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BCH, All Cryptos Down Almost - 100% But My Portfolio up 200%. How We Survive A Bear Market

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Avatar for Ugomarcel
Written by   14
5 days ago (Last updated: 4 days ago)

Not again!

Woke up this morning to see the market taking another dip, After yesterday's moves. Dashed optimism. There has been some form of hope of a further bullish progression. I guess we have not seen the bottom yet.

Source: Mike Baumeister unsplash.com

The market has been in a free fall for some months now. Virtually all coins has been falling . It took me some time, but I finally realised we are in a bear market. From all time highs, to below 2 years lows, as we have now.

Bitcoin fell from an all time high of over $69,000 to a low of 17,588. An almost - 70% fall. The number one cryptocurrency is currently trading at 20,450. In the same vein Ethereum rose to a high of over $4000 and fell back to a 2 years low of 880, a - 75% fall.

BCH is even worse off, taking a - 85% hit from its recent high. From a high of $1650 in May last year to a 2 uears low of 106. This market is not for the feint hearted.

If this is not a bear market, I don't know what is. The fact is, we have been here since the second quarter of 2021, we just didn't seem to pay attention. Most probably because it was a gradual, slow process. Unlike what we had in 2018.

Technically, everybody holding a token or a coin for over one month should he in a loss. Your amount of loss is a function of how long you have been holding. Bch holders being the worst hit with over 1000% loss so far.

I believe one of the reasons why we buy a token or coin is to eventually make money from them. Seeing them decline in value does not please anyone. It takes a lot of steel hands to still be holding cryptos at this declining prices. Imagine buying bch at a May high of $1650 and still holding at its current price $115. What could be more heartbreaking?

ZERO SUM GAME?

The funny thing about crypto, just like you have in life is, just as people are loosing money, some others are still making tons and tons of money from this bear market. I don't think I would be wrong to say crypto is a zero sum game.

The fact is, many people are actually making money even in this Dangerously bearish market. I stumbled upon an article written by @eirolfeam ,talking about making about $1000 from this bear market.

For a fact, to most people, this is even the best time to make plenty of money. Did I hear you say "how do you mean?"

DIVERSIFICATION

The Beauty of the crypto market is how diversified it is, compared to other markets . Though complex, like any other financial MARKET. We should not look at it from one standpoint or from one frontend. Hodling is great but might just not be enough. What if the tokens never recovers?

LET'S MAKE LEMONADES

They say when life gives you lemon, you make a lemonade. So when the market gives you a  trend, you CREAT multiple scenarios with it. In crypto holding on to just one view 'could' be suicidal.

As earlier stated, the beauty of the crypto market is its diversification. There are many ways to approach this market. There are many ways one can profit immensely from the market irrespective of the market trend. Irrespective of the market being bullish or bearish. The thing is, we need to understand what to do and how to do them. If possible get the needed skill set.

I have been hodling some tokens, BCH inclusive, since last year. As you might guess, my hodling account should be down by about 70% to 80% as a result of this bear market. It is that bad.

What if I tell you that my total portfolio is up over 200%? I might be down holding, but I more than cover up with other crypto activities. As a matter of fact it doesn't matter for me what the market is doing. When you learn and develope some certain skill sets, it doesn't matter the direction of the market, you just tackle them head on. You are prepared, whatever the market throws at you.

The question is, how do I protect my money and even make more money in the face of falling crypto prices. What if price never recovers, what happens to my held coins?

Like I stated, I am loosing money holding my coins. In order to mitigate my losses and boost my chances of making more  money  in this market, I do a number of things which has proven to be a game changer.

DCA: DOLLAR COST AVERAGING

We can't talk about this enough. This simply means adding to my holding portfolio even as prices continues to go low. This is mainly for good coins with very good fundamentals like BCH. The future has never been brighter. I see it attempting and even surpassing the previous high. This doesn't requires much skills, just try to add more, no matter how little, as price keeps dropping.

SPOT TRADING

Yiorgos Nitrahas unsplash.com

Spot trading requires some level of skills so we don't gamble with our funds thinking we are trading. We basically buy when prices are low and sell off when prices are high. These are normally short term trades. You need to know the right moment to buy and when to sell off.

For instance buying btc at a low of 19000 to sell back at a high of 21,300 for a 12% gain. That means if you invested $1000 you should be having a profit of about $120 after selling. Sounds easy right, but it could be tricky. You need some level of skills to maneuver very well. Crypto is very volatile, without the right skills you will loose your money.

