What to do in crypto bear market in 2022 ?
Actually Bear and Bull are just the market cycles and actually some of the investor enjoy the bear market because these bear market will generate some handsome profit for them in upcoming bull market and it is possible that bear market time frame can stretch for longer duration but bull market always resume.
If you are already in the midst of the crypto bear market and just wondering what to do, then these are the following tips that you might find worth trying.
1. Read and understand more.
When the market is rising you will find lot of "noise" for investing in project "X" or "Y" and everything keep rising in the bull market that really make anyone confused.
But in the bear market, noise is faded out and it is time to learn the basic of Crypto currency, utility of a coin/token , dive into the fundamentals.
This understanding actually is going to keep you invested and picking up the winners
2. Buy the dip but do not consider it as firesale.
Everyone will tell you to "Buy the Dip" but in reality no one can actually predict the lowest point in the dip.
So at any circumstance do not get yourself overburdened like taking debt, mortgaging your house considering it as ultimate discount and making assumption that market cannot go below this point. Market can still surprise you and extended "bear" market is going to backfire in this case.
3. Buy for Long term/invest in proven fundamentals.
Always go for the fundamentals and utility of the particular crypto instead of just going to buy any random crypto coin. I will not say that strictly keep away yourself from meme/trending coin but restrict our exposure not more than 5% of your overall portfolio as these can be hit or miss and just wonder what will happen when your 100% portfolio literally goes to 0.
4. Sell or not to sell?
You will get the advice that "Do not panic sell" and it is fine but still you need to take decision that you should get rid of "shitcoins" now to re invest in the winner or keep them for the next bull run. It is highly unlikely that these "shitcoins" might be able to gain value in bull run and selling them and putting them in winner can be good decision and "sell or not to sell" is really a difficult question that might haunt you in bull market too.
5. Averaging , not "all in" a single day.
Even if the market in the dip but do not jump "all in" in a single day, Keep investing and keep observing the market for few days before investing again.
If it go more down, you will get more dip to buy and if it go up then you already have some profit. I think this is win win in both case.
6. Stable coin APR will keep you moving / POS Rewards / Defi rewards.
It does not mean that we do not have any option to earn in bear market, earning is still possible by getting interest in stable coin, Pos rewards for the coin and invest in the Defi for the stable coin pair.
7. Have a positive attitude.
Take care of yourself and do not stress by checking price after every few minutes. Keeping little distance from market, relaxing with family and using your gained knowledge for investing in good coins will going to help you in bull cycle so do not think too much on the dips and down and wait patiently for good time to come.
8. Be prepared for next bull run.
When you already faced the bear cycle and survived then a bull cycle will be certainly a breezer and time to rejoice but at this cycle do not forget to book profits and invest in assets that can give you income irrespective of the market volatility so that you are prepared and ready to take benefit of the next bear cycle.
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