The 5 strategies to face a crypto bear market

As you know, financial markets are cyclical. There are up times and down times, to put it simply. However, for crypto traders and investors, it is often the bear market that is the most feared.

What do we do or what should we do when the Bear Market is Coming….

Sometimes I feel like it's more difficult to keep calm in the face of the possibility of a new crypto Bear Market than in front of the emaciated zombies of Games of Thrones.

And yet, whether we like it or not, we will have to weather the storm, hoping to save your crypto as much as possible from the clutches of the big bad bear...The good news, we can earn money whatever the market. Then, you don't lose anything until you sell, as you know.

Before presenting the strategies to follow to not to find yourself completely stripped before the next Bull Market, The first thing to remember is that you are not alone in this...

According to the latest data shared by Intotheblock, 28% of bitcoin investors, more than 31% of ethereum investors and 87% of those who bet on Cardano are currently in the red.

Not really anything to rejoice about, of course… But like I told you A few weeks ago, we already went through this! The key is to start with…

1. Have a realistic vision and invest when you are ready

It's important in a bear market to see the long term. This is how you will not end up being cheated by the crypto bear market.

Remember that in a bear market, crypto prices are at their lowest. This means it's a good time to invest in bitcoin or in another crypto. The prices are naturally more attractive. That said, be careful to choose the right cryptos. For this, nothing is more useful than to make a good fundamental analysis.

This may seem obvious, but managing your emotions during bear markets is not as simple as it seems. More effective than yoga, I advise you to remember that fear and greed (or fear and greed for our Anglo-Saxon friends) are more than just feelings, but indicators that should guide you in your investments. And above all, prevent yourself from making sweeping judgments that could cost you dearly.

For many investors, the bear market it's also a good time to go shopping to put it in a trivial way.

Another way to stay on track without breaking your pants is to simply keep your eye on the horizon. Or to put it less poetically, to have a concrete, long-term plan. We cannot repeat it enough, the crypto market is very volatile.

Like anything active, it has ups and downs. Instead, consider it from a long-term perspective, keeping capital in reserve to survive the new crypto bear market that is coming. And above all, don't forget to keep your cool when the ugly bear comes scratching at your door.

2. Consider passive income methods like staking

It’s normal not to feel reassured in a crypto bear market context. No one likes to see the value of their assets melt away like snow in the sun. To cushion your losses, there are many profitable strategies. Starting with the staking, which essentially involves locking your crypto on a blockchain for a given period of time in exchange for passive income.

🤩 Staking may be the easiest way to increase the value of a portfolio over the long term. But above all to alleviate the pressure caused by value fluctuations, since the asset you stake continues to earn you tokens.

Most layer 1 protocols offer the possibility of staking their native token on the network in exchange for a yield. This is particularly the case of Solana (SUN)), Cardano (ADA), Polygon (MATIC) et Avalanches (AVAX).

There are different sites for easy staking. You can also do it directly on dedicated wallets depending on the cryptos of your choice. We personally do a lot of staking on DeFi protocols but we also use MyContainer. It is a site on which you can simply stake.

Staking on MyContainer

3. Lend your cryptos and generate passive income

In a bear market, we can also want everything like the staking, seek to win differently. For example, we can make cryptocurrency lending (loan). This is a popular method for making money relatively easily.

You can do this on CeFi with simple platforms like Youhodler ou Nexus For example. Simply deposit your crypto to receive your interest every week.

This is then a very good way to limit the "losses" in the bear market. It can also be a good option to choose to do it with stablecoins. Crypto stablecoins are indexed to Fiat currencies which are subject to inflation, of course. You nevertheless limit the volatility which can sometimes be fatal in a bear market.

Generate interest with Youhodler

4. DYOR and work b.tch!

Although we would all like (good) information to fall into our mouths (and for the moon boys to turn into Madame Irma), there is no real way to escape it. If you want to survive the crypto bear market, you're going to have to do your own research. These will not only allow you to put into perspective the massacre that is occurring before our amazed eyes. But also and above all to use the right indicators to find the best entry point.

Now that you know the basics ofa fundamental crypto analysis from baron (just that!), you will not only be able to select projects that are viable in the long term. But also predict the movements of an asset to predict trough times.

A popular method is to use the Relative Strength Index (RSI) indicator – a momentum oscillator characterized by a channel and a line that oscillates in and out of it.

There are two key elements to remember to use this tool properly:

Overbought: : When the indicator line crosses above the channel, the asset in question is considered “overbought” – in other words, overvalued. This usually signals that prices are about to fall.
Oversold : When the indicator line breaks out below the channel, the asset in question is considered “oversold” or undervalued. This usually signals that prices are about to rise.

5. Follow a DCA (Dollars Cost Average) strategy

Again, this is common sense. To limit your risks, and get out of the crypto bear market in one piece, It is crucial to diversify your investments. And not to bet on a single asset, at the risk of losing everything.

Just as it is almost impossible to accurately predict the bottom of a bear market, it is also impossible to know exactly which of the more than 17 cryptocurrencies in circulation will recover fastest or go “To The Moon”.

A good way to cover your back is to use the DCA strategy (For dollar-cost averaging) on a range of different assets. Basically, this involves dividing your reserve funds into smaller tranches and making multiple transactions over time.

Of course, this doesn't mean you can ignore proper due diligence…Before investing in a crypto, and with a view to surviving the crypto bear market, remember to analyze:

The previous absolute record for having a better idea of the potential of an asset;
Past performances (via TradingView, for example) to see how a crypto has recovered from a previous crash;
Announcing the future road map: a new update or new development in an asset's roadmap are good indicators of a speedy recovery!

I hope you feel better equipped to face the upcoming crypto bear market! Courage, or as a minister said that I don’t really hold in my heart…”It will be alright".

Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.

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