HOW TO SURVIVE A BEAR MARKET

Discussion • 2021/06/02 • tarafından
hazelnkwocha

Aside from statistics and historical facts, no one knows how long a bear market or a bear trend in a bull market can last. It may go on for weeks or months. Just because the market is bearish does not mean that you have to lose money constantly; there are several ways you can keep your head above water in a bear market or a bearish trend.

Firstly, you have to stop gambling on meme coins and Ponzi schemes and pay attention to the good quality coins; back in 2017, many coins fell by -99.9% and never recovered, but the strong coins went on to make new all-time highs because they were quality coins with strong bullish fundamentals.

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The meme coins pump is a season, but that season is short-lived; if you want to make money in the crypto market, you have to focus on quality coins with good teams, networks, and tokenomics; that will give you long term gain.

Secondly, to survive in a bearish cryptocurrency market, you have to think long-term. Massive corrections in the crypto market have happened too many times to count, and the market is still standing and existing; it is not going anywhere. Volatility is a major feature of the crypto market. It always happens, so if you are already getting shaken out with short-term volatility, the cryptocurrency market is probably not for you. If you can handle the volatility, understand the asset class and the disruption potential of the asset class, then cryptocurrency is right for you.

It is only people who think short-term that get shaken out anytime there is a market correction; if you think long term, you know how much you stand to gain in the long run and how you can make a market dip to your advantage.

Thirdly, you have to build positions over time in surviving a bear market and not go in on the first dip. Anytime there is a market correction of about ten to twenty percent, it is advisable to add a bit to enhance your position and not go all in.

For instance, if a cryptocurrency investor went all in at the first Bitcoin dip in this current bear trend, they would have purchased Bitcoin at the rate of fifty-one thousand dollars, not knowing that Bitcoin would dip by nearly fifty percent up to thirty thousand dollars.

You have to build into positions, buy a bit at the first dip; if the market dips again, you buy some more. It is better that way instead of going all-in to have cash left if there may be further dips.

Finally, to survive in a bear market, you have to make your assets work for you by venturing into things like Yield Farming and Lending. When you do this, you earn passive income, so you are not drastically affected if the market dips.
Just because the market is bearish does not mean you have to lose all your money or sell all your coins; you can use the market corrections to your advantage.

Yorumlar (2)
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atikarani14
5 yıl önce
good information
godgrace1
5 yıl önce
really
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