In the long bear market, where is the end? In the current market situation, many people can no longer hold on. They face two choices: the first is to stop moving forward and withdraw from the cryptocurrency circle, and the second is to endure and wait for the next bull market to begin.
Only a small portion of people can survive in a bear market; the bull market is like a windfall where even pigs can fly, while the bear market is a battlefield where only the fittest survive. So how can one survive in a bear market?
Lock up, stay away from the cryptocurrency market, and return when the bull market comes again. This principle requires a high level of self-discipline; very few can truly ignore and refrain from checking. Those who can do this are not ordinary people.
Regular investment to reduce risk. Suitable for those who are investing small amounts initially and have stable personal income, with future returns expected not to be low.
Seize the opportunity to buy at the bottom. This also carries significant risks; it is easy for beginners to buy halfway up the mountain, turning short-term investments into long-term ones, and not everyone can do this well.
Short-term operations, high sell low buy. Risk rating five stars, greater than the fourth method. Those who excel in this method won't get trapped in a bear market.
Cut losses and stop loss, stay away from the cryptocurrency market, and do not look again. The downside of this principle is if you sell at the end of a bear market, followed immediately by a big bull market, you will regret it for a lifetime. To avoid lifelong regret, this option is not recommended.
How should we invest and trade in a bear market?
1: Adhere to a long-term investment plan that aligns with financial goals.
For investors, whether in a bear or bull market, it is important to stick to a long-term investment plan. During a bear market, there is a lot of pessimistic information online, but it is best to ignore this market noise and focus on the returns from long-term investments. Some short-term traders quickly change their investment strategies to protect their funds or increase returns, but the reality is, if you find yourself in a bear market, it may be too late to change your asset allocation.
2: Avoid timing the market for entry and exit.
Retail investors often make the mistake of trying to avoid the bear market by selling their positions. Exiting at highs and entering at lows seems simple, but it is not easy. Even if investors sell before a decline, they may not be able to catch the right moment to re-enter, as markets often turn sharply upward when they are least favored. Historically, general investors tend to exit during bear markets, preventing them from maximizing asset returns.
3: Never try to guess the top or bottom.
In a bear market, investors often want to sell all at once, but actually, selling in batches may be a better choice. Don't try to time your entry and exit; on average, using a cost-averaging strategy (whether buying or selling) is more suitable.
4: Accumulate coins.
Regular investment in accumulating coins. Most chips in the market are very cheap; accumulating these cheap chips during a bear market is the key to making profits in the next bull market.
5: Strengthen theoretical learning and explore potential coins.
Learning is essential for continuous improvement; this field is constantly evolving with projects emerging and technology updating. If you do not learn, you will be eliminated. During this bear market, strive to learn and accumulate knowledge, as it will be your asset for future battles.