How to invest in the cryptocurrency falling market, tips and tricks from venture capital

  • Haseeb Qureshi is the Managing Partner of the DragonFly Capital crypto fund.
  • He and other crypto-capitalists are explaining how investors can make the most of the current downturn.
  • According to Messari, the cryptocurrency market capitalization is $1.23 trillion.

The number of global crypto users grew 178% to nearly 300 million people last year, according to a report from

Adoption cues have, in part, played a role in this trend. Morgan Stanley Introducing Wealthy Clients Bitcoin exposure, El Salvador announced that The largest cryptocurrency by market cap is legal tenderThe rise of non-fungible tokens (NFTs) and new use cases for blockchain integrations such as gaming has led to an influx of new investors.

But market sentiment has turned bearish this year, in part due to the collapse of LUNA and UST. Also, amid the Federal Reserve raising interest rates to ease inflation, Bitcoin and Ethereum are trading similarly to risky technology stocks.

Bitcoin has not been bailed out despite its supporters triumphing over the token as a safe haven from macro effects and as an inflation hedge. Bitcoin and Ethereum are down 30.37% and 37.54% in the last month, per Tracks. Altcoins solana stock and avalanche are down 81.17% and 80.75% from all-time highs. Cryptocurrency markets have lost $600 billion over the past month, According to CoinMarketCap.

Investors who have jumped into cryptocurrencies over the past couple of years may not be accustomed to its sometimes choppy performance. This is nothing new for longtime industry participants. In 2020, Bitcoin dropped 50% of its value to $4,000 in two days amid fears of a pandemic. But after 13 months, it’s up to $64,000.

“It’s what you would expect in coding,” Garrett David, co-founder of Atomic Form, a Web 3 startup, He previously said from the inside. “Sometimes it hits 100x, sometimes it crashes.”

However, executives expect that user adoption will only continue. Over the next decade, more than a billion people will or will use cryptocurrency, Coinbase CEO Brian Armstrong She said.

“I think in 10 to 20 years we will see a significant portion of GDP happening in the crypto economy,” Armstrong said, comparing market growth to the early days of the internet.

VCs say price action does not determine long-term potential

Price action does not necessarily reflect the long-term growth of the space, according to three crypto capitalists. So what should a less experienced investor do in a file

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? Venture capital from investment firms Dragonfly Capital, Volt Capital and Archetype shared their insights on the matter.

Users should take the time to read the white papers, according to Dragonfly Capital’s managing partner, Haseeb Qureshi. For the unit, the white paper is a document issued by the developers detailing the purpose and technology behind its offerings. One of the most cited ethereum, which was published in 2014 by co-founder Vitalik Buterin.

“The great thing about bear markets is that you can sleep at night,” Qureshi said during a session at the Permissionless conference on Tuesday. “It’s not crazy and you don’t get it as much as dread. You can actually read the documents and the white papers.”

Dragonfly recently closed its third $650 million crypto fund, TechCrunch mentioned. Limited fund partners include Sequoia China, Tiger Global, KKR, Invesco, and others.

Sona Ahmaz, general partner at Volt Capital, recommends users to build their reputation and learn more about the space when the markets are in shambles.

“You will get a front row seat to see what really works versus what doesn’t,” Ahmaz said at the conference.

Last year, Volt announce A $10 million fund for early-stage crypto startups that has played a stake in blockchain research firm Nansen.

Ash Egan, founder of Archetype, told Insider that new investors should do more research and immerse themselves more in cryptocurrencies during a bear market. In April, the company announced plans to close a $150 million fund.

“I think there are a lot of tourists throwing capital out there,” Egan said. “It takes many years to build something impactful, so I think you have to be there 24/7.” “And I think you just have to dig a few layers deeper.”

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