It could also be troublesome to have a look at your cryptocurrency portfolio today — or troublesome to think about investing. That is as a result of a few of the hottest gamers have seen their values tumble. The cryptocurrency market as a complete fell 74% to a low in June after peaking at $three trillion late final 12 months.

The state of affairs could also be starting to brighten, nonetheless. The cryptocurrency market rebounded this week, sending its worth over the $1 trillion mark. The world’s greatest gamers, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), are displaying indicators of restoration. They’ve climbed 14% and 44%, respectively, over the previous month.

Nonetheless, it is too early to say whether or not this crypto winter is over. However this is the excellent news: There is a secret to successful within the crypto market, even when costs are tumbling.

At the very least 5 years

The key has two elements. First, it is vital to take a long-term view of your cryptocurrency investments. This implies holding onto an asset for at the least 5 years. And second, now could be the time to choose up bargains.

Let’s discuss in regards to the thought of long run. It is much more thrilling and fewer aggravating to see your funding rise shortly, which occurred final 12 months. It is easy to get used to the concept of investing — after which instantly locking in a acquire.

However historical past tells us these intervals of huge wins are adopted by downturns. Historical past additionally tells us these low factors do not final ceaselessly. The next chart illustrates each factors.

Ethereum Worth information by YCharts.

Even when your portfolio seems to be dismal proper now, do not despair. The present downturn would not change the funding case for robust gamers. For instance, Ethereum is a frontrunner in decentralized purposes (dApps). The platform hosts greater than 2,900, in line with State of the dApps.

Why is that this vital? As a result of dApps — together with decentralized finance purposes — can change the best way enterprise is finished. Borrowing and lending can occur immediately and with out middlemen. And that is only one use case.

A part of a journey

All of which means even when the worth of your funding has declined, the funding story is not over. That is a part of a journey, and also you’re in the course of it. The top nonetheless may very well be very brilliant.

It is key, nonetheless, to place apart any emotions of panic and as a substitute give attention to alternatives. And the chance at this time is cut price costs on many promising cryptocurrencies.

This leads me to the second a part of the key to cryptocurrency success. As an alternative of ready till cryptocurrencies rebound and attain highs, now could be the time to establish potential future winners — and make investments.

For instance, Cardano (CRYPTO: ADA) has misplaced greater than 60% this 12 months and is buying and selling for lower than $1. Proper now, software program engineers are engaged on a scaling resolution that would supercharge Cardano’s transaction pace. Success right here might ship the worth of this cryptocurrency hovering.

This doesn’t suggest you must exit and snap up any cryptocurrency that is suffered over the previous few months. It is key to check its present position available in the market — and future prospects. It is also essential to maintain this in thoughts: Cryptocurrency stays a dangerous space. It is new, and we will not be 100% certain that it’s going to play a significant position in tomorrow’s economic system. So by no means make investments greater than what you possibly can afford to lose.

If you happen to can settle for this threat, although, cryptocurrency stays an thrilling space with lots of promise. And in case you take a long-term view and cut price hunt at this time, you simply might set your self up for an enormous win down the street.

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Adria Cimino has positions in Ethereum. The Motley Idiot has positions in and recommends Bitcoin and Ethereum. The Motley Idiot has a disclosure coverage.

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.