3 Ways To Protect Your Profits During Crypto Winter

Last Updated August 22nd 2022
5 Min Read

Invest in these three altcoins and secure your crypto portfolio. 

Cryptocurrencies are like a maze, it’s tough to determine where to invest and when to make the right move. The beginning of 2022 was not a good start for several cryptocurrencies. Rising inflation, regulatory concerns, and various other factors have pushed the crypto market to a major “crypto winter”. Although some of the coins are regaining their rally, the market is not yet completely recovered from its bearish scenarios. 

The best way to retain value during this crypto winter is to upgrade and diversify your portfolio with quality investments with massive growth potential. Given the recent market hit, several potential cryptos are trading at a discount. So here are the best 3 ways to protect your profits during crypto winter. 

  • The rising popularity of the Binance exchange will bolster the growth of BNB in the coming years. 
  • Thanks to its flexibility and scalability, Ethereum has become the blockchain of choice for large investors and institutions. 
  • Solana continues to surprise investors with new infrastructure and innovations. 

 

Binance Coin (BNB)

Investing in BNB now could be the best way to protect your profits during the crypto winter. 

BNB is the native utility token of the world’s largest exchange, Binance. From staking and farming to a fully-fledged and rapidly growing NFT marketplace, Binance offers various utilities for its users, highlighting its promising nature. 

There has been a substantial reduction in the value of the coin this year due to the crypto winter looming over the market. However, BNB has proven its resilience earlier in the 2018 crypto winter, and fast forward to 2022, the coin still upholds its resistance and price potential. Binance is now taking major steps to enhance its regulatory compliance. CEO Changpeng Zhao mentioned in a tweet that the exchange had spent over $1 billion on compliance efforts.

The popularity and increasing activities on the Binance exchange also make BNB one of the best long-term investments to secure your profits. It has also entered into a series of partnerships, for instance, with Cristiano Ronaldo, for the promotion of non-fungible tokens (NFTs) and TikTok star Khaby Lame. The plan to launch NFT collections with these celebrities would essentially boost its market share. However, these moves have already bolstered Binance’s popularity, pushing BNB more to the mainstream. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Ethereum (ETH)

The Merge would significantly enhance the Ethereum network, solidifying its position as the best long-term investment to generate profits.  

Ethereum is not merely a digital currency but a technological platform for hosting NFTs, smart contracts, DeFi apps, and decentralized applications. There is an entire ecosystem around Ethereum. 

There are several reasons Ethereum could now be a superior long-term buy, making it the best way to protect your profits during crypto winter. Although ETH is currently in between a cumulative drawdown of around 60% since its November highs of $4,891.70, investors are piling into ETH because of bullish sentiment around the upcoming Merge. The long-awaited and much-promised upgrade will finally convert the network from a Proof-of-Work to a Proof-of-Stake consensus mechanism. This will make Ethereum faster, cheaper, scalable, and much more energy efficient, attracting more projects.

In addition to this, the shift would transform ETH into a deflationary asset, increasing its attraction as a possible inflationary hedge. Moreover, a rising amount of ETH would be locked up and unavailable for trading, naturally driving up the price of ETH, justifying its value as the best long-term investment asset. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Solana (SOL)

With multiple users and developers choosing the network, Solana’s ecosystem has shown impressive growth. 

Solana, the blockchain platform hailed as the ‘Ethereum killer’, was designed to achieve high-speed transactions and low gas fees. It is a decentralized blockchain and also a host for crypto applications and projects like Degenerate Apes Academy NFT, the first major NFT project on the Solana blockchain. There are numerous NFTs, DeFi applications, meme coins, and metaverse play-to-earn games being built on the Solana blockchain. Unlike other cryptos, Solana has a unique blockchain technology. The hybrid combination of Proof-of-Stake and Proof-of-History makes it one of the fastest blockchains, with a transaction speed of 65,000 transactions per second (TPS) with near-zero fees and super-low gas fees. 

Solana aims to become a Visa of the crypto world in the future with its high-paced performance, low fixed costs, and network stability. The network has offered a flawless and reliable ecosystem since its inception. The Solana ecosystem is growing at a faster pace today, and the launch of its own online store, Solana Pay which has the potential to establish itself as the future of payments, is a clear indication of this fact. 

Solana has already solidified its position as the best go-to smart-contract platform for NFTs, gaming, and DeFi. The network’s progress and upgrades on its blockchain will make it more developer-friendly, offering Solana more privacy and resilience. Moreover, the network has plans to capitalize on the growing play-to-earn market, with a greater focus on NFT-based gaming. 

Therefore, investing in SOL now could be the best way to protect your profits during the crypto winter, as the growth of its network and the price history of SOL reflect the long-term prospects of this coin.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Bottomline

Balanced investment in these three cryptos could be the best way to protect your profits during the crypto winter. That said, diversification is the fundamental principle of investing to help reduce a portfolio's risk. Managing risk in this volatile market during a prolonged bearish scenario is necessary to protect your bottomline. Investing in cryptos with long-term prospects could be the best way to ensure profitable returns, along with security in the long run.  

Read More:

Where To Buy Ethereum (ETH)

How To Buy Binance Coin (BNB)

How To Buy Solana (SOL)

Best Future Crypto Coins To Buy

Best Long-Term Crypto Investments

Fastest Growing Cryptocurrencies

Best Altcoins To Buy

Best Beginner Crypto To Invest In

Best DeFi Coins To Buy