{"id":2340,"date":"2022-02-01T19:20:36","date_gmt":"2022-02-01T16:20:36","guid":{"rendered":"https:\/\/evercodelab.com\/blog\/?p=2340"},"modified":"2022-07-27T11:00:49","modified_gmt":"2022-07-27T08:00:49","slug":"crypto-winter-implications-for-owners-of-digital-assets-and-evercode-wl-wallet","status":"publish","type":"post","link":"https:\/\/evercodelab.com\/blog\/crypto-winter-implications-for-owners-of-digital-assets-and-evercode-wl-wallet\/","title":{"rendered":"Crypto Winter: Implications for Owners of Digital Assets and Evercode WL Wallet"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Has a long and hard crypto winter arrived? In this context, we do not mean a regular price-swing of limited proportions, but a prolonged downward shift similar to that of 2018-2020? As of now, you can be sure. At the same time, this risk cannot and should not be disregarded. Thus, both companies and ordinary crypto owners must take possible implications into consideration. Being prepared is the basic premise for dealing with the new threats successfully and with minimum losses. So here is what web3 industry experts say!<\/span><\/p>\n<h2><strong>Crypto Winter? Now?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">To begin with, how can we define a \u2018crypto winter?\u2019 Recently, CNBC has defined this elusive concept as a significant period of time when \u2018prices drop without any recovery in sight for over a year.\u2019 So, is what we are observing now this very thing?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In one respect, it looks like this.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Coindesk <\/span><a href=\"https:\/\/www.coindesk.com\/markets\/2022\/01\/24\/crypto-sell-off-wipes-700b-from-industry-market-cap-so-far-in-2022\/\"><span style=\"font-weight: 400;\">mentioned<\/span><\/a><span style=\"font-weight: 400;\"> on Jan 25th that a $700B share of the crypto market capitalization has been literally wiped out since the start of 2022.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It took BTC two days only, on Jan 20-22 to fall from 40K to 35K bucks. As you might guess, such downward trends make no optimists.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">On the other hand, it might not be that bad, still!<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">For instance, Coindesk highlights some mitigating factors able to cool the paranoia a little bit! <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The 2nd layer systems intended to make blockchains more scalable and speedy are already in place. By the way, the <\/span><a href=\"https:\/\/evercodelab.com\/products\/everchain-wallet\"><span style=\"font-weight: 400;\">Evercode White Label Wallet<\/span><\/a><span style=\"font-weight: 400;\"> for crypto supports the most prominent one, <\/span><a href=\"https:\/\/evercodelab.com\/blog\/en\/lightning-network-essence-role-implications-and-evercode-lab\/\"><span style=\"font-weight: 400;\">Lightning Network<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Permissionless web3-based elements are already popular as well, dApps and NFTs are the first things that come to mind.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Corporate and institutional investors have already joined the trend and are likely to stay in the industry.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ongoing regulation of the crypto market may also be a plus. Some governments have managed to find or are trying to find a middle ground between crackdowns.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>Reasons Behind the Cold Winds<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As for the driving forces behind the crypto winter, experts cite an entire range of them. <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The first one sounds like a bad joke. It may seem to be a <\/span><a href=\"https:\/\/www.cnbc.com\/2022\/01\/25\/crypto-winter-investors-fear-bitcoin-has-further-to-drop.html\"><span style=\"font-weight: 400;\">paradox<\/span><\/a><span style=\"font-weight: 400;\">, the recent influx of institutional investors &#8211; one of the most promising developments &#8211; has turned out to be a negative factor. The fact that there is big institutional money in the industry makes crypto dependent on the traditional markets and global stock. If you check out the latest news from that sector you will see that the <\/span><a href=\"https:\/\/www.cnbc.com\/quotes\/.SPX\"><span style=\"font-weight: 400;\">S&amp;P 500<\/span><\/a><span style=\"font-weight: 400;\"> has fallen by 8%, while the <\/span><a href=\"https:\/\/www.cnbc.com\/quotes\/.IXIC\"><span style=\"font-weight: 400;\">Nasdaq<\/span><\/a><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> index has fallen by 12%. There must be a correlation here.