Do not be afraid of bad market trend
Some people panic when the price of the coin on their watch list goes down. It is not a bad thing to have a bear market. In fact, the price of the coin going up and down is a good thing as it creates lots of opportunities for the traders and also introduces more people to trading. There is a small difference between the bear market in the stock market and the crypto markets.
In the crypto markets, there is a high possibility that a coin may not recover after the bull run starts. But in the stock market, usually, if the market conditions improve the stock price might also improve. I know a few traders who buy stocks when the Sensex is very low and sell their coins when the Sensex is high. This is a good strategy. They basically buy on very bad days and sell on very good days. This way if we invest in any stock we would be able to grab a decent profit.
Value is more important than price
The price of a coin or a stock is determined by market conditions. We all know that BTC is capable of hitting 60k USD again in the next bull run. The reason is that we have had a similar historic event in the past and there have been both good times as well as bad times. Now here we have to only understand how valuable BTC is and do our investments accordingly. The price of BTC may not be great right now but they might have a good potential to reach new ATH.
Today when we look at gold, we know that it is valuable and it will always have great demand. Sometimes there can be bad times for gold too. We might start thinking that if we had enough money or liquidity in hand, we would have purchased gold. The same applies to coins and stocks as well. Today if the market is dull and there is nothing exciting happening, we should understand that it can even be a good opportunity for us to invest right now and reap profits later.
Have enough liquidity during bear markets
Investing during the bear market is very important. We should have enough liquidity in hand to invest when the market conditions are bear. We know for a fact that some investments are very good no matter what. It is good to make some investments in coins that we are confident with. It is also the best time to do DCA on our purchases. This will reduce the bar and let us book profits sooner than expected and exit.
Another important thing we have to remember is to not catch a falling knife. We have to understand the market is bear and try doing a stop loss or stop investing further knowing that a particular stock or a coin is going to keep going down. We can either focus on other things or just pick a few confident things and keep our investment clear and solid. But the overall bear market is something that we shouldn't be missing.
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