Surviving Through Crypto Bear Market – What Are The Tips For Yourself?

Crypto Bear Market is the thing you may take into consideration, Most fresh investors or traders usually ignored this matter. Since New users may be attracted by the high Annually Percentage Yield rate it brings to them. The cryptocurrency market is quite fluctuating. Therefore, before making money you must protect your wallet first. Let’s bePAY why it is one of the most important traits.

What Is A Bear Market In Crypto?

Price decreases persist over an extended period of time, which is known as a “bear market” In the context of the financial markets, it refers to a situation in which the price of a stock drops by at least 20% from its previous highs. 

Individual stocks or commodities may also be regarded to be in a bear market if they undergo a fall of 20% or more over a prolonged period of time—typically two months or more—in the broader market. In addition to a recession, a bear market may entail a decline in the overall economy. Bull markets and bear markets may be compared.

In general, a bear market is characterized by a severe market slump characterized by precipitous price declines over a relatively short period of time. Cryptocurrency markets are more volatile since they are smaller and less regulated than regular markets. As a result, it is not uncommon to have crypto bear markets that last for months or even years, with price declines of up to 85%.

Bear market definition

IMPORTANT KEY POINT

• Prices in a market are said to be in a bear market when they fall by more than 20%, and this is generally accompanied by a lack of confidence among investors and dim economic prospects.
• Short-term or long term bear markets are possible. The former lasts for a few weeks or a few months, whereas the latter might last for years or decades.
• While prices are falling, investors may profit from strategies including short selling, put options, DCA, staking and saving in the cryptocurrency market.

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How Do You Survive Crypto Bear Market? 

Below are some tips for you:

Don’t Panic Sell 

The temptation to reduce your losses when confronted with massive price decreases is strong. Nevertheless, if you do so, you won’t get the benefits of rising pricing. Moreover, selling after a large loss is in direct conflict with the oldest financial rule: buy low and sell high. Obviously, this is more difficult than it seems since it’s difficult to predict the market. However, if you sell at a loss, you’ll be stuck with the losses.

Keep in mind why you decided to invest in cryptocurrencies in the first place. It’s possible that blockchain technology may revolutionize the way we handle our money, or that Web 3 will become the next iteration of the internet. Look at the reasons why prices have dropped to see whether the original investment hypothesis still holds true. That being the case, the moment to sell has passed.

Surviving through bear market season

Dollar-Cost-Average Strategy

You don’t have to sit around and watch your cryptocurrency portfolio lose value every minute of every day when the market is incredibly unpredictable. A “buy the dip” opportunity will arise for investors who have a fiat currency or stablecoin reserve or disposable funds in their bank accounts. Whenever the market has a major negative correction, this often used word in the cryptocurrency sector alludes to the process of buying up a certain quantity of cryptocurrency.

The theory is that dip purchasers will make money if and when prices rebound to their earlier highs. In the words of Warren Buffett, “When there’s blood on the streets, you buy.” DCA (dollar-cost averaging) is the best method for purchasing the drop, but it can also be done in one transaction. Making multiple transactions over time while dividing your reserve cash into smaller portions is what this strategy entails.

Buying a modest quantity and waiting to see whether the asset’s price drops further is a common strategy since it’s difficult to tell precisely when an asset has “bottomed out” (reached its lowest price before reversing). If it works, then go ahead and get some more.

For the most part, this strategy will provide much better outcomes than investing all of your money in one transaction, unless you happen to be really fortunate and go all-in at the right moment.

Bull-and-bear market crypto

Keep Your Long-Term View

For a long-term cryptocurrency was considered a digital goldmine. However, just like any other asset, it has highs and lows. Instead, taking a long-term view of the market might be beneficial.

There have been periods when the price of a cryptocurrency, like Bitcoin, has dropped dramatically and then soared dramatically. As a matter of fact, Bitcoin had a notable collapse in December 2017 when it dropped from $20,000 to about $3,200 in a matter of days before bouncing back

Do some research instead of dwelling on how much the market has fallen. It is never a waste of time to study cryptocurrencies in general or about a certain cryptocurrency in particular. It’s an excellent location to begin learning about crypto if you’re interested in one particular area. Alternatively, maybe you’d want to sharpen your financial acumen so that you can better handle risk in the future.

Never Invest More Than Your Financial Situation Allows

You’ve almost certainly heard this before, but it’s always worth repeating. Never spend your whole life’s wealth on a risky asset like bitcoins. While the promise of doubling your money is exhilarating, it is not worth the consequences. Regardless of where you invest, always invest money that you can afford to lose.

How To Make Money In A Bear Market Crypto?

