Loading...

What to do in a bear market?

April 17, 2024
16
47
0
FinMeUp
Author
FinMeUp

Its not easy to be a Moonboy in the current market

For those of you who are still wondering whether we are in a bear market, have a look at the Bitcoin chart since Nov 2021 (image attached). Bear market? Indeed. One thing that does ease the pain is the sense of community in the cryptosphere - at least we have each other. Losing money together is better than losing money alone XD.

What does one do in times like these? Firstly, there is nothing you can do to turn the market around. Pessimism has well and truly set in and will probably continue to rule investor sentiment for the next few months.  Its not easy to be a Moonboy in the current market. You can, however, prepare for better times. 

Firstly, stop checking your phone. Its hard enough as it is. Accept that you have to wait it out. Turtle. Defend. The good times will return, and we will be waiting with open arms. Here are a few tips:

Dollar-cost average (DCA)

No one can see the future. What we do know is that markets are cyclical. Good times will inevitably be followed by bad times and bad times will inevitably be followed by good times. Where is the bottom? Was it 45K, 40K, or 35K? No. What about at current levels of around 30K? Maybe. Its hard to say. 

Personally, I believe we will bottom out between 20K and 25K, but I honestly dont know. The point is dont go all-in on a specific price level. Rather increase your exposure as the price keeps slipping. This will reduce risk and cause a lot less stress.

Staking

Not staking is the equivalent of putting all your cash under your pillow instead of in a bank account. Via staking one can earn between 4% and 20%, depending on the coin. Just be careful with outrageous yields rather play it safe and stick with the blue chips. 

There are various platforms to stake ones coins. I use Nexo, Kraken, Binance, and Trustwallet. Here is my staking portfolio: 

Crypto          Platform        Yield

Eth                 Nexo             5.5%

Bitcoin           Nexo              5.5%

BNB                Trustwallet   8.0%

Dot                 Kraken           12.0%

Ada                Binance        8.2%

Nexo              Nexo              7.0%

Matic             Binance         12.0%

Link                 Nexo              5.5%

Sol                  Binance         8.5%

KSM               Kraken           18.0%

Vet                  Binance         3.0%

Learn

Crying doesnt help. Whether you like it or not, you are now in it for the long term.  Spend a few minutes a day learning the basics and reading crypto news. I highly suggest that you learn more about your top holdings. For me, its Bitcoin and Ethereum.

Do you believe in the project that you invested in? Good. Learn about it what problem does it solve, how does the tokenomics work, who is the team behind it, how decentralized is it, etc. 

Closing remarks

Nobody can predict the future, but pretty much all successful investors agree that bear markets are where you make the moves that set you up for success in the next surge. Profit is made when you buy, not when you sell. 

By taking care of the basics now - whether that means steadily DCA-ing into BTC or ETH while prices are low, staking your coins to earn passive income, or growing your knowledge - youll be ready to capitalize when markets turn around.

 

 

 


Related Tags:
3 min read
Share this article:

Related Articles

All articles
Top