The crypto asset market in the middle of 2022 is
likely to decline. However, crypto asset investors do not need to worry because
a declining market or what we call a bear market is not always bad.
Based on trading data from Indodax which is an
Indonesian crypto exchange on May 12, 2022, the price of Bitcoin touched the
price of Rp. 401,413,299, then Ethereum with the IDR pair touched the price of
Rp. 26,662,493 and for Ethereum with the USDT pair it touched the price of eth
usdt at 1817,191400 USDT.
Indodax CEO Oscar Darmawan said that the decline in
crypto prices basically occurred because there were more selling actions than
buying actions by investors so that there was more supply in the market than
demand. However, this massive selling action certainly occurred due to the
negative sentiment that occurred recently.
“I think the negative sentiment that caused crypto
to decline the last few days was due to the Fed's policy of raising interest
rates. This policy aims to reduce inflation in America which is soaring.
Therefore, it is not surprising that the “whales” (a term for investors who
invest in crypto in large quantities so that the impact can be felt in the
market) choose to sell their crypto assets and leave first,” explained Oscar.
Looking at the crypto market which is declining
significantly, Oscar considers that investors tend to wait so that the movement
of the crypto market itself tends to move slowly to be bullish again.
In times like this, there are some trading tips that
can be used when dealing with a bearish market. Oscar Darmawan said that in
crypto trading or anything else, money management is very important whether the
market conditions are bearish or bullish.
“If an investor has good money management, after
all, market conditions will not affect him too much. In fact, if someone has
bad money management, even when the market is green, he will not reap profits.
So, someone needs to have good money management so that they can understand
when to return to the market according to the budget and investment plan that
has been made,” he said.
Then for the second tip, investors can also take
advantage of this condition by buying crypto because the price is being
discounted. This term is often referred to as buy the dip.
“This buy the dip condition is usually done by
several institutional investors such as Microstrategy Inc or the country of El
Salvador, which has several times bought bitcoins for their country's foreign
exchange reserves when the price was discounted. After investors buy the
crypto, investors can keep it, and sell it when the price rises later,
"explained Oscar.
Because according to Oscar Darmawan, often during a
market decline like this, there are times when the price of Bitcoin and others
suddenly increases drastically and doesn't go down anymore.
“That is, a decline like this is still not too
worrying. Analysts still mention that there is still a high possibility that
Bitcoin and other cryptocurrencies will rise suddenly and drastically. Indodax
has experienced something similar before. If you look at it historically, a
bearish pattern like this will still happen and will most likely be followed by
an All Time High again later," he said.
By using the buy the dip trick, investors can
increase their crypto portfolio. However, even though investors want to buy the
dip technique, Oscar advises investors to be careful, keep using cold money,
choose crypto assets that have good fundamentals and have large
capitalizations, and stick to the trading plan that has been made.
Finally, investors can look at other crypto assets
that are not affected by the Bitcoin price drop. At Indodax, we give our
members the option of investing in short tokens, in which the Short token
system is the opposite of a crypto asset. If the crypto goes down, the crypto
short token will go up and vice versa.
"At Indodax, we provide several short tokens
such as HEDGE and BEAR which are short tokens from Bitcoin, BNBHEDGE which is a
short token from BNB, ETHHEDGE which is a short token from Ethereum, XRPHEDGE
which is a short token from Ripple," concluded Oscar.
As additional information, Indodax is the largest
and most trusted crypto asset trading company in Indonesia that trades more than
200 crypto assets and serves more than 5.3 million members and members can
transact starting from 10 thousand Rupiah. Indodax has an offline counter that
can be used by members for consultations located in the Sudirman office center,
South Jakarta and Sunset Road in Bali.