The Crypto space is truly a brutal and unforgiven place to be and at the same time can equally be a Paradise on earth. Just like the earth and every thing on it is bipolar eg white & black,cold&worm,good&bad,so also is the case with Cryptocurrency. In the world of Crypto, we also have two scenarios that can play out at anytime which is the Bull and the Bear market.
The bull market
This is a case where most of the Crypto assets begins to show massive uptrend in price due to consistent high demand by investors. This can go on for days or maybe weeks before the coin or token reach its peak price and then begins to fall back down.we can also refer to this peak price as a coins All time High(ATH).
The Bear market
This is the reverse of Bull market.
This occurs mostly when investors are not confident with their investment or are scared of what the future holds for their digital asset investment maybe due to one factor or another (FUD) which might make most of them to want to bail out in a panic pattern,which will in turn make the price of the coin or token see a plumet in its price for weeks or even months unend .
Now what should you do in a Bear Market situation?
In the Crypto space, every one seems to be an expert and every one also seems to have an opinion of how they feel things should be done.
But the truth is that there are basic principals to observe and follow if you wish to succeeded in this space and become a fulfilled investor.These principles are very basic but new and inexperienced investors seem not to get a grip of it early enough which is why most of them get burnt or rekt by the market.
During a Crypto bear market, these are the basic principals to follow to avoid getting Rekt or badly burned by the market.
1: Hodl your position: this point can't be over emphasized. No matter how bad people FUD the coin or token you are invested in during its downtime, always remember that every coin or token has its time for a bull run. No Coin as long as its not a scam or a ponzi scheme,stays in a Bear market forever.
Selling your position just because the coin your invested in is experiencing a bear market is a sure way to loose money and also frustrate yourself out of the market.
2:FOMO during the Bears and FUD during the Bulls: This is an experience I got from the market through the hard way. and since I have come to learn about this particular principle, the ride has been smooth for me in the market.
Many investors tend to FOMO(fear of missing out) during a Bull run thereby buying at an all-time high price.
However when the price begins to plumet,they tend to freak out and panic sell thereby putting themselves in a loss and the cycle can continue for a couple of times until the investor gets totally Rekt.
To avoid this as an investor you need to always study the chart and be cautious not to chase the green candles cos you will probably end up with the red ones.However, if you are smart enough to accumulate during the Bear market, only then would you be rewarded with the life refreshing candles of the Bull😀😀 .
3:Quit checking Block folio every 5mins: this is one of the major reasons why people panic sell during a bear market but yet most don't know it.
Checking up on your investment every now and then during a bear market will only help add salt to injury as its emotionally draining to watch your investment plument to up to 20% a day.
most can't just handle the emotional strain and they end up panic selling in a bid to bail out by cutting their losses.
However, the funny part is that you will get more miserable and depressed after selling of your position and you start witnessing your former investment start its own bull run😨😭.
Nothing can be as heart breaking as that 😂😂
And believe me am talking from experience.
4:Stop seeking advice from social media: This is another lesson I learnt the hard way ,after getting burnt bardly by the brutal unforgiven market. You have to understand that what you are going into is an investment and a long term one at that .
You don't gamble when making an investment, you research then you invest.
And this is where many people get it wrong. Its so pathetic that most investors don't conduct enough research before investing in a coin which is why during a bear market, they go about social media seeking opinion of everyone on their investment and the consequences is that at the end of the day you get fed with so many garbage that you willingly shoot your self in the leg by selling off your position at a loss .
I hope this points of mine has helped you in making an informed decision on how to handle your investment during a brutal bear market like this.
