A bear market is a term that describes a prolonged fall in the prices of commodities. Typically, a bear market refers to a 20% drop in prices of commodities and securities in the crypto market.
Bear markets are common in the crypto market, but this year, the crypto market is experiencing severe best market consequences.
It is known that the best crypto traders are those who can navigate their way through bear markets. These individuals have strategies that help them survive a bear market.
Although many, there are few effective strategies to help you survive a bear market. Thankfully, in this article, we will discuss the 5 effective strategies that will help you survive a bear market.
Control your Emotions
The first way to survive a bear market is to control your emotions. Experts understand that bear markets are bound to happen. All they do is prepare themselves to survive the market.
For newbies, you’ll be tempted to sell off your coins for fear of losing money. We strongly advise that you should not. Keeping your m. coins during a bear market will not only yield higher profits but will help you learn patience in the crypto market.
A good way to control your emotion in the crypto market is to avoid looking at the portfolio during a bear market. By doing this, you are helping yourself take your mind off the currency happenings in the market.
Read more about bear market here
Do not Target the bottom
While several people may keep their coins in a bear market, some are tempted to buy more coins. People interested in buying more coins often wait for the best time to buy, which can be when it hits the bottom.
The thing about bear markets is that no one knows where the price of a fallen coin will hit the barest minimum. You can trust your gut to buy coins at whatever low levels and be lucky, and you may not be lucky. While you may not want to make profits from the coins you’ll buy, it’s best to buy them when you feel it in your guts.
Try Staking Your Coins
Staking your coins may be your best bet on a bear market. For those who are not familiar with the term, staking means locking up your coins on a PoS(Proof-of-Stake) blockchain and rewards for doing so.
When you stake your coins, you increase the size of your wallet without losing money. Also, you reduce the chances of panic selling when you stake your coins.
Dollar-cost average is arguably the best way of surviving a bear market. Here is how the dollar-cost average works: you invest $100 weekly in buying a coin instead of investing #1000 at a time to buy it. So in three years, you have bought $15,600 coins, which may be tripled when the price of the coin is calculated.
In dollar-cost averaging, you save yourself the worries of losing money suddenly and losing a high amount of money. We must mention that the dollar-cost average is often for long-term trading.
Do Not Lose Faith
Bear markets are bound to happen in the crypto markets. A good crypto trader knows that he must lose money occasionally and then make profits too. All of these are bound to happen. If you want to survive a bear market successfully, keep the hope high; know that the time will pass.
Bear markets are not death threats. Instead, they are an avenue to learn how to sail the storms of the crypto market. For that reason, we have carefully highlighted 4 effective tips to help you survive a bear market.