surviving the crypto bear

The market is in the red again, and there are all kinds of reason being thrown around to justify it, including Japan’s move to be stricter on exchanges. However, the truth is that we are in a bear market, and have been, since January. That’s why good news only leads to slight bumps in prices, and the slightest of bad news sends the market tumbling. The sentiment is simply too negative, and no new money is flowing into crypto right now. That’s why you need to adopt strategies that can help you survive this market, until things turn positive. Otherwise, you will run out of money.  So how do you survive in this market?

Well, there are a number of moves you can make and navigate quite successful until the market rebounds. Some of them are as below:

  1. Hold on to fiat

In finance, sometimes the best trade is a no trade. Instead of putting money in a crypto that is likely to lose 15% of its value in a week’s time, you would be better off holding on to fiat, then buying in, when prices stabilize. Just to give you, perspective on the importance of holding on to fiat, imagine if you had the money to buy one bitcoin when it was still above $15, but since the long-term charts were showing signs of a correction, you decided to hold on to your fiat. Today, you would have the capability to buy 2 bitcoins, with the same amount of money you would have used to buy one bitcoin 6 months ago. This strategy applies even in the short-term. Looking at the charts, the market looks set to drop lower over the weekend. As a smart investor, it would make lots of sense to wait it out until the market settles at a lower price before buying.

  1. Short the market

Most people in crypto believe HODLing is the only strategy. This mindset consolidated after the 2017 rally, and many people are hopeful of a return of the same in the near-term. While crypto will rebound, you can miss out on lots of opportunities through blind HODLing. To survive in the market, learn how to sell when clear opportunities to short the market arise.  Shorting the market at the right points can make you lots of money in a bear run. The trick is to drop the emotional attachment that most people have in individual coins, and trade based on logic.

  1. Scout for small-cap altcoins

While bitcoin and most of the big coins have been in the red for some time now, there are small altcoins that have been performing quite well for whatever reasons. Most of the times it’s because of a listing to a new exchange. If you can trade these coins based on such news, you can make lots of money. Most of them tend to rise by over 20% in a single day.

  1. Pivot to bear-friendly coins

Not all coins have been affected by the crypto market. Binance coin (BNB) is a good example of a coin that has performed well, all through the bear market. In the last 5 months, Binance coin has doubled in value even as the rest of market drops. It would make sense to buy into such coins and grow your money, while you wait for the bear run to come to an end.

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This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.


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