Thoughts on Cryptocurrency Investment Strategies under Geopolitical Risks

Recently, the situation in the Middle East has continued to be tense, with Israel's military preparations against Iran's nuclear program significantly increasing the likelihood of regional conflict. Once war breaks out, the global financial markets will inevitably suffer severe shocks, economic uncertainty will rise, and both traditional assets and encryption markets will experience significant volatility. In this environment filled with uncertainties, investors need to develop scientific and reasonable asset allocation and investment strategies to reduce risks and seize opportunities.

From the perspective of capital reserves, geopolitical conflicts often trigger market panic and create liquidity tensions. At this time, holding a certain proportion of cash is crucial. Cash can not only provide emergency support during significant market fluctuations but also allow investors to quickly seize bottom-fishing opportunities when they find high-quality assets undervalued, enhancing the flexibility and initiative of investments.

在加密货币投资方面,面对市场波动应建立分阶段的资金投入机制。 当持仓的加密货币价格跌5%时,可投入总资金的10%进行补仓,这一阶段的下跌可能是市场的短期回调,适当补仓能拉低平均成本; 若价格进一步跌至20%,再次投入10%资金,此时市场恐慌情绪可能加剧,但也意味着资产价格更接近reasonable 区间; 当价格跌达到50%,加大投入力,使用20%的资金补仓,此时的资产大概率已处于深度低估状态,不过也需要警惕项目本身是否存在基本面恶化情况。

When selecting investment targets, priority should be given to cryptocurrencies with good liquidity and high activity. During market downturns, these types of coins have high trading volumes, making it relatively easy to cash out, which better ensures the safety and liquidity of funds. For cryptocurrencies that have long stagnated in price and lack market vitality, unless there is concrete evidence indicating that their fundamentals are about to improve, one should not blindly sell; instead, one can choose to continue holding and wait for a market turnaround. After all, the cryptocurrency market is full of uncertainties. For example, Solana has experienced significant fluctuations, dropping from $250 to $8 and then rising back to $300. This dramatic trend fully illustrates the unpredictability of the market. Until the last moment, no one can assert whether a certain coin still has a chance of recovery.

In addition, capital management is the core aspect of cryptocurrency investment. Investors need to plan their funds reasonably, avoid excessively concentrating investments in a single cryptocurrency, and reduce non-systematic risk through diversification. At the same time, it is essential to have an in-depth understanding of the usage and management rules of cryptocurrency wallets, properly protect private keys, prevent asset theft or loss, and ensure the safety of funds.

Cryptocurrency investment is a journey of gambling with risks. In a complex and ever-changing geopolitical and market environment, only by maintaining rationality, formulating scientific investment strategies, and strictly implementing capital management rules can one steadily progress amid market fluctuations and achieve stable growth of assets. #BTC #ETH