5 Ways To Win in a Crypto Bear Market


It can be tough when the market is dipping day after day and you see your investments dropping in value. My portfolio is in the red right now, but I’ve learned a few techniques to help me cope with the bear market conditions that I would like to share with you. So, let’s keep calm and hodl.

It’s not timing the market.

It’s time in the market. My dad gave me this piece of advice years ago, that he picked up from his financial advisor. Now, he was referring to the stock market but the concept is the same. I don’t day trade. Period. I’m a long-term investor thinking years down the track. You can spend hours trying to analyze the market, staring at charts and watching videos from all the crypto “experts” and being the victim of analysis paralysis. The simple fact is you will never, NEVER get in or out at the exact right time. You can’t beat the market, you have to use the market. Knowing that markets are cyclical and they go up and down is more important than trying to find that perfect entry or exit point. Do your research, don’t FOMO into a hyped coin or token, and let it ride.

Trust yourself

One of my favorite quotes is from Goethe a German poet and writer, “Trust yourself. Then you will know how to live.” I have it on a fridge magnet where I can see it every day. I firmly believe that once you have decided to enter the market, then it is done. Buyers’ remorse is a very real thing. We’ve all felt that pang of unease after making a big financial decision, whether it be a purchase or investment. You have to trust in your decision-making. If you have FOMO’d in and have not considered the consequences then that’s on you. But if you have made a conscious, thoughtful decision you must trust that you made the right one and let it ride out. Second-guessing yourself and trying to make a quick buck with a day trade will end badly. Think long-term and trust yourself.

Don’t believe the hype!

Public Enemy said it best. FOMO is real, I’ve been there and felt it. That dreadful feeling of doubt that creeps into your brain, “Prices are up, I should get in now while it’s rising” can lead to, “I know this coin is down right now but, it will go back up for sure.” The web3 space is just getting started and there are a lot of over-hyped projects, whether they be coins or NFTs. You still need to carefully consider the fundamentals, and utility and make an educated decision. Getting pulled in by hype can cause real anxiety and stress if things don't go your way. On the flip side, it can cause a blasé attitude if you have some success and make you think you have it all worked out. Step back and take a breath before diving in.

When in doubt, zoom out.

I’m not sure who used this phrase first, but I first came across it on the YouTube channel of Zach Humphries, a crypto commentator, and educator. It’s an incredibly valuable piece of advice. Markets can be both up and down depending on the time frame you are looking at. Bitcoin is down 20% over the past 7 days, it’s even down to the lower points we saw in July 2021. But, the overall trend is still on the upside. The value of perspective cannot be overstated.

Have a strategy

Your strategy might be as simple as holding for a year and then selling no matter what. Perhaps you are using dollar-cost averaging to add to your portfolio little by little. Whatever your strategy is, just having one will set your mind at ease. Write it down and track the results. In times like these when the overall sentiment in the market is fear, having a strategy for when you enter or exit takes the doubt out of your decisions. You have a plan, you execute that plan, then you sit back and evaluate the outcome. You will learn from it one way or another.

As mentioned earlier having a long-term view and trusting in your decisions are important elements in controlling your stress and doubt in a bear market. Don’t let yourself get pulled in by hype and make careful thoughtful choices and then stick with them, good or bad. Having a strategy and using buying techniques such as dollar-cost averaging can be vital to your overall outlook and mental health during stressful times. Remember that real money can be made when prices are dropping and that value opportunities are everywhere. Let the market go where it will, observe and get in at a point where you are comfortable. Trust that markets go up and they come down but that long-term with the massive ongoing adoption of crypto the future is very bright. We are all still so early.

Thank you for taking time out of your busy day to read my story. If you have enjoyed what you’ve read please consider subscribing to stay up to date with future stories I put out, https://medium.com/subscribe/@lukewillis3. You can also support me by checking out my crypto-themed designs over at Degen Dezine.