How to survive a bear market in crypto? 📉
We know guys, it has been a tough week for all of us! But hold on and believe it WAGMI🚀.
Yes, It is an L.😬 when you see that candle going down 📉crypto, but you gotta be calm, aight? And what do you do, you learn⚡ and make this bear market a snack🙌.
Here are three things you should do in a crypto bear market.💸
Follow the steps below :
1. Use dollar-cost averaging to buy the crypto dip
‘Buy the Dip (BTD)’ 🥣 everyone knows it right? It is a common phrase across the crypto community which refers to buying up a certain amount of cryptocurrency whenever there’s a significant negative correction 📉 in the market.
The idea here is, that if prices get back to their last ATH, investors who bought the dip will have a sheesh💸.
ATH refers to an All-time high.
So, you can buy the dip in a variety of ways, and The most recommended among them is "dollar cost averaging”. WTF 🤷♂️is this, you ask?
This is as simple as breaking down your investments into smaller chunks and investing them on a regular basis📆.
Now, for an example, let's say you have 50,000 rupees in your savings account which you wanna invest in. So, instead of investing all of it at once, what you do is, split the amount into any number of parts (say 5 of 10,000 or 10 proportions of 5000). dank right?🎆
Also, always remember that only a Bear🐻market has the potential to make you a crypto millionaire💸; it’s the time for execution. Bull 🐂market, on the other hand, is simply the results of your execution.
2. Do not PANIK❗
It’s easy to say, “Don’t Panic.” However, it is not as simple as it sounds right? 😬
So, your mindset 🤯 plays a major role here. You have to use a TLT⚡ approach in this situation.
TLT stands for Think Long Term. 😎
Making a proper plan📝 and sticking to your plan can move mountains🌄.
When you started investing in the crypto market, you did your research(we hope you did); you chose fundamentally strong projects; you invested the money for the long term.
And now, this is the point 🧨when you have to prepare your mind🧠 and make it believe that these dips are normal 🧘♀️. Let’s be honest no one remembers these dips 10 years from now.
If you do your homework📜and make a solid plan, you should be able to navigate this bear market with ease⚡.
So, remember to reap the gains💪, maintain some cash reserves in case of a crash, and keep your calm when the bears come in😎.
3. Invest in multiple crypto assets to diversify your portfolio
Ahem🤧, now let’s address the elephant 🐘 in the room DIVERSIFICATION.
After witnessing the recent LUNA crash, we believe we need not stress on the importance of diversification.
Just as it is impossible to predict the lowest price 📉 of any coin👛in a bear market, similarly, it is difficult to tell which cryptocurrency will recover the fastest and give us a bullish rally⚡
For this strategy to work, you might need to reduce the trade sizes for some of your favorite coins, as you have to take entry in other coins as well but yes, it’ll also reduce your overall risk.
And obviously, we expect that, for the sake of diversification, you are not going to randomly select some crypto and invest in it. DYOR🚀
And how to Do Your Own Research (DYOR), here is another newsletter on that.
We will be bringing in more such crypto and DeFi in the next newsletters, so don’t forget to hit that subscribe button.
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Good work.. looking forward to it