If you are following the news recently then you would have noticed that most of the market analysts are hinting towards a economic recession that might be hitting us soon.
Last recession was driven by sub-prime Crisis in US and spread all over the world. It started around 2007 and lasted well into 2010.
The next recession is expected to start in Europe and then spread across the world. It will be centered around the banks and many large European banks like Deutsche Bank have already started faltering. It is supposed to start during 2020-2021 and expected to run at least 2-3 years.
Most of us view recession as a very negative depressing period which impacts earnings, jobs, profits, assets i.e. all aspects of our financial life. However recession is a part of life and it can not be avoided. Everything which goes up comes down and just like economic boom the recessions are part of normal cycles.
Riskier assets get hit more by recession as people people seek stability and start transferring their wealth from high risk assets to cash. Most people think it is best to hold onto cash during recession and wait for economy to recover before investing in assets. I feel crypto will be hit badly during recession as majority of people find crypto risky and anyone who does not believe in long term value of crypto will start selling it. This will prove to be very counter-intuitive.
If we are well prepared the recession period can be of great advantage as well. I plan to follow these principles to make the maximum out of coming recession:
-Start Saving More: This is most basic. Simple on paper yet the most difficult to implement in real life. Recession would bring with it severe cash crunch so make sure you start saving now by eliminating all urgent expenses. If you are planning to buy the iPhone 11, I strongly advise to put that plan on hold and keep the money in recession savings. This money will come really handy to buy the cheap crypto.
-Research Assets Now: Don't wait for the recession to hit to decide where to put your money. Start researching right now about which are the most worth assets which deserve your hard earned money. I am reviewing now which Crypto are the strongest and will be able to tkae the beating of recession and survive. Most crypto will not survive after the recession. So detailed research is very important now. I plan to invest 50% of my savings in Bitcoin during the recession.
-Control your Emotions: FUD (fear, uncertainty and doubt) have wrecked many portfolios. You will hear many stories during the recession that how Bitcoin is going to die, how Ethereum won't survive the recession. This period will be a test of your faith in Crypto. If you manage to overcome your fear of the falling markets and hold onto to your crypto, trust me you will be rewarded heavily after the recession. Fortune favors the Brave!! (yeah, that reminds me remeber to buy some BAT also)
Thanks for reading, and all the best for the coming recession..
Posted by on Uptrennd- https://www.uptrennd.com/post-detail/are-you-ready-for-next-recession~MTc3MzYw
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