Yes, we are in the bear market 🐻, and it is not very good for digital currency traders. However, this is also an opportunity for new investors to enter the market at a lower price 🍻. There is a saying that 'a crisis is an opportunity in disguise', and this applies perfectly here. The cryptocurrency market has been witnessing a lot of volatility in recent months. The prices have crashed significantly, and most digital currencies have lost value. Even after multiple dips and recoveries, few coins have performed well enough to remain relevant among investors. In such times, it is important to keep our heads up and maintain long-term focus as this is not going to last forever. If you are someone who likes taking risks and is ready to invest your savings in risky markets, then now might not be the best time for you as it will only get worse from here on. However, if you want to take some calculated risks with your savings while avoiding more volatile markets – now might be the best time for you to invest in the crypto world.
Strategies to survive the bear market
There are a few things that must be kept in mind in the bear market ❤️🩹.
1️⃣ Firstly, you must have a clear and realistic investment goal. While it is important to have a long-term focus, it is essential to have a realistic investment goal in place. This will be helpful in guiding you in times of crisis when the prices are falling.
2️⃣ Secondly, you must have a strong understanding of what you are investing in and why. This will help you stay focused on your investment goal and will also help you make informed decisions when the prices are falling.
3️⃣ Thirdly, and most importantly, you must avoid letting emotions such as fear, greed, or envy affect your investment decisions. This is not the right time to be investing. Investing in a bear market is not a walk in the park. It is challenging and can be especially frustrating if you have come from the bull market. However, with a clear investment goal, a strong understanding of the market, and the ability to avoid letting emotions affect your decisions – you can survive and even thrive in a bear market.
WALK and HODL!
When walking 👣 towards an unknown destination and you find that you are in a dark forest, what do you do? You walk slowly and steadily with a torch in your hand, and you don't run into a dark forest. Similarly, when you are investing in cryptocurrencies, you must walk towards your goal with caution, with a strategy in mind. Don't start running towards your goal with a haphazard approach, as you might end up getting lost in the dark forest. HODL 🤝 is a holy grail 🏆 to help you see through the tunnel!
Watch out for fake news and scam coins
Fake news 📰 is the biggest enemy in the cryptocurrency world. The scammers have always been there, but the problem has become even worse in recent times because of the bear market. The scammers are trying to exploit the situation to mislead investors and steal their money. They create fake news, which is nothing but lies, and spread them through social media platforms such as Facebook, Twitter, etc. You must be careful when reading news about cryptocurrencies. If you don't know the website and the author, then don't trust the news completely. Always verify the news and make sure that it is coming from a reliable source. The same applies to the coins that you are considering investing in. Find out whether the coin is a scam or not.
Diversification: Don't put all eggs in one basket
Besides having a clear investment goal, having a diversified portfolio is another way to survive a bear market. You must diversify your investments to reduce the risk associated with investing in the crypto market. This will also help you in the long-term as the crypto market is not only looking at a bear market but also a bull market. You must keep in mind that the crypto market is volatile, and it will experience multiple ups and downs. You should always try to hedge your bet and avoid putting all your money in one particular coin because you never know when a particular coin might become worthless. Hello Luna 🌕!
The bear market is not a good time to be investing in general, but if you have patience and you follow the above-mentioned points, you can survive this bear market and come out as a winner 🏅.
Of course, I am not your financial advisor 👨💼. I wrote these to remind myself to calm 🧘🏻 during the bear market.