{"id":8016,"date":"2022-06-21T15:22:33","date_gmt":"2022-06-21T09:52:33","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=8016"},"modified":"2022-06-21T15:22:33","modified_gmt":"2022-06-21T09:52:33","slug":"survive-the-crypto-bear-market","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/survive-the-crypto-bear-market\/","title":{"rendered":"5 Things You Can Do To Survive the Crypto Bear Market","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
The Crypto bear market is here and things already do not look pretty. Billions of dollars have been wiped off from valuations, whereas thousands of accounts have been liquidated.<\/span><\/p>\n
As the dust settles & Crypto Winter begins, it is likely that more projects will go under as funding dries up. <\/span><\/p>\n
What can you, the average investor, do in this situation? <\/span><\/p>\n
Here are 5 Things You Can Do To Survive the Crypto Bear Market. <\/span><\/p>\n
Bear markets are notorious for scam pumps, as bulls and bear euphorically chase tops and bottoms on a level-by-level basis.\u00a0 <\/span><\/p>\n
You may think that your favorite coin has hit a bottom and proceed to open a leveraged long position. Before you know it, the pump may prove to be short-lived and the downward trend may continue. <\/span><\/p>\n
Similarly, you may give in to the demise theory and open a short position. Suddenly, a scam pumps the other way may stop you in your tracks.\u00a0<\/span><\/p>\n
The end result is loss of capital, which is not your goal & hence should be avoided. <\/span><\/p>\n
The Bear market is characterized by stagnation in the short term and a downward sloping trend in the long term. It is difficult to identify trends in such a market, so the best advice is to avoid magnifying your losses through leverage. <\/span><\/p>\n
Any project that you are invested<\/a> in and which lacks a working product that generates revenue is, as of today, a meme. <\/span><\/p>\n The reason is that there is nothing behind the coin except a community holding up the price and when the market gets tough, it is likely that this community will also jump ship.\u00a0<\/span><\/p>\n What is more concerning is that all these new projects require funding to continue to develop their products and start earning revenue. The Bear market is characterized by a loss of venture capital funding for these projects, leading to many of them closing shop altogether. <\/span><\/p>\n If that happens, you are likely to lose all of your money. <\/span><\/p>\n Dollar-cost averaging or DCA refers to the investing strategy whereby you invest a fixed amount of money periodically into a coin consistently without regard to the price. <\/span><\/p>\n The end result is that you end up lowering your cost base at a blended acquisition price and are primed for a value boost when the price action turns positive. Consider an example.\u00a0<\/span><\/p>\n <\/p>\n As can be inferred, you are continuously averaging down your position and accumulating a solid coin in preparation for the next bull run without worrying about the exact bottom or stretching your finances today.<\/p>\n The end result is that when the bull run comes, your profit on the trade if the last ATH is hit, shall be $7,350 instead of $1,500.<\/p>\n Staking is the process whereby you delegate your holdings of a coin to a validator who participates against other validators for the right to verify transactions on the blockchain. In return, the validator earns a fee and he shares the same with you as a staking reward. <\/span><\/p>\n The beauty of the system is that it allows you to passive increase your holding of a coin while all the time reducing the cost base. Consider an example.\u00a0<\/span><\/p>\n <\/p>\n As you can infer, staking rewards will help you lower your cost, increase your coin holdings and help you get out of your losses faster. <\/span><\/p>\n Bear markets are a great time to learn, as the dull trading environment allows a break from the hoopla. <\/span><\/p>\n Utilize this time by investing in yourself. If you are a trader, this is a great opportunity to brush up on your technical analysis skills. If you are a value investor, learn tokenomics. <\/span><\/p>\n The best part? <\/span><\/p>\n You are learning a skill that will not only help your investing \/ trading in the long run, but shall help you develop a side hustle<\/a> to monetize your experiences.\u00a0<\/span><\/p>\n You would be surprised by the amount of money people are making from Crypto just by talking about it. <\/span><\/p>\n As an example, this gentleman<\/a> has 40,000 subscribers to his Facebook page. He teaches technical analysis<\/a> to a live audience – one hour every day & charges USD 10 per subscriber per month. That is a revenue stream of US$ 4.8mn per annum! <\/span><\/p>\n3. Practice Dollar Cost Averaging<\/b><\/h2>\n
4. Practice Staking<\/b><\/h2>\n
5. Learn & Monetize In The Bear Market<\/b><\/h2>\n