Top 5 Strategies to bear this Crypto BEAR Market
With the crypto Bear market well upon us, many of us are wondering how to come unscathed in the face of extreme fear and uncertainty.
Do we invest or not invest in a bear market? Can we recover the loss we have incurred so far in the crypto market?
The cryptocurrency market is well in the middle of a bear market and appears to have no endpoint. At the same time, the traders and investors are divided about everything, from the type of digital assets to the future trends. There are selling pressures, with bitcoin slowly sliding into what looks like a severe case of ‘death cross.’ At the same time, there is advice to pick the losses and run for safety.
With Luna and Terra plunging, the stability of stablecoin has also become a considerable debate for users. Even blaming the market situation for inflation is not winning many hearts in the crypto market, where things looked quite promising a year before. The big question that investors are contemplating is whether to sell HODL or wait and watch.
And, when you are watching for some signs, here are some things that can help take the mind off the plunging price graphs or the fluctuations.
Strategies to Survive the Crypto Bear cycle:
While it’s difficult to predict the future, we can find some ways to mitigate the loss and play safe. Below are five things to keep in mind in this crypto bear cycle.
Diversify your Portfolio:
Yes, buying can also be an option in this bear market if you know where to invest. Putting all eggs in one basket is not something you need to do now. Diversify your portfolio, and invest in multiple currencies, so you do not end up like the exclusive Luna users. One needs to understand here that cryptocurrencies are not synonymous with Bitcoins! There is more to digital assets, and it’s time to explore.
Leverage your investments:
Remember that things can go wrong if you feel the prices are too low and you can purchase more. So, do not put all your efforts and money into buying cryptocurrencies. Keep aside some for the next phase, and invest slowly. Also called DCA or ‘Dollar-Cost Averaging,’ leveraging is an effective strategy in the bear market wherein you do not plunge all your reserves at a time but wait and watch to invest.
Short-sell assets:
If you are a seasoned player in the cryptocurrency market, you can always try short selling or shorting digital currencies. It is done to either increase the portfolio or make a quick profit. However, there are high risks associated with the strategy.
Here is an example. You sell ten coins of a cryptocurrency, say, ‘XYZ’ at a specific price, in the anticipation that the price will go down. You then repurchase it at a reduced cost but get 20 instead of 10. Also, between the selling and buying price, you make a profit.
So, even in a bear market, short-selling can help make some profits if you are a seasoned player. However, considerable risks are involved, and thorough research before employing shorting to your portfolio.
Think long-term:
Do not panic when the prices fluctuate and do not immediately rush to sell or buy. Look for staking options and cryptos as long-term investments. Wait for the bear market to pass before trading into new possibilities. A bear market is not a place for FOMO (Fear of Losing Out).
Research and keep watch:
One thing that helps understand the market is research. A bear market is a time to trade with extreme caution. You can only achieve it by following the trends, the market sentiments, and the assets showing promise for a longer duration.
A very mandatory thing to remember, apart from the above, is not to panic and run for your exchange to sell, buy or trade the assets. It is a time for extreme caution and to play the wait-and-watch game.
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