As a crypto trader, the bear season is something you acknowledge that will happen. But you are not always prepared for it. Often, crypto traders — like yourself — have this profit fantasy of wanting the bull market to occur across the entire yearly market cycle. But that can’t always be possible. The bear market must occur to balance the equivalence within the market.
Meanwhile, traders are more anxious about the new developments in the crypto space during this time. They are constantly married to their phone like the Titanic Love and digest more information than always. That’s because you want to ascertain if the bear cycle will end quickly or be around for more time.
You are obsessed with your phone, laptops and other devices like tabs during this time. You constantly focus on crypto prices and think about trading during this season. While all these may look, they are not productive actions during the bear market. You often make poor decisions based on your emotions, which might put your mental health and financial status at risk.
To avoid the mental stress associated with crypto winter, we compiled a list of things you can do to survive the bear season while you wait for the pump. Let’s dig right into it.
9 Tips that Will Help You Survive the Crypto Slide
- Don’t track your portfolio!
Understandably, you are glued to your devices tracking your portfolio during the bull run. Everyone wants to make profits and inflate the size of their portfolio. You want to profit more from coins like Bitcoin, Ethereum, Litecoin, or AABBG. This addiction is valid and might crawl in during the bear season. But you must avoid it by all means. Stay away from your tracking apps and stop stalking your portfolio.
Do something more interesting like having a quiet time for yourself or travel across the city. Otherwise, you might be depressed from constantly checking your portfolio during this season. Some traders go as far as deleting those tracking apps during this time.
2. Don’t get chopped
As an experienced trader, one thing you want to avoid is being chopped within the market. Often, newbie traders fall prey to this because they don’t quickly recognize the trap. The bear season has proven to be unfriendly to long and short biases. Shorts will get liquidated when the price reaches a particular peak, and longs will liquidate when the price reaches another rock bottom. This becomes recycled. And you should avoid trading during this time.
3. Build quality relationships
Consistent trading during the bull run can make you stay away from your family, friends, associates, and colleagues. But the bear market allows you to spend quality time with your family and friends. Time to bond with them, connect with them, and feel alive amidst people that love you genuinely. This enhances your mental health while trying to manage the situation during this phase.
4. Double-check your investment purpose
Most times, people make the investment mistake of throwing their money into something because people are making noise about the rewards they earn from it. This can tempt you not to conduct due diligence to understand if you truly need to invest in such a venture. The same applies to cryptocurrency. One marketing trick marketers use to persuade individuals to venture into crypto is the double profit.
But not many do mention the volatility attached to it. So, you might be doing yourself a disservice if you invest in crypto because you hope for an increase in price the next day. What happens to you if the price crashes the next day instead?
On the other hand, staying calm during the market crash will be easier when you invest in cryptocurrencies because you understand how they work and why you are edging them over other money forms. Likewise, you are leveraging cryptos ahead of different forms of assets.
5. Don’t use leveraged trading
During the bearish crypto movement, crypto prices vary across the market, and the expected values are usually lower for leveraged trading. As a result, there is a net loss that sucks out portfolios. Thus, don’t use leveraged trading during this time.
6. Conduct research
If you want to invest in sustainable crypto projects that have the potential to do great over the years, the bear market will give you an insight into that. It is the time when there is little to no noise, and crypto startups and investors have the entire time to work on something meaningful. Also, this is a time to know how proactive a crypto community is and seek answers to your questions before entrusting your money with a crypto project.
7. Go physical
When you are healthy, you can do all things. Let the bear market handle itself. But are you physically prepared for the next bull run? If you answer no, it is high time you returned to the gym. On the other hand, you might pick up a new physical activity that will keep you in shape. Say, cycling. Above all, you want your body and mind to synchronize for the next bull run.
8. Know that you are not alone
You might want to think that you are alone during the bear season. No, you are not. The bear movement is like an Australian Wildfire chasing landowners away from their territories. It spreads quickly, and everyone feels the burn. So, take comfort in that and be open to optimism because the market will pull up again.
9. Have a buying strategy
You are sometimes convinced to invest your money in crypto despite the price crash. This decision might result from in-depth research and the desire to leverage crypto as an investment tool for portfolio diversification. However, you must have an investment strategy during a bear market. Often, financial experts recommend dollar cost averaging.
It can be an effective strategy because it allows you to purchase a number of a particular cryptocurrency at an exact price across different intervals. And this goes on until you exhaust your investment capital. However, this is not financial advice because there is no assurance about the increase in the price of crypto. But it can be a good strategy when you are in it for a long-term purpose.
What Are You Waiting For?
Get to work now and maximize those tips during this bear market. You want to prepare for the next bull run and be agile enough to bag all your profits.
If you are waiting for technical or fundamental advice regarding crypto trading, you’ve not understood the entire article. Go back and read again. The purpose is to make you unplug from your devices, and maintain good health and mental capacity to perform well when the next bull run hits.
