How to Benefit from a Bear Market

in #cryptocurrency7 years ago (edited)

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Before I begin this video I really need to emphasize that this is not investment advice, and really, everything presented to you here is my opinion and is the result of my own research as well.

This should not be taken as professional investment advice.

It’s easy to get greedy in this space where you can see big percentage profits in relatively short amounts of time, but if you ever lost sight of this fact, bear markets are great for handing you a dose of reality.

What I mean by this is that the most popular investment advice ever given is to never invest what you can’t afford to lose. During a bull market when everything is going great and your seeing your investment increase this advice tends to take a backseat.
What we all need to keep in mind is that every market, no matter if it is, stocks, real estate or cryptocurrency, they all have bear markets.
If you did end up investing money you otherwise would have needed to cover your serious expenses, like your mortgage for example, a bear market will make you deeply regret that decision.

Bear markets don’t last forever, but they can keep the markets down for long periods of time.

If this is the case, than perhaps holding onto your investments would be a good option for you.
Unless you are an expert trader, earning an income through trades in a bear market can be awfully tricky.

If you’re deciding to hang tight and ride this out, here are some great ways to help you prepare for the next bull market.

^^^^^View Video Here ^^^^^^^

  • Take your time to deeply research projects.

Find potentially undervalued ones that could see a lot of appreciation when the bull market returns. Get to know the team and the community, you’ll finally have the time to see how the sentiment is during a down time and how committed the team is to driving their project forward despite a drop in price.

  • If you’re hungry to see any kind of positive ROI, then ICOs could be an option for you.

If you do choose this route, please keep in mind the lock up period between the ICO and when the coins are listed on exchanges, as this will affect your own liquidity. Also, you’ll need to ACT FAST once they are listed on an exchange to see the best profit.

  • Remember that now is a good time to buy into coins you couldn’t afford to before.

The best case scenario is that you took some profits near the top of the market and you now can take advantage of this down trend. If you weren’t able to take any profits but you’d like to move your investments around to get some promising coins, just remember to consider the fact that the coins you’re trading have depreciated as well. The trick is to identify which coins have had less percentage drops and which coins have the potential for higher percentage gains once the market picks up again.

  • If you’re considering selling now to buy back as the dip progresses, be wary of not buying back at a higher price.

I’m only saying this for those who can be really unemotional when it comes to trading. (This is also why I really try to stay away from giving any kind of references for trading at all on this account.)
I truly believe in researching different projects and being able to identify ones that have the best long term potential, this makes hodling much easier and bear markets much less apocalyptic.

  • It’s a great time to go back and recognize the signs of “the top”.

Bull markets only last so long, this could help you in the future when we inevitably see this cycle again. So go back and see what the mainstream media was saying around December of 2017, did they suddenly change from anti cryptocurrency to now giving tutorials on how to buy Ripple? Did Jamie Dimon completely change his tune from calling Bitcoin a fraud to now looking into having his own uses for blockchain tech? If you were a sucker in 2008 when that market dumped, you’ll probably already have seen these signs coming, but for those of you who are new to this realm of investing, these are invaluable insights to have for the future.

  • How to hedge your investments:

Look at “stable coins” like Tether, DigixDAO, when they release their DGX coins, or the offerings on Bitshares like BitUSD, but please keep in mind that even these pegged cryptocurrencies will indeed be feeling the tension of the dropping prices. If the tension is too much like a rubber band, they can very easily snap and you’ll be left with a loss either way. If you don’t believe me, just take a look at Nubits.

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I personally find it best for me personally to pick a comfortable price and when it reaches that point I buy. Then walk away.

This way I find it easy to not worry any further.

Sounds like a good strategy. You must be a long term investor then? Now is time to buy when the streets are red with blood.

That's a good strategy, particularly "walking away." I struggle to not check prices several times a day. As for going in, I try to chop up any lump sums and try to average it out over weeks. I sit it out if prices rise...etc. But yeah, you sound disciplined and that's what it takes and what I'm striving for in my participation in this new economy.

If you don’t believe me, just take a look at Nubits

a perfect example, I even wrote in one chat that this is what will be with Tether)). Now this is an intrigue, NBT will be able to recover, or not (once they managed it from 16 cents!).

Looking forward to our annual hang at Steemfest 3 Heidi!
Oh, and for everyone concerned about the drop:
There was this crash, WAYYYY back in the year 2000ish that didn't start coming back until 2003.

Ask anyone who believed in the future of the "internet" back then, and someone who bought Apple stock because they came out with this neat device called an 'iPod', and took over Shawn Fanning's position by dropping this neat service called iTunes.
I bought stock in Apple back then because I invest in genius and don't look back.
Here's my move in June -- NOT invest advice.
Just what I'm doing, again, 15 years later...
Here's a hint:
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😉

Have an awesome weekend everybody!!!
Craiggles 😀

Just let it go down now and we will bounce up even faster guys. And please do not panic now or at least buy back later but do not miss out the bounce, because I am almost sure it will happen. Thanks for the video Heidi.

Have a great day.

Cheers.

Hi wow thanks a lot for your upvotes. I really appreciate that. Thanks.

"Buy from the pessimist and sell to optimist."

you must take profits when market keeps going up, I sold 70 % close to ATH...ready to get back in...thanks

Hey Heidi, hope the bear market will stay quite a while and rebound end of summer!

CoinCheckUp.com - on of the best (or even the best) stats, charts, data and analysis of crypto.

I have to admit that it is hard to keep the faith but I’m not planning to sell with a loss!
I rather prefer to see my portfolio go bankrupt then to sell my coins to cheap!
But indeed the bear market can’t last forever!
And if it does then have the acknowledge our defeat and all the FUD won!
But I am confident that the for sure the blockchain technology will go to mass adoption within 3 to 5 years. Lets hope that he cypros will follow the same path!

I read it well. Thank you for the good information. It is weak but I vote.