During a bear market, when upturns are slow, few and far between and it seems that you’re mostly in the red, it’s easy to give in to the panic and fear like many others out there. Yet, there are ways that investors can still tide over the bear market and even come out stronger – this is possible even in the volatile crypto space, where it seems that you wouldn’t know what’s coming next. Here are the three things you can do and principles to hold on to especially in a bear market that may help you survive and even thrive through it.
Benefit from dollar-cost averaging by investing consistently
During a bear market, you can see many tokens as being sold at a discount. This includes giants like Bitcoin and Ethereum that are likely to pick up when (and not if) the market eventually does pick up. In such a market, it would be wise to put aside a fixed amount of money to invest at regular intervals regardless of market conditions. This is likely to get you your cryptocurrencies at lower prices, and you’d likely profit once the market swings back. This specific strategy is called dollar-cost averaging, which can offer efficiency in a bear market. However, do not give in to greed or panic by buying or selling all you have; It is important to be prudent! This brings us to our next point…
Never invest more than you can lose
After hearing about the benefits of dollar-cost averaging, it can be tempting to purchase tokens in large quantities, even in quantities that are overly risky for you. You should always ensure that you have sufficient liquidity for your day-to-day, and never end up investing more than you would need in the short-term. After all, despite the potential to profit, crypto trading is still highly speculative and can be very volatile and uncertain.
Rebalance your portfolio; make sure your funds are in projects with a sound foundation
This is a strategic move that will ensure the strength of your portfolio, whether in having holding power in the bear market or bouncing back higher when the bull market inevitably comes. Apart from having investments outside of crypto (to ensure you aren’t putting all your eggs in one basket), you should also look to investing in sound projects. Some examples of these are Polygon (MATIC) and MetaPocket Digital Wallet (METAPK).
Polygon is a Layer 2 scaling solution that enables Ethereum smart contracts to be scaled up to millions of transactions per second, using various scaling techniques such as sharing to achieve scalability. The MATIC token is used to pay fees on the network and is currently selling relatively low, but with MATIC’s high-profile partnerships and the power it can bring to transactions in crypto, it’s likely to remain a strong token with its strong utility.
On the other hand, the MetaPocket Digital Wallet is the very first GameFi-optimized wallet, With the GameFi market steadily growing, we can expect to see this project stick around and grow even more, even if it’s a relatively slow season for all tokens now. With its inherent community aggregation features and inbuilt offerings that help with GameFi scaling, experience, and overall crypto earning (whether through the wallet, staking METAPK or making use of their bots), it’s definitely more than just a gimmick and offers true functionality.