Dark clouds are starting to gather again in the global economy. Although we have not technically entered a recession yet, the first quarter of 2025 has heralded a challenging process in financial markets. Interest rate hikes, inflation pressures, and geopolitical tensions are seriously affecting investor psychology. So, how should one trade in the cryptocurrency market in such an environment? Is it possible to make gains with crypto during a recession? Here are the answers to these questions!
1. Follow Macro Data, Direct Crypto Accordingly
Cryptocurrencies do not move independently during recession periods. On the contrary, macroeconomic data such as interest rate decisions, unemployment rates, and inflation directly affect the crypto market. Especially Bitcoin tends to move in similar directions to stocks. Therefore, it is crucial to review the economic calendar before investing. Developments such as US Federal Reserve (FED) announcements, inflation data, or employment reports can cause sudden drops or spikes in crypto assets. By tracking this data in advance, you can create trading strategies correctly.
2. Trade Crypto with Discipline, Not Emotions
In crisis periods, fear dominates the markets. Emotional trades made in this panic atmosphere can lead to significant losses. Therefore, it is very important to be disciplined when trading during recession periods. Reduce your positions, use stop-loss, and protect your capital. Be careful not to exceed your own defined risk limits. Using only a small portion of your portfolio for trading is key to preserving your capital in the long run. Remember, the investor who survives in a crisis will seize a second opportunity in a bull market.
3. Develop Strategy with Economic News: Planned Moves, Not Instant Reactions
Crisis periods are times of high news-driven volatility. News such as interest rate decisions, inflation data, and growth rates can lead to significant fluctuations in the market. To turn these fluctuations into opportunities, it is necessary to create a strategy before trading. For example, instead of opening a position before important data, it would be healthier to confirm the market direction after the data and then trade. Additionally, avoiding high leverage prevents you from losing due to sudden price movements.
4. Win by Using Technical and Fundamental Analysis Together
While technical analysis is important, investments made solely based on charts can be misleading. Especially during recession periods, strong fundamental projects survive while weak ones disappear. Therefore, you should pay attention not only to price charts but also to fundamental factors such as the team behind a token, its use case, liquidity status, and community size. While technical analysis shows entry and exit points, fundamental analysis indicates whether a project can survive in the long term.
5. How to Build a Recession-Resistant Crypto Portfolio?
Putting all your investments into the same sector or asset during crisis periods can be a big mistake. Instead, diversifying your portfolio is a more correct approach. Strong projects like Bitcoin and Ethereum should form the cornerstones of your portfolio. In addition, stablecoins or tokens with low volatility should also be included. Additionally, you can reduce your risk by using hedging tools. For example, protecting your main portfolio with Bitcoin short positions or options contracts minimizes your losses in possible declines in the market.
6. Trade or Accumulate? Choose the Right Time!
Not every investor needs to follow the same strategy. Do you prefer short-term trading or long-term accumulation? If you cannot constantly follow market movements, it would be more logical to invest in solid projects by making regular purchases (Dollar Cost Averaging). However, if you are an experienced investor and can manage risk well, you can evaluate short-term trading opportunities. Remember, the primary goal during a recession should be "survival." The winners in the next bull market will be those who remain standing during this period!
As a result, when investing in cryptocurrencies during recession periods, not only technical analysis but also economic data, news, and psychological factors should be considered. Act wisely, avoid panic, and gain an advantage in the markets with strategic moves!
PLEASE READ CAREFULLY FOR A $10 GIFT FOR 170 PEOPLE.
Friends who have not yet activated the futures trading section will earn $10 when they activate the futures section by entering my reference code 88623008. The first 170 people will benefit from this reward.
I AM EXPLAINING IN DETAIL.
Brothers who registered on Binance without a referral, please listen carefully;
When you follow my instructions in order, you will earn 10 USDT.
Enter the Futures section from your application,
On the next screen, enter the REFERRAL CODE section and open your account by entering the code 88623008.
Brothers who want to receive the 10 USDT reward by completing this transaction by April 10 can do so. After activating your account, having a trading volume of $30 will be sufficient. However, even if you complete this transaction after April 10, your reward will not come. Therefore, I suggest you do it in 5 seconds.
THE SYSTEM WORKS ON A FIRST-COME, FIRST-SERVED BASIS. THEREFORE, DO NOT BE LATE TO RECEIVE YOUR GIFT. IT IS LIMITED TO 170 PEOPLE.
PLEASE READ CAREFULLY FOR A $3,300 GIFT.
Friends, as publishers, you know that we do everything we can for you here. We communicate the services and opportunities provided to us by our authorities. I have never held back my support for both the cryptocurrency market and you; on the contrary, I strive to provide more support.
Now I will explain how to receive your gift. First, those who have not opened a futures trading account need to activate this account with a short transaction. I will explain how to activate it in a detailed and simple way.
So who can benefit?
Friends who have not yet activated the Futures section can activate it by entering my reference code 88623008 while opening the FUTURES section. It is an easy process. I have shown where it is below.