A bear market is a phase where investors and traders find a major resistance to earning a good amount of money from the cryptocurrency. As a cryptocurrency investor, the user would look at the chart numbers and feel that his investments are slipping away. He may have one question: How will he bear the profit in cryptocurrency technology?
Getting rid of the bear market is not easy if the prices of the crypto are decreasing more than 20 percent (yes! That is where we officially find a diminishing trend of a bear market phase). Specifically, investors find it difficult to manage their nerves when the cryptocurrency market is undergoing a diminishing bearish trend, and the top cryptocurrencies have observed their prices dropping by more than 70% to 90%. Hence, according to the saying that “every cloud has a silver lining,” users can make much from the bear market by following these mentioned trading strategies:
- Stay calm & assess the available options:
Whether you observe the bear market (falling cryptocurrency prices) as quite stressful to manage or as an opportunity to get the dip, always stay calm and objectively examine the situation. If you make Emotional decisions, you will most likely regret them later, particularly when trading.
At 1st, you have to ask yourself why you are trading in cryptocurrency in the first place. Can you actually believe in cryptocurrency’s long-term favorable results & want to get in the opportunities? Or are you only coming to make some quick money by short-term investment? The response to this question can be the stepping stone to finding a way out from the crypto bear market unharmed.
- Portfolio diversification:
Diversifying the Portfolio is a primary act in hedging the crypto volatility. You have to diversify your Portfolio in several cryptocurrency assets. You can explore other cryptocurrency earning options, too, such as staking. Staking is a simple way to make a portfolio and can save you from negative price fluctuations effects. Acquiring reliable stablecoins would also be a great idea. Normally stablecoins do not give significant profit; still, we feel satisfied if we know that we have invested our money somewhere safe. You can also get projects under a growing cryptocurrency ecosystem. You can earn these worthy projects by borrowing, staking, and airdrops.
- Dollar Cost Averaging (DCA):
Rather than investing money in a single go, you can also invest it in small bits of incremental amounts gradually. This way, you can take market downturn benefits without risking huge capital. If you made a yearly goal of investing $2000 on the Bitcoin Trading Platform, you can invest approximately $166 monthly or break it down into daily or weekly contributions. Investing fewer amounts at different values may save you the tension of time the market for reductions or seek trade entries for the best prices. DCA is an amazing opportunity for trading gradually & consistently.
- Try to use the market downtime to guide yourself:
The bear market is when you get the opportunity to educate yourself more about cryptocurrency at a slower speed to set you up for the subsequent bull market. With barely fear of missing out (FOMO) than a bull crypto market frenzy, you can use this period to learn about cryptocurrencies and blockchain. Also, it would help if you did your research on your viable options. Get Educational material on Crypto.com and biweekly ask me anything (AMAS) from industry professionals and in-depth research reports for advanced cryptocurrency users.
- Do not aim to short the Cryptocurrency Market:
When a few cryptocurrency investors may be trying to short Bitcoin & other cryptocurrencies (bet that the crypto price will drop continuously), professionals may advise against it. So, it is not a great strategy if you exist in the market to win. As per experts, the period too short is almost over, and it would be an emotional verdict that the cryptocurrency market will be nil.
- Try to get the best entry points:
In a bear market, you can always discover good entry points by anticipating a combination of indicators and tools. This is useful to investors who try to get quick investment returns. Indicators such as Average True Range, Relative Strength Index (RSI) & Fibonacci Retracement can assist you in discovering crucial points in the market. With rectangles and line tools, you can draw out critical prices where you can trade some of your money in finding out of a bull run.