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Another factor is the obviously hostile environment created by <\/span><a href=\"https:\/\/www.cnbctv18.com\/cryptocurrency\/crypto-winter-what-does-it-mean-and-could-it-extend-into-an-ice-age-12270232.htm\"><span style=\"font-weight: 400;\">several governments<\/span><\/a><span style=\"font-weight: 400;\">. While the <\/span><a href=\"https:\/\/www.bbc.com\/news\/technology-58678907\"><span style=\"font-weight: 400;\">Chinese crackdown<\/span><\/a><span style=\"font-weight: 400;\"> is not a surprise for anyone, many other nations are following suit. To name a few, there are <\/span><a href=\"https:\/\/www.ft.com\/content\/e5d6513c-f06f-4451-a36b-f0ac622e783d\"><span style=\"font-weight: 400;\">Turkey<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/finance.yahoo.com\/news\/indonesian-central-bank-prohibits-cryptocurrency-061727801.html\"><span style=\"font-weight: 400;\">Indonesia<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.euronews.com\/next\/2022\/01\/11\/bitcoin-ban-these-are-the-countries-where-crypto-is-restricted-or-illegal2\"><span style=\"font-weight: 400;\">Vietnam<\/span><\/a><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">, etc. Even in India where crypto is extremely popular the government is imposing restrictions.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Painful memories and fears associated with 2018. No one forgot it. No one is likely to forget it in the near future. As a result, <\/span><a href=\"https:\/\/fortune.com\/2022\/01\/24\/crypto-winter-bitcoin-price-crash-ice-age-bear-market\/\"><span style=\"font-weight: 400;\">self-fulfilling prophecies<\/span><\/a><span style=\"font-weight: 400;\"> based on that negative experience are a powerful engine for the crypto winter. Nuff said.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<h3><b>What should I do?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">To sum up, the crypto winter is not without its own reasons and might be overexaggerated. You still may ask a question: \u2018Yes, I understand that and I don\u2019t care about the reasons and the future. What should I do now, in this bear market\u2019?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Everyone is to make their decisions on their own. At the same time, there are some possible strategies you might find useful.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">While FOMO (fear-of-missing-out) is a popular strategy now, Coinbase <\/span><a href=\"https:\/\/www.coinbase.com\/learn\/tips-and-tutorials\/how-to-minimize-your-losses-during-a-falling-market\"><span style=\"font-weight: 400;\">reminds<\/span><\/a><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> that, so far, holding your BTC for longer periods of time \u2018has to date been a proven strategy.\u2019 After all, Bitcoin is still one of the most successful assets of the century! In this case, make sure that your wallet is safe and ever-ready to be used, just like Evercode\u2019s White Label Wallet (which is a perfect option to store your digital funds).<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/fortune.com\/2022\/01\/26\/4-ways-how-to-survive-crypto-winter-bear-market-bitcoin\/\"><span style=\"font-weight: 400;\">Fortune<\/span><\/a><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> recommends users explore the opportunities of crypto staking. Again, our White Label crypto solution makes it possible for your company to generate passive incomes as well.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Some diversification of your portfolio, while almost all the available assets are in the red and cost cheaper, is also a <\/span><a href=\"https:\/\/www.thetimes.co.uk\/money-mentor\/article\/crypto-tips-mistakes\/\"><span style=\"font-weight: 400;\">conceivable alternative<\/span><\/a><span style=\"font-weight: 400;\">. Beyond doubt, you are not surprised that our White Label Wallet for digital assets makes it possible for your business to handle up to 300+ coins and tokens and benefit from 50 000+ exchange pairs!<\/span><\/li>\n<\/ul>\n<h3><b>Conclusion<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">How can we sum up this piece? Whether it is a true crypto winter or not, it is quite chilly! So <\/span><a href=\"https:\/\/evercodelab.com\/contacts\/\"><span style=\"font-weight: 400;\">contact us<\/span><\/a><span style=\"font-weight: 400;\"> for a warm talk about your edition of the Evercode White Label Wallet!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Has a long and hard crypto winter arrived? In this context, we do not mean a regular price-swing of limited proportions, but a prolonged downward&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[71],"tags":[85,79],"class_list":["post-2340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-blockchain-en","tag-crypto"],"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crypto Winter: Implications for Owners of Digital Assets and Evercode WL Wallet &#8211; Evercode Lab Blog<\/title>\n<meta name=\"description\" content=\"Blockchain and crypto forecast\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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