With the expansion of the crypto market, bulls and bears emerged as popular catchphrases and most investors tend to set their strategies on it. Indeed, it requires considerable expertise and market understanding to ensure whether to invest in or out of crypto assets during a specific market situation.
Understanding the Market
A bullish market is one where the prices of crypto assets are consistently rising. It is similar to bull horns, where investors are constantly lifted towards a price hike.
On the other hand, a bearish market is one where the prices of crypto assets are consistently low, thereby pushing investors down the ladder. In layman’s understanding, a bull market is profitable, and a bear market isn’t.
Finding Bulls and Bears in the market
The crypto market is highly dynamic, and following the records, it is evident that a long bull market suddenly faces a bearish trend. Thus, crypto asset prices rise consistently for a while and then drop suddenly.
However, one must remember such periods are consistent and do not last a day or less. Several events like an economic recession, pandemics, wars and other untoward situations can cause bullish trends in the market.
For instance, the bearish market during the pandemic outbreak survived for a month and recovered with a bullish trend. Again, there are cases like Nixon’s economic crisis that lasted for over a year.
Overall, one can assess the bears or bulls in the market by assessing the leading global economies. While, on the one hand, that is true, it is impossible to decide the future of the market through them.
How To Survive in a Bear Market?
Investors often break their heads over a bearish market and are energized during the bulls. However, though the recent bearish market is a concern, changing the investment strategy can rescue the investors.
Financial experts and veteran crypto investors claim the benefits of buying assets during a bearish trend instead of selling them under panic.
One must remember bear markets can offer crypto assets at a lower price. Hence, there is no better time to buy them. And this is one of the popular mistakes most investors make. It is always better to buy crypto assets during the bearish market and sell it in bulls.
Furthermore, investing in multiple crypto assets can also reduce the losses in the bulls market. Hence, surviving bears is not as challenging as it looks if you have the right investment strategy.