With the crypto market experiencing what seems to be the worst crash in history, former stockbroker, now revered as the ‘Wolf of Wall Street’ Jordan Belfort has previously shared advice on how to survive such turbulent times.
This follows the collapse of the FTX exchange that has made waving off the crypto winter even harder, and many investors continue to suffer losses.
Investors focus on a possible price bottom in the most prolonged downturn ever. Others are also looking for means to navigate the conditions in anticipation of a future rally amid the current market uncertainty.
In his counsel, Belfort explains how to handle the market in phases of high volatility. The compilation is a three-pointer on critical tips to navigate the market condition.
Focus On Long-Term
The Wolf of Wall Street maintains that Bitcoin (BTC) is a long-term store of value with the potential to generate returns in at least three years. In his opinion, BTC has strong fundamentals making it an attractive long-term investment.
Assuring that BTC is bound to grow in value, Belfort also acknowledged his inaccuracy in an initial prediction that Bitcoin would hit zero, Saying:
“If you take a three, four, or five-year horizon, I would be shocked that you didn’t make money because of the underlying fundamentals. I believe, are strong, and I think it’s a matter of time that you know where enough of it gets into the right hands; there’s a limited supply.”
Belfort believes the market will realize Bitcoin’s potential after the industry becomes wholly regulated.
Invest in Bitcoin and Ethereum
In a market full of different cryptocurrencies, the Wolf of Wall Street calls the attention of investors to Bitcoin and Ethereum, noting that these two assets have uniquely strong fundamentals. As regards BTC, Belfort highlights that the limited supply and growing adoption curve would undoubtedly have a catalytic effect in triggering a rally.
Belfort pointed out that Bitcoin has managed to put off the narrative that it is a scam, an action that sets the flagship crypto at a high chance of surviving the prevailing bear market. Referring to the current market downturn as a ‘cleansing,’ Belfort said, “Bitcoin is not going anywhere anytime soon. It will survive.”
On Ethereum, Belfort appreciated his similarity with Bitcoin, noting that it was the first cryptocurrency with many applications in decentralized finance (DeFi) atop which people can develop other technologies. In his words:
“So you have Ethereum there, which has gotten slaughtered as well, but if you’re long Ethereum, you know, and again nothing is a guarantee, the chances are that over the next three to five years that it’s going to come roaring back in the next bull cycle.”
Besides Bitcoin, Belfort cautioned that while some of the remaining crypto assets may survive, most have yet to be able to prove themselves.
Avoid Panic Selling
Cognizant that the market is currently grappling with widespread fear, the Wolf of Wall Street advised investors not to succumb to the panic and sell. According to him, what is happening now is necessary to terminate weak assets suggesting that money is made from such conditions.
Nevertheless, he suggests that investors remain keen on getting involved again, saying:
“… You need to take a deep breath and get sober about this and not play into the panic.”
Following the highs recorded in 2021, the cryptocurrency market has made significant corrections in 2022, driven by factors such as the current macroeconomic conditions. Notably, the market attempted a recovery for assets such as Bitcoin, but the FTX saga further eroded the gains sending crypto prices down again.
In the aftermath of the FTX crisis, where the CEO Sam Bankman-Fried was accused of customer funds mismanagement following an unethically close relationship between FTX exchange and Alameda Research, over $150 billion in the capital was wiped out of the market.