FUTURES

Source: Kelly sikkema unsplash.com

Futures trading is a bit more technical than spot trading. In spot, you buy an asset and wait for it to appreciate for you to sell and make money. You only make money when price appreciates.

In futures, you have the opportunity of making money whether price is appreciating or depreciating. You can place an open order to buy or sell. For instance, the price of an asset is 200 and you expect the price to go lower, you can place an open order to sell. So if prices goes lower than 200 you are making money. This is not obtainable on spot.

One feature of futures is the ability to use leverage. So you could magnify your profit by set margins. If you choose a 10x leverage, it simply means you will be multiplying any profit by 10. So if originally your trade is profiting 10%, your are getting times 10 of that. Note that you would also loose times 10 if the trade goes wrong. Remember "Leverage is a killer."

So with futures you could make money in any direction the market goes, just be accurate when predicting price. You need a lot of knowledge to be able to trade futures. It is highly risky and not to be played with without knowledge. I have more than doubled my portfolio with futures in this bear market. You could too, just learn.

One thing you must know is that futures trading is highly risky. Greed is a great killer in this market. Because there is a 20x leverage does not mean you should use it. Just like forex trading, you need skills to navigate. I must say, the bulk of my profit has come from trading futures

LP FARMIMG

LP farming has been a good contributor to my portfolio. Some people will ask, how do you farm when everything is falling, considering impermanent loss.

After suffering so many losses, especially in SmartBCH, I am careful what farms I invest in. As a rule, for now at least, I only farm stable coins. I discovered farming phbd/USDC, both stable coins, on polycub.com since early this year. The farm Started with an APR of 57%, now its about 27%. Which means, if it remains at this rate, a $1000 investment should give me a return of about $23 every month. It was actually more than double of this when it started. What could be better than earning money without too much risk.

All of this, one way or the other has contributed to growing my crypto portfolio even as market continues to plunge. That's the beauty of crypto. Diversify your resources.

I believe anyone can achieve this, you only need to know how. It is not rocket science.

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Avatar for Ugomarcel
Written by   14
5 days ago (Last updated: 4 days ago)
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Comments

I find it hard to believe the figures you are quoting. Would to see how you worked that out.

If your portfolio started at $1,000 / 1000 various tokens. If you did nothing but HODL in your wallet you would still have the 1000 tokens but their value would $300 (-70%). Now let us assume you used all your tokens to get the max return. Your portfolio is now worth $3000 (200%) or you have 10,000 tokens So you would have been able to turn 1000 tokens into 10,000. An incredible performance. Even more incredible if half your portfolio was not being used and had lost value. Means the other 500 tokens had to work even harder. DCA is adding more fait to the stack and will probably have a negative impact on the 200% LP Farming is only 27% ROI Sounds like leverage is doing all the hard work.

I traded the last crypto winter on Binance and was able to increase the amount tokens but still made a paper loss, handy at tax time. Best trade turned $150 in to $6000 but the $6000 eroded over the course of the winter. We didn't have leverage back then but that is a double edged sword, can go both ways.

Look forward to hearing a bit more details on the maths side

$ 0.00
4 days ago

I think I got my calculations wrong on the percentage loss . Bch actually lost about 80% , My bad for saying over 1000% initially but I think I did correct it. I have different accounts that makes up my portfolio. I have an account specifically for hodling and dcaing. I have another for my tradings, spot futures. Lastly I have a different account for defi. My hodling account is not doing well at the moment, that should be obvious I believe. But my trading account consisting of spot and futures are doing fantastically well. This is actually where most of my profits come from. For my defi account where am farming stable coins, the returns is not that great but something worthy regardless. If I make above $20 every month on a $1000 investment, though Conservative, I think it's worth it. I don't have much in my hodling and dcaing account. I am more of a trader. I am not loosing that much hodling. So all this different accounts make up my portfolio. By the title of my article, when I said bch, all crypto down by almost 100%, I actually mean the general crypto market, not my portfolio. Hope you understand bro. Would explain more if you dont

$ 0.00
4 days ago
$ 0.00
1 day ago

" Bch holders being the worst hit with over 1000% loss so far." ??????? How is that possible or is it a typo on the calculator?

$ 0.00
4 days ago

I'm doing spot trading too, hopefully it can help me recover some of my losses.

$ 0.03
5 days ago

Yes it should. I read some of your articles about your trades. You doing quite well. Just be careful

$ 0.00
4 days ago