Financial Markets around the world face a bear cycle every now and then. generational wealth is born in the bear market. When sentiments are negative and things are going down, develop a growth mindset. Currently, we are seeing a rapid decline in crypto prices. In fact, the global markets are facing a recession. Although the crypto industry stands on its own, the global political and financial events do have their short-term impact.
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Situations of the Markets:
Bitcoin is trading below $20K. The overall market is bleeding with all the popular altcoins down as well. Recently, LUNA had an unprecedented fall you can check a video on LUNA/ Terra on our channel.
Rapid inflation is occurring globally and locally. The global stock market is down due to an ongoing war in Ukraine. Fuel prices are sky-high everywhere. In Pakistan also we are seeing an increased dollar rate which is bringing the economy down and there is panic in the market.
We are facing a bear cycle in the crypto market which is quite normal. Bull and Bear Cycles come and go. Here are the 5 things you can do to emerge successful from the Bear Cycle:
1. Do Not Get Manipulated
When there is a lot of fear in the market then there are certain people who will try to manipulate you. Usually, millionaires and billionaires try to instill fear in small investors. They will tell you how the market is dead and Bitcoin or such and such coin is never coming back to its original price. Inexperienced traders often sell at a loss when they hear such things.
Remember, for every seller, there is a buyer. Those buyers will take the coin at a lower price and make money when the bear market is over.
2. Take Interest in Good Projects
Bear Market is an opportunity to take interest in good projects. In the previous bull market, we saw many cryptocurrencies with no real utility come to the surface. These cryptocurrencies gained value merely based on speculation. Coins like Doge and Shiba had no use case still they saw a price hike of 100% within days after some influencers started discussing them on social.
However, things are different this time around. Crypto Market is getting mature and bad coin projects are taking a hit. So, if you want to emerge successfully out of this bear market then it is time to consider some good coins.
Generally, it is said that if a coin survives two bear cycles then it is considered safe. So far, only bitcoin and Ethereum have survived two bear market cycles. But we may see some other good projects emerge as well.
3. Hold and Accumulate
Many crypto buyers who bought crypto in the 2016-17 time period didn’t see their holdings go up until late 2020. So there was a gap of like 4 years. But crypto believers didn’t let their confidence waiver. During the last month, when bitcoin dipped below $30K, traders bought $2.5 Billion worth of BTC. This kind of accumulation is what generates wealth. In the last bear cycle, Ethereum went from $1,400 to $86. People who accumulated it at that point are the ones that emerged successfully out of the bear market.
4. Do Dollar-Cost Averaging
Dollar-Cost Averaging is a proven strategy of creating wealth by putting a small amount of currency in a coin over an extended period of time. This way you decrease exposure to the price volatility. However, You have to decide on the project carefully. One that has long-term potential. Put in some small fixed amount consistently, so that it is not a burden for you.
5. How Long Bear Market can last?
IF we look at the historical data, the bear market often lasts for 1.5 years. In comparison, the bull market lasts for 4 years. However, the number can be different based on market conditions. These numbers are based on past experience.
We are seeing an unprecedented kind of institutional investment in bitcoin. Merchants, corporations, and even governments are taking an interest in digital currency. so the future looks bright for bitcoin.