Bear markets are frantic and frightening, but they’re a natural part of the market cycle and necessary for continued price appreciation.
Buy low, sell high- wealth is created this way. While it sounds simple, very few do it in practice. If they did, every investor would be a retired multi-millionaire by now.
Here are some more constructive tips.
1. Have an Income:
Make sure you have a reliable source of income. The quickest way to wreck your life is to invest with all you own. Never invest more than you can afford to lose. A stable income also grants you the luxury of waiting multiple years for crypto to thrive.
2, Knowledge is Power:
Start by learning and fully comprehending the fundamentals of crypto, then advance your knowledge by delving into more advanced topics. If you do your research and invest wisely, the market will reward you – you can never stop learning.
3. Cash is King:
Can’t buy the dip or distressed assets if you don’t have cash.
4. Risk Management:
Expect prices to go lower than you expect. Convinced this is the bottom? Avoid going all-in because you could be wrong and prices could fall further. Also, exit when you are wrong and if a certain support doesn’t hold.
5. Don’t Try to Buy the Bottom:
Don’t FOMO into every relief rally thinking the bottom is here and you missed out, but rather wait for signs of strength. Accumulation is your sign to start buying or DCA. The bear market won’t end in a day, it will take many months to recover.
6. Stay Away from Sh*tcoins:
Avoid investing in projects with no fundamentals, even if they are hyped & marketed well. This gambling strategy may work in a bull market, (still a game of musical chairs), but not in a bear.
7. Build Conviction:
Have conviction in your investments to withstand the blood in the market. Conviction comes with proper research & dedication. There will always be buyers & sellers at specific prices – the market won’t go to zero. Avoid FOMO & FUD, and don’t rush your judgments.