What Do You Consider Most In A Bear Market?
You cannot feel what it is like being in the water unless you get there. In a bull market, it seems very easy to make money on crypto. Just throw some money into crypto, you might get out of there with a profit. Shitcoins that have no reasonable reason to go up and be there in the first place occupy the space.
So what do you consider most in a bear market? Protecting your funds and crypto is the most important thing, especially in a bear market. Everything performs better in an uptrend market. When the market changes its direction, holding crypto that you don't intend to hold for the long term is the quickest way to lose your fund.
Even though you make a lot of money in a bull market, you might end up in a terrible situation in a bear market unless you sell and exit from the market. A bear market is a time to buy and accumulate crypto to grow your crypto portfolio. If you don't have funds to invest, you cannot take advantage of this situation.
Most of the time, we use the crypto exchange to buy and sell crypto. No matter how safe and secure the crypto exchange feels, you may not have any idea what could happen in a bear market. A good example is FTX. It is surprising and shocking to see what just happened and many people are unable to withdraw their crypto.
It is better to use DEX instead of CEX. If you buy crypto from a centralized exchange, you need to transfer that to your wallet where you hold the key. Otherwise, no matter whether you leave your crypto on the lending platforms like BlockFi or a crypto exchange like FTX, you may lose your crypto at any time.
You can find crypto that has the potential not only to survive in a bear market but also thrive in the next bull market. But when you take entry into a bear market, that's important. You may buy thinking that's the bottom, but the price keeps falling.
Don't invest everything to buy at a time. You can divide your capital into small portions and make investments based on your strategy. You need to follow your own path and learn by taking action.
So what do you consider most in a bear market? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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I would say, but it does depend on the market, that buying into the bear market is way more profitable than buying into the bull market. I think this applies more to the stock market right now than the crypto market since the crypto market really hasn't proven itself to really be valuable yet.
But if you are buying low on a valuable underlying asset, when the bull hits you will make far more money than if you simply rode the bull.
Of course, for this theory to hold true, you have to make sure you are buying into QUALITY assets.