On October 17, GateChain testnet release meetup themed “2019 GateChain Building the Security Gate. io Guarding The Future” was held in Ho Chi Minh city, Vietnam.
In this meet-up, we organized a panel to let our guests share their thoughts about how to stay intact in the face of bear market. After all ,it is never too late to prepare against the rainy day.
Tina（Gate.io Vice President of Asia Pacific）
Lou jiyue (TAMC founder)
Cici wu(angel investor)
Xiao Baoxu (Block.cc CEO)
We discussed 6 questions revolving around risk-avoiding strategies, here is the memoir :
Host: what are your views about the achieve the stable gains?
Tina: it’s not easy to achieve stable returns in the crypto world. Well, there’s a good range of product offers, but very little of them works . Gate.io HODL&Earn, including Lock-up&Earn, Margin investment plan and Crypto-backed Fiat Loan , are relatively low-risk products with stable returns.
Lou Jiyue: every investor should learn to think of themselves as an investment analyst, you are responsible for your own investment decisions. They need to keep updating their investing knowledge and methodology.Profiting from investments follows a pattern, once you grasp the pattern , it all becomes simple . Successful trading is a dull and lonely process to give priority to steady gains, while the failed deals almost always lose control when it comes to drastic gains. The circle for big ups and downs can be self- fulfilled and it is actually difficult to act cool and reap the benefits when you are in downward spiral .
Cici wu:I think it varies from person to person. If you have a large amount of cryptocurrencies, it is recommended to invest stable currency or anchoring currency; If you don’t have much to invest , periodical investment plan for bitcoin may be more suitable for you.
Xiao Baoxu: first of all, when we talk about the benefits, there must be both benefits and risks. Every product varies in terms of relative returns and risks. Second, everyone has a different understanding of stable returns. Therefore, the stable return should be that everyone chooses the investment method that can provide the highest return under the acceptable risk according to his own situation.
Host: At present, there are many financial products on Gate.io’s disposal , such as periodical investment plan , margin investment plan and fiat lending. Which of these financial products are 100% principle guaranteed, and what are their advantages and disadvantages?
Tina: in 2018, Gate.io launched various wealth management products in the bear market. Before that, cryptocurrency believers held coins without any interest. Some of the financial products like fiat lending and margin investment plan, is 100% principal guaranteed. .If investors are uncertain about the trend of the market ,they can try periodic investment plan as well which is cost-balanced in terms of a long run.
Loujiyue: periodic investment has several characteristics:stable income, simple procedure and time-saving. There will be a compounding effect. With time going by, the compounding effect is becoming a very key factor. Compounding effect takes a long time to fully manifest so that it is not suitable for short-term market fluctuations .
Cici wu: both periodic investment and Fiat lending are very much like the ones in traditional financial industry. Fiat lending is more like the traditional financial margin business.
Xiao baoxu: first of all, I would like to thank gate.io platform for the development of various financial products in the bear market for users to achieve asset appreciation in bear market. As for gate.io’s financial management, I have my shares in periodic investment plan ,Lock -up &Earn and lending out . In my understanding, those are break-even financing. The key point here is that all stable currency + BTC financing can guarantee the return of 100% principle . These are suitable for investors preferring lower risks. Also note that anyone with no confidence in the future price trend is not suitable for any kind of financial management. Because the possible gains from selling out coins cannot offset the decline in prices. We have also studied the financial management functions of most exchanges. Gate.io should be the exchange with the most abundant financial management types.
Host: With so much being said, which type of financial management is the most suitable for investors to obtain a stable return?
Tina: newcomers can choose periodical investment plan. Fiat financing doesn’t even need users to hold virtual currency, which can be used as a small trial for beginners.
Cici wu: Invest with a certain amount of money every month whether the market goes up or down, and then take the year as the unit.
Xiao Baoxu: All types of stable currency and the coins that you have confidence in their future price.
Host: to these finance management means, which do you think is more suitable for the preparation before bull market?
Tina: when bull markets come, they often catch people off guard. In addition to having USDT ready, you should also hold some mainstream currency, such as BTC ETH.
Loujiyue: first of all, we need to establish a bull mindset in the bullish time, aiming for the long run, otherwise you will lose the opportunity . Bear market is more suitable to do short term trading, whereas bull market to play short is just unwise. We should be patient in holding assets and stop being anxious all the time just for the tiny price drop. Tactically, the bull market cycle is not necessarily very long, so it is crucial to do a good job at position management and gradually increase the positions as you see fit. Last but not least, stay cautious and avoid all the hypes that can foster irrational selling out and buying。Clear your mind and stay cool， that is the beat you should keep up with.
Cici wu: it is self-evident that the bull market can earn money, so it’s better to do periodic investment with mainstream currency (BTC). Before the arrival of bullish market, take 10% of your monthly income to do periodic investment. Those with ample funds can invest weekly.
Xiaobaoxu: make sure that the amount of your BTC does not decrease.
Host:Can everyone in presence share your more impressive experience during bear market?
Tina: I happened to enter the crypto world just before the bull market in 2017. It was a time of unprecedented investor madness. Many projects had been through rapid changes, all of which were experiencing a process of rapid formation of teams and rapid elimination by the market.
Loujiyue: The first major correction took place from May 25 to 27, 2017. In just two days, bitcoin dropped from $2,630 to $2,280 and its market value in circulation dropped from $44.6 billion to $32.9 billion. No one wants to sell out. I was nervous at the first big callback. I wanted to keep selling out. Fortunately, only 800 bitcoins of mine were sold. Soon after, bitcoin price started going up, firstly it got out of control, then it went crazy. Bitcoin peaked at $19,299 in December 2017. “It’s true that every day you wake up with a lot more or less money . Before reaching its peak, the price of bitcoin fluctuated repeatedly, and then began to plummet repeatedly after the Spring Festival. My nerves were stretched . When you stand low and look up, you will always see someone taller than you. You have to understand the biggest enemy is your own fear.
Cici wu: What impressed me most was during the fourth quarter of 2017, and the rebound within the ten days before the May Day holiday in 2018. During the rebound, I dropped my EOS; After that, I shorted all of my position for about half a year.
Xiaobaoxu: I started the crypto world around October 2016. The most impressive thing is that the collapse of BTC really hit everyone’s confidence after September ,4, 2017 .
Host: in bear market phase, what is the most important thing that you want our users to be aware of?
Tina: Learn and think before you invest. Make sure that the risks you are going to undertake is acceptable.
Lou Jiyue: Stay away from margin trading.Hold your coins and wait for the price to soar.
Cici wu: In a bear market, I recommend BTC.
Xiao Baoxu: Rest and study, hold BTC , little or no trading.
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