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In the turbulent crypto assets market, many new investors have not yet experienced the true bear market baptism. Recently, someone asked for advice on holding alts until the next bull run. However, as an experienced investor, I must emphasize: the only safe long-term holding options in a bear market are Bitcoin (BTC) or stablecoins.
Let us revisit a painful lesson from May 2022. At that time, the Crypto Asset ranked fourth by market capitalization, LUNA, plummeted 90% within just two days, ultimately dropping from $120 to zero in less than a week. This catastrophic event not only destroyed LUNA but also triggered shockwaves throughout the entire crypto market, causing most alts to average a decline of over 50% within a week.
Imagine if mainstream coins like SOL or BNB were to face a similar fate, plummeting 90% for two consecutive days. What would the outcome be? This example vividly illustrates the vulnerability of alts under extreme market conditions.
Therefore, we must recognize that in the world of Crypto Assets, apart from Bitcoin, other coins should not be seen as assets that can be held without concern. It is not uncommon for alts to go to zero; in fact, it is quite a common occurrence. During a Bear Market, capital preservation should be the top priority, rather than betting on high-risk small coins.
For investors eager to profit in the next bull run, the safest strategy is to focus on Bitcoin or to hold stablecoins during periods of extreme market instability. Remember, in this highly uncertain market, protecting your assets is more important than chasing short-term high returns. Only assets that withstand the test of the market have the potential to bring you substantial returns in the next bull run.