There have been many debates on what are the best investing strategies in crypto, particularly considering we are now in a bear market and people are more skeptical than ever about how sustainable and profitable their crypto investments may be.
However, despite all the criticism, the current high inflation in Italy and a surge in consumer prices have led people to consider alternative investment options to traditional assets. Investors are now developing various strategies to minimise risk-taking, including copy trading and investing in alternative coins.
Trading wisely during downturns
Italy’s economic growth was stronger than expected last year, at 3.9 percent, according to official data released on 31st January. However, the Italian economy contracted in the fourth quarter of 2022 and it’s likely that it will enter into a widely anticipated recession this year.
On the crypto side of things, the bear market has been difficult for many investors but at the same time, it worked to push for more regulation in the market and ultimately shift the focus back to the protection of the investor.
The post-pandemic economic recovery policies that have been adopted by governments and central banks around the world – virtually zero rates and heavy purchases of government bonds – have also led to a surge in consumer prices. Alongside the steep rise in the cost of energy – natural gas and oil prices have been rising sharply for some time – inflation has been exerting a lot of pressure.
Against this backdrop, cryptocurrencies – particularly altcoins – are once again emerging as a potential hedge against inflation. In addition to the two main tokens, BTC and ETH, there are a host of other options for people to consider as they seek to become involved in this market.
Cheaper time to invest
2022 was a difficult year for cryptocurrencies. Bitcoin and Ethereum have fallen about 70 percent from their peaks, while other coins like Cardano’s ADA and Solana’s SOL have plummeted by about 90 percent.
While many projects are in recovery mode, this also means that it is one of the cheapest times to invest in cryptocurrencies by comparison to the highs of recent years. Downturns like this are not necessarily rare in this sector, and major cryptocurrencies have faced worse situations in the past. This creates the possibility for a strong recovery for certain projects and an upswing in their respective coin value.
Increasing institutional interest in crypto
The crypto market is constantly evolving and it is very important to try to stay updated. Despite the general uncertainty, particularly over the past few months, we still have observed more and more big companies – in Italy and further afield – getting involved in this market and investing in blockchain development, cryptocurrencies and NFTs.
Examples of companies entering the crypto market include Fortune 500 companies such as Starbucks, which is now offering members the ability to earn and buy digital collectible stamps (NFTs) that will unlock access to new, immersive coffee experiences.
Banks and fintech companies are also jumping on the trend, with the likes of Revolut now offering crypto staking to customers in the U.K. and European Economic Area (EEA) starting in February 2023.
Closer to home, luxury Italian companies also haven’t shied away from entering the NFT landscape and launching engaging campaigns to involve their audiences. Lamborghini is one of the many brands which has joined the space, and since September 2022 it has started to release four new Lamborghini NFTs each month.
Gucci also launched the Superplastic x Gucci collection, including a dimension in which the Superplastic characters Janky and Guggimon visit Gucci Vault, a concept store designed by Gucci’s Creative Director Alessandro Michel.
Continuing institutional interest in the space bodes well for the long-term health of the industry and the applicability of blockchain-based projects for real-world use cases.
Discovering new means of investment with Bitget
To help navigate the often choppy waters of crypto trading, we are seeing the growing popularity of new and innovative investment strategies – often backed by technology or data advancements. One such strategy increasingly deployed by newer or more inexperienced traders is simple – observe and copy the actions of others.
Copy trading enables you to follow the investment strategy of experienced traders. With such services, people can select traders with outstanding performance based on overall ranking and P&L, as well as set up parameters for risk management, leverage, margin, and more.
This is a useful means of leveraging the experience of others to pursue a safer altcoin trading strategy for new investors.
The crypto market is emerging as an increasingly attractive avenue for Italian investors as the country faces a potential recessionary period. As well as the top two coins, altcoins may come to the fore for investors seeking to benefit from crypto’s expected recovery.
For less experienced traders, copy-trading can be an effective tool to take advantage of this unique moment in time.
