Bear Market Survival Kit
By now, I would imagine that you have heard of a bear market and are probably in the same place as everyone else, wondering how to make it through. We are amidst a heavy bear run(most days are red(downward trend) days) and all of our investments have taken a pretty hearty decline and we are now in “hibernation”, hoping to see that tiny glimpse of green(upward trend). Most, if not all, investors are at this same stage, trying to plan the next move. If there is one thing I hope you can take from this read, is this: “Bull markets make you money, Bear markets make you rich.”
More of a Blessing Than a Curse
You may think that I am absolutely insane for saying that a bear market is a blessing. You may think that I am trying to make you feel better about the market and the status that it is in at the moment. To be honest, I am. That is because I have spent my fair share of “depression” time, being upset and angry that my investments are in the red. I have come to realize that there is no reason for it. If you are in it for the short term, get in/get out game, then maybe it is hell on Earth for you at the moment. However, if you are here and willing to play the long term game, you’ll understand what I am saying.
Prices are heavily discounted.
It is just like going to Target on Black Friday. However crypto Black Friday is just Black Sunday through Saturday. Bitcoin is down 66% YTD(. Etherium is down 71% YTD. Even smaller coins like Solana are down an impressive 92%! You can’t even find those kinds of deals at Walmart. This allows you to buy these coins at a much lower price than you would’ve been able to a year ago. Mathematically thinking, the lower the price means the more coins you can buy. The more coins you can buy, the more you can potentially gain.
Long Term Hold
Lets go back to as soon as 2017. The high of BTC in 2017 was around $19,000 USD. Almost exactly a year later, the price had dropped to near $3,000. That is a price drop of more than 80%. Two years later, we were on the climb of to what would soon be the all time high price of BTC at an astonishing price of $67,567. Put that in perspective. If you had bought BTC in 2018 for $3,000 and held it for just 2–3 years, you wouldn’t be 2x profit or 3x profit. Your portfolio would be in a total profit of over 22x, yes TWENTY TWO TIMES profit on your original investment. That $3,000 time is now.
Dollar Cost Average Your Portfolio
Combine the previous two items I mentioned and you have an investment strategy. Another term for that might be considered dollar cost averaging. That is one of the best investment strategies for a long term hold. Making sure that the average price of each coin you buy is as low as you can get. This is even applicable to your current investments. For example, you bought 5 Solana at $100. Your average price is $100 per coin. You held that investment up until now when you added another 5 Solana at it’s current price of $13.50. You now have 10 coins that average a price of $56.75. That way, when the price of Solana increases back up to over $100 again, you have made a 2x profit on all of your tokens! The lower you buy your coins, the lower your average cost is.
Stake Your Coins:
If you aren’t an avid day trader and are constantly buying and selling your coins, you might want to look into staking your assets. Staking works very similar to how a CD works at your local bank. You stick money aside for a set period of time and you gain interest on how long you set it aside for. Staking for crypto is very similar. You stake your coins for a period of time and earn a percentage back on your investment. Big crypto trading sites such as Coinbase, Binance and Cyrpto.com allow you to stake your crypto to earn an annual percentage yield(APY). For example, Binance(the platform I use mostly), offers 6% APY on $ETH, 3.5% APY on $BNB and as high as 13.50% APY on smaller coins like $ATOM. Most of these staking platforms also offer an autorestake option which automatically restakes your weekly earnings to increase the amount gained per week. The one downside is that most of these staking platforms do have a 7 days unstaking period which means that once you opt to unstake your coins, you won’t receive them for up to 7 days. However, if you are a long term holder and plan to buckle in for the long run, why not earn a percentage back on your holdings? Rather than just letting them sit in a wallet doing nothing.
Be Safe and Be Smart
The markets, especially crypto markets, are always going to be a volatile market. Everything I mentioned above could even go wrong. At the end of the day, before you make any single move, PLEASE do your own research. Do not listen directly to me or anyone else. The moves you make need to be based on research you’ve done on your own to understand the pros/cons, risks/rewards of what you are about to do. I will be the first to admit that I have lost money do to my own negligence. Due to my lack of research and understanding. Please also understand that these markets are somewhat unpredictable. There is only one thing given and that is that the market does go in two directions, up and down. Crypto is growing every single day and becoming adopted by more people daily. This leaves a massive market that is just getting started. I have spent an unimaginable amount of time learning the ins and outs of crypto and how it works and I encourage you to do the same. My goal is to bring you along with my research, findings, and thought processes so that I can help educate those who are in my shoes, that are just getting started, or even provide a different view for those who have been in the scene longer than I have. I want people to learn from my mistakes and gains and hopefully better themselves at my expense.
Thank you for reading and I hope you enjoyed and found it useful. If you, please hit the clap button and follow me to help support and grow!