Preparation Beats Surprise
We are still very much in the current bear market, regardless of what many believe. Trading within the $22K zone is by no means bullish. Once we are trading within the $26K zone and experiencing weekly closes above the $25K zone, we can begin to be bullish. However, that could also well be a fakeout, similar to 2019 and other cycles.
There is only one way to ride out a bear market, and that is to be prepared. Bear markets are designed to exhaust market participants. Designed to wear you out, and when you are at your very last, snuff you out. This is a long and tedious process that leaves many so despondent that they eventually just give up. Preparation, on the other hand, changes everything.
I have heard a lot of talk about “missing out” on this recent pump. However, this doesn’t apply to those who prepared for this season. Once again, this preparation is not understood because it is contrary to human greed and fear. When I began preparing for the bear market of 2022, I executed a strategy that many would have considered crazy.
Ironically, in hindsight, many might now deem it wise. I shifted into stablecoins in May of 2021 when Bitcoin was trading at approximately $65K. This was roughly half of my portfolio. I proceeded to move out of more positions as I saw further indications of a more severe collapse. I was still reasonably bullish. However, I was ensuring that I was “equipped” for a bear market.
So what does this mean? Those jumping on every pump trying to recover gains are unable to discern a very basic wisdom. In my particular case, I only miss out when BTC surpasses $65K. It is important to note that the current gains are unable to recover what has been lost by those hodling throughout the bear market. It all comes down to a rather foolish scenario of “penny-wise and pound-foolish”.
Being impressed by a 50% gain when your holdings are still down 80% to 90%, in the case of alts, is not really something to be proud of, and yet… what do we see? Begin to think logically and mathematically, and you will note that those rejoicing are in essence celebrating a loss. On the other hand, those who prepared ahead of time are already victorious. They don’t need the price to pump because their value was captured during the peak.
This is how you ride the Crypto wave! Take note: The well-known Twitter personalities promoting the hodl strategy all appear to be compromised. Their positions and models within the market are reliant upon others’ hodling. On the other hand, there are others whose portfolios are currently in a position of profit, and we are still at the base of the bear market.
Final Thoughts
Preparation is of vital importance, and one needs to begin planning and structuring a strategy that will see them being successful, regardless of market “surprises”. There are obviously coins and tokens that are beneficial to hodl during a bear market. HIVE, for example, continues to provide influence and weight on the Hive blockchain. Along with that is the ability to generate residual income. However, for the majority of altcoins, the “stablecoin shift” is the most powerful move to make.
On that note, considering that HBD can generate 20% per year, it’s definitely a stablecoin to consider, and many are beginning to structure plans that incorporate HBD. Remember, we want to see our portfolios perform better with each new cycle. How will we achieve this? By being hard on ourselves, so that the market doesn’t have to. A strict, structured, and disciplined approach does wonders.
Let’s ensure that this new cycle is filled with stories of victory and not tales of despair. Catch you in the next one!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
