Crypto is becoming increasingly correlated with Forex trends. Here's how to take advantage of the slowdown

The past few months have been relatively difficult for the cryptocurrency industry. After more than a year of mostly bullish moves where investors continued to cash checks and smile at the bank, coin prices all but dropped and the gains were wiped out.

For several reasons, cryptography has now essentially become a minefield. Investors are more afraid than ever to get in, and even some of the best platforms in the market are now vulnerable, if not entirely bankrupt.

The crypto-forex correlation

The recent crypto price movement is also incredibly reminiscent of forex and stock prices over the past few months. Just over two years ago, when the coronavirus pandemic was at its height and everyone was forced to stay indoors, crypto initially served as a haven for most of those investors who are now looking for earnings.

Of course, Bitcoin BTC/USD started rampant trading at a low of $3,600. However, in the months following the shutdowns and the entire pandemic, the crypto market was able to reach a new high, with coins breaking records and becoming more valuable than ever.

On the other hand, the forex and equity markets saw only slight jumps - although they also rose. Investors who bought cryptos during the pandemic made the biggest gains of all, and it became pretty clear that digital assets were indeed the best bet for anyone looking for security.

Compare that to this year, and that belief now seems very wrong. Due to struggling economies and the possibility of widespread recessions, cryptocurrencies - along with other markets - have taken a complete dive.

As for the stock market, several of the high-growth tech stocks that generated gains for investors are now trading. In fact, several highly rated tech companies have seen their shares plummet by more than 50% as they continue to weather the worst of the current economic situation.

Energy stocks are also down, with the ongoing conflict in Ukraine leading to a volatile market that several major energy companies have been unable to navigate properly.

As far as forex is concerned, the Ukrainian conflict has also been a blow to the space. This, along with the fact that several major economies seem to be slowing down and preparing for recessions, has led their currencies to be more volatile than ever.

Making money through the recession

It is the basic principle of any market that downturns are a good time to make money. In crypto, this law is absolutely no different. The best way to navigate today's market is with the long term in mind, because the last thing you want to do is get crushed in your pursuit of quick, short-term profits.

With that in mind, here are a few things to keep in mind:

Check your brokers

When trading, one thing you need to keep in mind is to check that a selected broker is right for you.

This is particularly important as we have seen several brokers blocking client funds and preventing them from withdrawing over the past few weeks. Obviously, you don't want to be kept in that situation while you trade.

Just like you would when entering the forex market, having the perfect crypto broker for you will also play a major role in your success as a crypto trader.

Evaluate value above anything else

Trading in the crypto market right now can be tricky. However, now is also a good time to remember the fundamental truth of the market – cryptocurrencies with value end up doing well in the long run. To be sure, invest in these.

Valuable cryptocurrencies are simply assets that seek to solve a real-world problem. These are coins whose developers are the...