Crypto is here to stay. While it is still early, the cryptocurrency market is not going anywhere, and it may be beneficial to your overall investment strategy to consider becoming a crypto investor. Early investors, thought of as Innovators on the adoption scale, made the most money during the dot-com bubble in the late 1990s. What were they thinking? What did they do to keep their heads even when things were at their worst? This is what you’re going to learn today as we go over five simple bear market strategies you can use to get through any volatile time in the cryptocurrency market.
The best time to use dollar-cost averaging to lower the average price of buying a coin or token is during a bear market. Most people make the mistake of using all of their investment budgets at once, which means they buy at a higher price and may end up selling during a bear market for less than they paid. But if you play it right, you can use your fiat money to buy tokens in small amounts as you watch the price action of tokens. The results could be significantly better than if you bought everything at once. If you want to learn more, here is a piece from Rematic Education that explains how the dollar cost average works. How to Use Dollar-Cost Averaging.
Investing For Income
You can only change one thing during a bear market: how much money you make. It doesn’t matter if you aren’t making money during bear markets, but if you can make some passive income while the markets are doing their thing, it is a great time to reinvest it in coins or tokens that have gone down in price.
Look at the projects that give you a good return on your investment through reflections, staking, or external assets.
There is nothing else like it if the reflections are in stable coins. Here’s the thing: if you can find such projects, you can get passive income and buy at a lower price; generally speaking to theory is that the price will go up exponentially when a bull market starts. This can give you a significant return on your investment in the long run.
Playing Dead or Defensive
When there are a lot of buys and sells on a project, we should learn to stay calm, still, almost acting as if we’re “dead.” In a way, it is similar to what you would do if you saw an actual bear…the last thing you should do is run (or sell) in a panic.
You will see failed price rallies at the beginning of a bear market. These typically mean some investors are trying to cash out their profits on a price rally.
Play dead when the rallies fail, and wait until the price has stabilized before adding to your positions or starting a new project.
You could also play defensively. For example, if there are crypto tokens or coins that have survived past bear markets and are selling for a steal, you should feel confident adding them to your portfolio.
Long Term Growth Projects
Bear markets are an excellent time to research and find projects where you can buy for the long term at a lower price.
Rebalance Your Portfolio
You, or other investors, may have a tendency, especially when the market is going up, leading to an unorganized portfolio.
A bear market might be a good time to rebalance your whole portfolio by eliminating investments you no longer believe in or aren’t making as much money as you thought.
It is also a great time to get a more significant role in projects where you don’t think you have enough power because of their potential and quality.
You could also try to rebalance and strengthen your portfolio by doing all of the above.
Use the strategies above to survive the bear market and thrive in the growing crypto industry. The crypto industry is still in its infancy, and these bear market strategies can help you ride it out without getting burned too badly. Go to www.rematictokens.com to learn more. You can also follow our YouTube channel or view our Rematic Education video series.