Cryptocurrency prices have fallen, some projects have gone bust, and we’re officially in a bear market.
If you’ve been in crypto for a while, you’ve seen this happen before.
If you’re new to crypto or investing in general, a bear market occurs when a market experiences prolonged price declines due to overall economic conditions.
Here’s our top tips to thrive during this period and best position yourself for the next market run.
1) Determine your strategy
“Fail to plan, plan to fail.” This wisdom holds especially true in the volatile world of crypto.
And deciding to dump your life savings on a token that your friend said is set to rocket in price isn’t the type of “strategy” we’re talking about.
So, are you Dollar-Cost-Averaging? HODLing? If you’re day trading, consider what “edge” you might have.
Whatever it is, having a solid plan and sticking to it is a great way to set yourself up for success.
2) Remember that market cycles are natural
Cycles happen across all aspects of life, and crypto is no different. They rise, peak, fall, and the process repeats itself.
The key is to expect this and not fight the cycle. It’s not a bull market anymore.
If you’re newer to crypto, you may be surprised by how deep and quick the drawdowns can occur. Take a long term time horizon and recognize what part of the cycle we’re in.
Would you have been excited to buy at these prices when crypto was two or three times as high a year or more ago?
3) Use the down market to upskill
With new technologies and projects emerging all the time in crypto, it can be tough to keep up.
While the market is slower, why not delve into the inner workings of DeFi or go back to basics with the Blockchain.com Podcast Crypto Basics series
Remember, knowledge is power! And adding skills might give you the edge you need to approach the market with fresh eyes.
4) Tune out and turn off
With all the opinions online, investing in crypto can feel high pressure.
You might see a tweet suggesting you “buy the dip,” a Reddit thread explaining why you should cash out immediately, or a YouTube video showing you a “perfect” trade — all within a few minutes of each other.
Our brains weren’t built for this ocean of information.
So as helpful as crypto Twitter can be, it’s important to know when to shut out outside voices and make your own decisions.
If you’re acting on something you’ve read online, make sure it aligns with your own personal circumstances and finances.
We’re still in the early innings of this technology. Who knows what exciting use-cases will emerge or which projects will thrive during this time?
Until then, take comfort in knowing that crypto has been through difficult times before and has better days ahead!
If you haven’t already, sign up for a Blockchain.com Wallet and get started today.
The information contained herein is informational only and does not constitute investment, accounting, financial, legal, or tax advice. Accordingly, you should consult with your own attorney, financial advisor, tax advisor or accountant as to legal, financial, tax, accounting and related matters