Yes it is true. At the current time of writing, we are most certainly in a bear market. For many of you, this is your first time experiencing this. For others, this isn’t your first rodeo and the trauma from the 2018 bear market has got you moving correct this time. Remember the first step in a bear market is to SURVIVE. Here are a few tips on how to do this:
Stablecoin Ready
This is what we call our FIREPOWER, and it is probably the most important aspect of investing. Without ammunition, you are unable to fire a gun. In a market sense, without having a healthy amount of capital available in stablecoins (whichever stablecoin you may use), you are unable to take advantage of dips or in this case, a bear market.
We would suggest you make it a habit of topping up your ammunition monthly! This means adding to your stablecoin (e.g. USDT, USDC, BUSD etc.) pot regularly. We all know too well the feelings of sitting on the sidelines during a crash and being unable to get in on the action. This is NOT a situation you want to be in. Staying stables ready will most certainly be a real asset in a bear market, and you should get into the practise of doing so.
Profit Taking Strategy
We have all been there! Having absolutely nothing to show for it despite previously seeing your 10x gains. This is a huge cause of market heartbreak and PTSD for many investors. It’s no good saying you had a 10x play but don’t have anything to show for it.
Before a bear market, a bull market was in play. Have you created a cash out strategy? Let’s say you have a coin doing extremely well, do you know how long you are going to ride it for? When are you going to cash out 20% of your position? Then 50% and so on and so forth. Or are you simply investing for vibes? Riding it to the top and then right back to the bottom like some passenger lol. HAVE A PROFIT TAKING PLAN.
Fundamentals
It’s simple really, coins with great utility will do better than shitcoins with no utility. Of course all coins will experience a level of decline in a bear market. But if you are more exposed to coins with a great utility, then generally these tend to hold up better in a bear market and give you greater peace of mind. You can almost anticipate its trajectory post bear market.
Do not marry hype, meme or shitcoins and you will be fine. If you do grab these plays then be sure to take profit and exit. These projects are generally short term and won’t be around for long.
Psychology
Have you ever experienced a bear market? Well, if you haven’t, let us offer a vivid description. It is mentally taxing and even the most experienced investors struggle! This is especially true if you haven’t structured your portfolio well. Nonetheless, we play the market and never let the market play us. Do not allow your emotions to get the better of you. Do not have an emotional attachment to the amount of capital you put in. Every risk must be calculated.
Day Trading
Firstly, this is not for everyone! You must learn how to read price action and analyse the charts properly first. This strategy is very rewarding but can also be very punishing to your capital. You can utilise leverage to minimise risk and open larger positions, as well as taking advantage of not just UP movements but also DOWN movements, through LONG and SHORT positions. The earning potential is unlimited.
Staking
This here is something the banks will never give you and for long term investments, it is simply a must do! Staking protects you from an element of market crashes and enables you to gain. Let’s run some quick numbers: If you stake $10k on a project paying out 30% APY annually, after 1 years’ worth of staking and assuming the price stays the same, you will now have $13k. If that cryptocurrency was then to crash by 30% the following year, you would be immune to that market crash because of staking and the rewards you gained!
Staking is a great strategy but be sure to find a balance between staking a great project with decent APY vs chasing after 4,000,000,000% APY and then losing all your funds in a rug pull.
Stock Investing
Quite simply, diversify! We recommend managing a stock portfolio alongside crypto. Why? You may ask. Because money will always flow somewhere into something. When money flows out of stocks, it generally flows into crypto. Equally, when it flows out of crypto, it flows into stocks. Follow the trend, follow the money.
Nodes
In simple terms, a node is part of the blockchain network that acts as a decentralised digital ledger. Node owners get rewarded and one of the most popular nodes out there is known as $STRONG nodes. The current reward for operating a Strong node is 0.1 STRONG per 7,000 blocks. This works out at 0.092 STRONG per day. Assuming Strong holds it’s value and rewards remain the same, that works out at about 27% per month. This is simply astronomical, and this earning can cushion your entire portfolio from market crashes!
Dollar Cost Averaging (DCA)
Do not ape in and invest for vibes. DCA stand for dollar cost average and if you wish to survive the bear market, you must develop the mental fortitude to never go all in at once! Always average in or average down. This point equally ties in with having access to having ammunition on deck: stablecoins (whether that is USDT, USDC, BUSD etc.).