of three, four or five years, I will be surprised that you do not get money because the basic foundation, I believe, is really strong, and I think it’s just a matter of time you know where. enough it gets into the right hands ; there is a limited supply,” he said said.

He believes that Bitcoin’s potential will be realized once the crypto sector becomes full be regulated.

Tip #2: Don’t look beyond Bitcoin and Ethereum

With thousands of cryptocurrencies out there, Belfort believes investors should focus on Bitcoin and Ethereum (ETH), indicating that the two assets have strong fundamentals. For Bitcoin, Belfort suggested that the limited supply and the rising adoption curve are two key catalysts that can trigger a rally.

He notes that the asset has moved beyond being a scam saying that the flagship cryptocurrency will survive the current market downturn, which he called as ‘cleansing.’ According to to Belfort:

“Bitcoin is the kind of thing that will survive this purge; it’s not going anywhere anytime soon. The case in point with Ethereum is very similar. It’s the first crypto that really has a broad use case in terms of decentralized finance (DeFi) for people to build other technologies. So you have Ethereum there, which has gotten slaughtered as well, but if Ethereum has been around for a long time, you know, and again there is no guarantee, there are chances that in the next three to five years it will come roaring back. next bull cycle.

However, he cautioned that beyond Bitcoin and Ethereum, the majority of existing assets have yet to prove themselves but acknowledged that some assets may survive.

Tip #3: Don’t panic

According to Belfort, with the cryptocurrency market grappling with widespread fear, investors should not play into panic and sell. He believes that the current correction is a form of liquidation of weak assets. He suggested that money is made in such a situation, but investors should look at the right moment to get involved again.

“Now, you are ready to panic and sell your Bitcoin and Ethereum. I will never tell you what to do, but you need to take a deep breath and be aware of this, and not play panic.<…> The entire crypto world is paralyzed by fear, so does that mean you should be out there buying in droves right now? Well, I’m not saying that, but I’m saying that if you go back in history, these are the times where the most money is usually made in today’s market,” Belfort said.

After hitting the highest in 2021, the crypto market has corrected significantly in 2022, driven by various factors, including the prevailing macroeconomic conditions. Although the market is trying to find a bottom for assets like Bitcoin, it is FTX crypto exchange The crisis has eroded the gains after the trading platform was hit by a liquidity crunch amid allegations of misappropriation of customer funds by CEO Sam Bankman-Fried.

The crisis emerged after Bankman-Fried’s business empire was revealed consists of two large entities -FTX crypto exchange and trading firm Alameda Research. In particular, the relationship between these two entities is considered unethically close, considering that Alameda’s financial data shows that its financial foundation mostly entailed FTX’s original token, FTT.

As a result, the market lost more than $150 billion in capital, with the FTT token ranking among the most hit assets. At some point, the token corrected by more than 80% with about $2.5 billion in capital outflow.

Disclaimer: The content on this site should not be considered investment advice. Investment is speculative. When investing, your capital is at risk.

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