Crypto Crash? Your Next Action Explained by Crypto YouTuber

May’s crypto market crash has really brought traders to their knees, with the entire market falling by close to 50% in recent days. What’s an investor got to do to make it through this time?

YouTuber Nathan Sloan, the founder of Investing Made Simple, has got some ideas. In a recent video, he offered to share with the community what he likes to do during a market crash.

The video, titled “Crypto Crash – Do THIS now!” looks at how Sloan, a seasoned worker in the financial services sector, deals with a crypto market crash. After providing the necessary disclaimers, he jumps into his ‘crash checklist’.

This list includes checking 4 major signals for traders to research before making a decision regarding their crypto. First, Sloan looks at what stage the crypto market is at the time of the crash, as in, is this one of the big market crashes that could potentially last for a couple of years, or is it just a mid-cycle correction phase.

Second, he looks to the news to figure out, what just happened? Most importantly, as Sloan points out, investors need to check whether the crash is an irrational one or has something “fundamentally changed”.

Following this, the YouTuber looks at a price chart for some analysis and then cross-checks his conclusions with other experts in the industry. This will then be the basis for his decision to buy, HODL, or even sell.

For the case of this major crash, he notes that Bitcoin is pretty far from its next halving event. This has historically marked major crash periods and happens roughly every four years. Also, it seems like a slowdown before a huge run-up to the 4-year cycle’s peak, as observed in the past.

Next, he looks at recent events, notably China’s crypto ban and Elon Musk’s reversal from Bitcoin. With this, he notes that, especially in the case of China, the same has happened before as well. Still, the crypto market has recovered just fine.

Finally, he looks at a price chart that indicates the drop is likely to be one that’s leading to a future high. This information, he crosschecks with other known crypto analysts on the internet and finally reaches his decision. At this time, he decides to invest in the crypto market again, and in Ethereum.

The reason his investment choice is Ethereum is that its not just a currency, but also a platform. Further, he added that he would’ve also invested in Binance for the same reason had BlockFi, the platform he uses, allowed it.

He also noted that the further investors go from the top 10 currencies, the larger risk they take. Owing to the market’s current condition, such advice from crypto experts is extremely welcome by traders who are struggling with their next move.

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Source: https://coinquora.com/crypto-crash-your-next-action-explained-by-crypto-youtuber/