Most people people think that people become rich by making the right decisions during the bull market. Getting into the right coins, having perfect timing, making the perfect trade and the list goes on. But, people who have been into crypto for a while, and investing in general, will always tell you that it is the work that you're putting in, and the decisions that you're making during the bear cycle that actually determine your success during the eventual next bull run.
Bitcoiners will often say that bear markets are the time to get back to the fundamentals or basics, that first got you interested in the space. What they mean by that, is often people go full Degen during bull cycles. Profits start coming, and they come in larger quantities than many of us could have ever imagined, and that affects each one of us differently. We get carried away, and become greedy.
And so it is a time to get back to the basics. The time to put the research into coins that you're interested in; separating the great projects, from those that aren't so great. While many people assume that each coin will recover during the next bull market. The truth is that a large majority of them will never recover. If you look back to the previous bull market in 2017/18, there are countless amounts of coins that would never even reach its previous all-time high price, and many that never got anywhere close. Put in the research now to find projects that you can really get behind. It makes it much easier to HODL during times of market chaos.
So now that you have put in the work and begun investing in coins that have a real purpose, now it is time to start working on yourself. For each person this could mean a variety of different things. If you are new to crypto, this is a great time to learn the basic terminology and basics around coins in the space. During the bull cycle these types of things are often overlooked, where our mindsets are completely focused about prices. This could mean that you finally learn how to take self-custody of your crypto. It could mean that you finally devote the time to read the white papers of Bitcoin, Ethereum and other up and coming projects. Whatever it is, this is a time to level up your skills.
If you are anything like me, then you are probably very interested in building passive income streams with your crypto. The bear market is the best time to make that happen. While I would be careful, especially with the recent market situation, but by lending out your crypto and staking; it is a great opportunity to start building these income avenues. The great thing is that during the bear market, your earnings will feel quite minimal due to the dollar price of coins being so deflated. But as the bull market swings around, and prices do a 10x or even much more. That is when your decent sized passive income stream will evolve into something much more substantial. As mentioned above. Before you make any decision, put in the research. You want to put in just as much energy into protecting your assets, that it took to earn the income to purchase them.
Everybody's favorite and least favorite thing about the bear market is that prices of crypto are so low. It can be painful to watch the value of your portfolio dip so low. But, at the same time, this is the greatest time to accumulate and build your portfolio. If you have conviction while everyone else is to afraid to invest, and are able to heavily accumulate. This could be a life-changing season for you. While I am personally heavily accumulating at the moment, it is important to never invest more than you are willing to lose. If you are heavily stressed out about the price of Bitcoin or Ethereum dropping, then it is likely that you have invested too much.
If you are tight on cash, but still want to accumulate, this is a great time to get a side hustle job to earn more income to be able to invest. Or potentially build your own income stream by writing about crypto, or even making a YouTube channel. The options and opportunities are endless. Those who grind hard now, will most likely be rewarded in the future.
Bear markets will test you mentally more than you could have ever imagined. Each day waking up to a lower price, watching the value of your portfolio dropping further and further. It can be a depressing place. If you feel that you are getting burned out, or just can't take the stress anymore. It is okay to take a step back and take a break from the space. Delete the price apps on your phone. Unfollow the crypto twitter and YouTube accounts. Go outside during the summer and get some fresh air. Then come back when you are ready. Anything is better than being so stressed that you end up selling too early. When if you would have just held on a few more years, it could have been life changing. There is no shame in taking a break if that is what you need. Then come back when you're ready, and use all of that extra energy to go even harder.
As for me, I view this time period as a fantastic opportunity that I don't plan on missing. I will continue to accumulate as much as I possibly can, and also continue to build my passive income streams. I'm also wanting to put a large focus on building my other income avenues such as my crypto writing, and perhaps land a job in the crypto market.
How about you? How are you viewing this bear market? And what are you doing to set yourself up for future success?
As always, thank you for reading!