Wolf of Wall Street Gives His Advice on Surviving Crashing Markets

The cryptocurrency market is experiencing one of the worst crashes in history. The collapse of the FTX cryptocurrency exchange last week has only worsened the situation. With many investors suffering losses, the “Wolf of Wall Street,” Jordan Belfort, has previously shared advice on surviving the crashing markets.

Focus on the long term

According to Belfort, Bitcoin is a long-term store of value, and it could generate notable returns in around three years. He also noted that Bitcoin has robust fundamentals, which increased its probability of increasing in value.

His approach involves taking a “three, four, or five-year horizon.” By hodling BTC long-term, Belfort believes that an investor will yield returns. He also addressed the limited supply of Bitcoin, adding that as more people start buying the coin, its price is bound to increase.

Invest in Bitcoin and Ethereum

The cryptocurrency market is large. There are more than 10,000 coins in the market, and as investors attempt to diversify their portfolio, there is always a risk that they may be rug pulled after developers take the money and stop working on the project.

Belfort notes that investors should only buy Bitcoin and Ethereum because these two assets have robust fundamentals. In the case of Bitcoin, its limited supply and growing adoption are two reasons that could trigger a notable rally in the long term.

He also adds that Bitcoin is no longer seen as a scam and will survive the bear market. The same applies to Ethereum, as it was the first cryptocurrency that developed multiple use cases in the decentralized finance (DeFi) sector. By investing in Ethereum, Belfort believes that the coin could enter a bull run during the next bull market.

The analyst has also warned investors against investing beyond these two assets. He notes that most cryptocurrencies are yet to prove their strength but added that some of the assets would survive.

Do not panic sell

Belfort has also advised investors to refrain from succumbing to the pressure of the price downturn and selling out of panic. According to him, the price correction will push out weak assets from the market, adding that money is made when the market is down and invested needed to identify the right time to jump back in again.

He added that historically, most money was made when the entire market was gripped in fear. In 2021, the cryptocurrency market rallied above $50k in April before plunging a month after China banned crypto. However, the market trend reversed shortly after, and BTC reached an all-time high of $69k in November.

Therefore, it is not plausible for investors to sell during periods of panic selling or buying during periods of high demand. Sticking to your investment strategy and failing to react to the broader market sentiment can protect investor funds.

After a massive drop over the weekend, cryptocurrencies are showing signs of recovery after Binance announced plans to create a recovery fund that will affect crypto firms facing a liquidity crisis and possibly prevent another FTX-like situation.

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