3 ways to survive a bear market

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3 ways to survive a bear market

Many investors now have to adapt their behavior and strategy to the new bear market and arm themselves with patience. The question is what to do in a bear market and what steps to take? We bring you 3 ways to survive a bear market and all the mistakes you should avoid as traders and investors.

A bear market describes a market situation in financial markets where asset values, and thus market prices, fall sharply. The investment climate is extremely negative and most investors are selling their assets. Markets are driven by fear, not greed.

In classic financial markets, we usually talk about a bear market when prices fall by an average of 20% from the previous highest prices. In the crypto market, these percentage drops are much higher because cryptocurrencies are usually much more volatile than other assets in the financial markets.

What to do to survive the current market climate?

A bear market is always a challenge for most crypto investors. Be aware of the following facts: A bear market can last for several months or even 1-2 years. Therefore, it is necessary to adapt to the changed situation in the long term.
High profits and returns are highly unlikely in times like these.

If you are not lucky enough to invest in a new, upcoming project in time, your earnings from cryptocurrencies will very likely be limited.
Another bull market is almost certain to arrive. In 2-3 years, the cryptocurrencies you own or will own now could be worth a lot more.
However, there are some methods you can implement right now to successfully weather the next few months of market decline.

Do not sell the cryptocurrencies you have

The worst mistake you can make is selling some or all of the cryptocurrencies you own. This is usually the emotional reaction of inexperienced investors during a bear market. Investors often hoped for high profits in a bear market and then wanted to sell their cryptocurrencies.

Selling bitcoin now would be a big mistake. The next bull market is almost certainly coming.

Check out new upcoming projects

If you still want to bet on big profits, you should look at new projects and ICOs that can make big profits even in a bear market.

For this you need comprehensive knowledge, time to research, preferably good contacts and a pinch of luck. If you are hoping for high earnings, you should be patient and wait for the next bull market.

Expand your knowledge of cryptocurrencies

During a bear market, you have plenty of time to dig deeper.

In a bull market, many investors try to find the perfect time to buy or sell. They follow short-term price movements much more intensively, which is a much rarer case in a bear market. During bear market periods, you should expand your knowledge of cryptocurrencies.

First and foremost, look at the basics. On the Crobitcoin portal you will find great articles that you can use to refresh your knowledge. Exchange rate analysis, blockchain basics, knowledge about NFTs, crypto glossary, are just some of the topics you can learn more about now.

Accumulate "safe" cryptocurrencies

The prices of major cryptocurrencies such as Bitcoin, Ethereum, XRP and Cardano are currently quite low, which is bad for the current value of your investments. But this offers you a great opportunity to buy new cryptocurrencies.

The more you can buy at the moment, the more profit you can make in the next bull market. It is especially worthwhile to buy established, large cryptocurrencies, as they are extremely likely to increase in value in the next few years.

Should you invest in Bitcoin and other cryptocurrencies now?

If you're thinking long-term, investing in Bitcoin and other established cryptocurrencies is particularly profitable right now. Prices are relatively low and we can probably expect a bull market soon. If you go into your next investment with a long-term mindset, you could earn much more than expected in the next year.