Four Things To Do With Your Cryptocurrencies During Bear Market
A Bear market is a simple terminology that describes the downward crypto market trend. This is a situation where many crypto assets are dipping, and there is widespread fear. Investors have a pessimistic view of the markets and continue to sell, making the market dip further.
There is no exact or agreed-upon term for what a bear market is, but the rule of thumb is a fear greed index showing a 20% fear for a long period of time is what the majority would agree on. Apparently, all coins lose value during bear markets.
However, one Interesting fact about the crypto market is that there’s always money to be made in any market condition and investing in a Bear market is no exception. The current persistent bear market is not the time to ‘wait it out. If you do, you’ll be looking at a very long time horizon for getting back to evenness with your investments.
So the big question is this: what do you invest in when the bear keeps eating the good of the market? Here are four (4) things to engage in during a persistent bear market.
Buy the Dip with DCA
While the mantra “Buy the dip” is often overused, it is never out of fashion. Imagine Ethereum that used to trade at $3000, and you bought a whole bunch of it. Now envision a bear swooped in, and that same asset trades for $100. There’s literally nothing as sweet as buying crypto assets at throwaway prices. However, it’s important to build Discipline in the investment process.
It’s important to do your personal research and apply the Dollar Cost Averaging when considering buying the dip. Search for crypto projects that have a solid background and long-term goals. Use relevant indicators for the best entry point, and always consider diversifying your investments across thousands of cryptocurrencies.
Staking
With staking, you can earn free crypto tokens and cover up losses caused by the Bear Market. So, you can continue your earning streak with little profits by locking your cryptocurrency on a protocol for a certain period of time.
You can consider LBank Earn to stake your assets and earn up to 10% APR!
Consider Stablecoins
Stablecoins are one of the safe havens that offer inflation-beating returns during persistent bear markets. These coins have lower volatility compared to crypto assets like Bitcoin and Ethereum.
Typically, Stablecoins are digital assets pegged to underlying assets such as fiat currencies, including U.S. Dollars, Euros, Pounds etc. For example, USD Coin (USDC) is pegged to U.S. Dollars, and as such 1USDC equals $1.
LBank offers one of the easiest methods to swap your Bitcoin and Ethereum for stablecoins such as USDC, USDT etc. However, it’s important to note that stablecoins are not without risk — be cautious of this and risk what you can lose.
Scalp Trading
Scalp trading might be another option to turn to during the crypto market. The concept involves holding a position for a few minutes, unlike the usual buy and hold for several weeks or months. Given the high volátil of the crypto market, you can easily earn money in just a few minutes through scalp trading.
Interestingly, experienced and new traders can use scalp trading techniques to profit. Users can make money even during this bear market by leveraging LBank’s minimal trading fees coupled with a simple interface.
Wrapping Up
While the crypto bear market might be most crypto investors’ nightmare, it still comes with several benefits. With proper technical and fundamental market analysis, you can profit by scalping, buying the dip, converting your coins to stablecoins, and much more.
Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.
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