The cryptocurrency market has been in a terrible state recently. Many people say that this week is the worst market in history, but I think it’s not the bottom yet!
Except for Bitcoin, other currencies may continue to fall. The bear market is really too torturous. Not only will you lose money, but your mentality will also be easily broken. If you are not prepared, you will really be tortured by the market and doubt your life.
$BTC Today let’s talk about how to survive in a bear market and even prepare for the future bull market.
How scary is a bear market?
The most brutal part of a bear market is not the decline, but the endless suffering. You thought you had bought at the bottom, but ended up buying halfway up the mountain; you thought you could handle it, but ended up losing your mind. Especially for those who play with high leverage, one fluctuation will directly return to zero. So a bear market not only tests your wallet, but also your psychological endurance. Many people do not lose to the market, but to themselves.
I have seen too many people who were full of energy during the bull market and thought they were the "Buffett of the cryptocurrency world", but when the bear market came, they lost all their capital. What's worse is that some people borrowed money or used leverage, and ended up being heavily in debt, even having trouble making a living. So, the bear market is really no joke, it will cause a double blow to your assets and psychology.
Why can Bitcoin hold up?
In the bear market, although Bitcoin also fell, it was much stronger than other coins. After all, it is the "big brother" in the currency circle, with strong consensus and wide application, and everyone recognizes it. And what about those altcoins? They were hyped up in the bull market, but when the bear market came, they fell so much that even their mothers could not recognize them. So if you have a lot of altcoins in your hands, you really have to be careful, because they may continue to fall.
The reason why Bitcoin can hold up is that it has a stronger consensus and a wider range of application scenarios. Whether as "digital gold" or a payment tool, Bitcoin's position is difficult to shake. As for other currencies, especially those altcoins that rely on hype to rise, their value will evaporate quickly once the market sentiment turns cold. Therefore, if you have altcoins in your hands, it is best to re-evaluate their long-term value.
Passive income is a life saver
What is the most important thing in a bear market? Survive! You have to find a way to get some passive income, otherwise you really can't survive. Whether it is staking, lending, doing some dividend projects, or even doing some part-time jobs, as long as it can bring you cash flow, it is good. With passive income, at least you don't have to sell at the lowest point of the market, and you can hold on until the market picks up.
The significance of passive income is that it allows you to earn money even when the market is down. For example, you can invest part of your funds in some stable staking projects to earn interest; or participate in liquidity mining on some DeFi platforms. Although the returns may not be as high as in the bull market, it can at least help you relieve financial pressure. If you have skills, you can also consider doing some part-time jobs, such as writing articles, doing design, programming, etc., which can not only increase income but also improve yourself.
How to survive a bear market?
Don’t bet all your money on one coin
Diversification is the most basic way to reduce risk. Don't put all your money into one coin, especially those high-risk altcoins. You can allocate funds to mainstream coins such as Bitcoin and Ethereum, as well as some projects that you think have potential.
Don't be carried away by emotions
When the market falls, you panic, and when it rises, you chase it. This is the typical operation of leeks. Be calm and don't be impulsive. The most taboo in a bear market is emotional operation, such as rushing to sell when you see the price of the currency fall, or thinking that the bull market is coming when you see a little rebound. Remember, the bear market is a long-term process, don't be confused by short-term fluctuations.
Learn more
A bear market is a good time to learn. In a bull market, everyone is busy making money and has no time to learn; in a bear market, you can calm down and study blockchain technology, analyze projects, and understand market rules. In this way, when the bull market comes, you will be more confident to seize opportunities.
Keep some cash
You need to have some cash in hand, otherwise you will miss the opportunity when it comes. In a bear market, the prices of many high-quality assets will be seriously undervalued. If you have cash in hand, you can buy at a low price. So, don't invest all your money, keep some cash for emergencies.
Bear market is also an opportunity
Although the bear market is painful, it is also an opportunity. In history, every bear market is followed by a bull market. Those who can survive it will make a fortune in the end. So don't just look at the miserable situation in front of you, take a long-term view, be prepared, and when the bull market comes, you will be the winner.
The bear market is a reshuffle process, which will eliminate unreliable projects and investors, leaving truly valuable assets and players. If you can persist in the bear market and deploy high-quality assets at low levels, then when the bull market comes, your returns will be very considerable.
Final words
Bear markets are tough, but they are not the end of the world. As long as you are calm and prepared, you can survive. Remember, survival is the most important thing! Don't be defeated by the market. If you can survive the bull market, you will be the one who has the last laugh.
The cryptocurrency world is a place full of opportunities and risks, and the bear market is only a part of it. As long as you can face the market rationally, manage risks well, and continue to learn and improve yourself, you will be able to survive in the cryptocurrency world and even succeed. Come on, people in the cryptocurrency world! The bear market will eventually pass, and the bull market will eventually come. As long as you stick to it, you will definitely see the light at the end of the tunnel!
