## Recession
Recession is a period of economic decline in which economic activity slows, as measured by Gross Domestic Product (GDP). It is often accompanied by decreased consumer spending, increased unemployment and falling asset prices. During a recession, businesses may lay off workers or close completely; governments may cut back on services and increase taxes to balance budgets.
It’s important to note that recessions are not necessarily caused by any one event or factor; rather, they tend to be preceded by periods of slow growth or stagnation in the economy. In addition to changes in GDP levels and other economic indicators, recessions can also be identified through an analysis of certain financial markets such as stocks and bonds. Generally speaking, stock prices fall during a recession due to fears of reduced corporate earnings and weakened consumer confidence. Similarly, bond yields typically decrease as investors seek out safe investments with lower risk profiles during times of uncertainty.
In terms of cryptocurrency investing specifically, it’s important for investors remember the golden rule: buy low and sell high! When the market goes into freefall mode like it did during the Great Recession 2008-2009 there can be great opportunities for those who recognize them early enough and act swiftly on them – but this requires some knowledge about what drives cryptocurrencies such as Bitcoin in particular situations such as these – something only experienced traders should attempt without proper guidance from professionals.
While no one wants their portfolio exposed to extreme volatility associated with recessions – understanding how past events have affected cryptocurrency values could help you make more informed decisions when it comes time for buying/selling digital currencies within your own portfolio strategy going forward.