During the crypto bear market, spend time researching different passive income options. In the face of dropping prices, knowing that crypto-assets produce yearly returns of 5% or more  gives peace of mind. Putting some of your cryptocurrencies into the staking, Yield farming and airdrop or finding a crypto work will assist take a tiny bite out of your wealth. investing in a bear market may seem to be dangerous, however:

Here are some crypto products that you can use to solve how to make money in a bear market crypto

Staking

During a bear market, investors may be concerned about the value of their assets, leading them to seek strategies to protect their investments. Staking is a strategy in the crypto world that may help you maximize your safety and profit over the course of a long-term investment.

Making money in a bear market tips

Staking, basically, is locking away your cryptocurrency on a blockchain for a minimum length of time to earn passive revenue. Not with saving your money in a bank savings account, staking may enable you to optimize your money and receive a return. Staking Ethereum on Binance, for example, may yield you an APY of up to 5.20%.  An exchange like BlockFi or Coinbase or a software and hardware wallet may be used for staking.

Yield Farming Leverage

Almost all investments will see price declines during bear markets. But, we can generalize this method by picking on a single token that you feel will see a price decline. Thus, this may be employed in almost every market circumstance.

For instance, even in a bull market, if you anticipate a token such as ETH will decline, you may short it on borrowing and lending protocol by initiating a leveraged yield farming position and borrowing ETH. This strategy is much more suitable for experienced users.

Fork

If you’re interested in a variety of altcoins, you may undoubtedly benefit from forks and airdrops. As you may be aware, a fork occurs when users vote to split a blockchain network in two. Both have a shared history up to the forking block, but after that, they operate as separate networks with possibly distinct rules, consensus, and other characteristics.

A straightforward example is Litecoin, which is a Bitcoin fork. Certain users desired that Bitcoin validate transactions more quickly and cheaply, and hence forked the network to include their own methods. What’s interesting here is when a hard fork is accompanied by an airdrop.

Investing in a bear market

Airdrop

An airdrop occurs when holders of the previous token get the new token in exchange for participating in the split network. Depending on the value of the forked token, merely holding it may make you quite an amount of money. Forks are rather regular in the blockchain industry, and staying on top of them ensures that you benefit from each one. While this is a unique sort of passive income, it is one that may actually help you if you pay attention.

Crypto Work

If you have the knowledge to trade and profit from cryptocurrency, why not get compensated for it? There are several professions available in the cryptocurrency field that will gladly pay you. Additionally, most of them accept bitcoin, which will almost certainly appreciate in value quickly after you buy it.

Additionally, a variety of alternatives are available. You may earn money via consulting, writing, marketing, or associating with certain initiatives. The alternatives are limitless in this case. All that is required is for you to utilize your imagination.

>> Learn more: What is social token? The new big trend in cryptosphere

FAQs About Crypto Bear Market 

Does It Have A Bear Market Crypto 2022?

Since January 2018, the cryptocurrency market has been in a bear market. As a result, it is probable that we will witness another bear market crypto 2022. Many believe that a bull market will begin in 2019 and reach its peak in 2022. However, one thing to keep in mind is that crypto is not subject to annual or seasonal cycles. It is contingent upon a plethora of variables that vary on a daily basis.

There is a great deal of upheaval and uncertainty in the cryptocurrency industry. Only time will tell whether crypto will resume its bull run. We may even be unable of forecasting it. It is preferable to keep a close check on the charts rather than making forecasts about the future whether Does it have a bear market crypto 2022 or not

How Long Is Crypto Bear Market?

A crypto bear market usually lasts a few months up to 2 years. let’s see the historical big bitcoin bear market record:

• The 2011-2012 Bitcoin Bear Market with the crash of 93% from the ATH price
• The 2014-2016 Bitcoin Bear Market with the crash of 85% from the ATH price
• The 2018-2020 Bitcoin Bear Market with the crash of 84% from the ATH price

How long is crypto bear market?

What Is The Origin Of The Phrases “Bull” And “Bear”?

The origins of this phrase are unknown, as many financial terminologies. As a result, bulls and bears are often referred to as “upward-facing” and “downward-facing” animals respectively. Theories and evidence on the origins of the phrases are, of course, many. This Merriam-Webster explanation is a nice place to start if you’re intrigued.

Final Thoughts

Cryptocurrencies, like any other asset, have ups and downs in their value. A bear market’s indications might assist short-term investors to build a portfolio plan that is appropriate for their risk tolerance and financial objectives. 

Try investing in a bear market may be dangerous. However, you can protect your portfolio first other than being stuck in FOMO or panic sell. Save your portfolio, maximize cryptocurrency products and try to learn more about cryptocurrency knowledge will help you survive through the cryptocurrency bear market in general and the bitcoin bear market in specific.