The market is still red and investors are contemplating future actions. Here are some methods that can be adopted to stay afloat during a bear market.
Don’t Stray From the Plan:
Often investors have plans to buy coins after they fall below a certain price but get spooked during a bear market and fail to stick to their original plans. Instead of faltering during market lows, traders should try and follow their initial plans.
Beware of Fraudulent Projects:
In a bear market, unknown coins that show momentary success usually sprout up like mushrooms after rain. But when investing, always look for a strong team and partners, value-added backers, strong liquidity, and top-tier exchange listings.
Know That Not Every Coin Will Crash:
Investors might find themselves in a dire state with coin after coin collapsing in a short period of time. And even though most crypto will fall in a bear market, it’s also true that not all coins plummet in value. Traders must stay on the lookout for these better-performing coins.
Get High Prized Coins at Discounts:
The dark cloud that is the bear market has a silver lining — the fact that many valuable coins dip in value. This is a great time to buy coins that previously seemed unattainable. A good example of this is when Bitcoin dropped value from $20,000 to $3000 in 2018.
Earn More From Idle Assets:
Another way to grow balance while waiting for the market to pick up again is through yield farming. By leveraging CeFi or DeFi platforms to generate a yield on assets, investors can significantly increase their earnings.
Remember to Short:
There are several opportunities to sell short during a bear market. Traders must make best use of such options in a declining market.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.
Continue reading on CoinQuora
Source: Cryptocurrency - investing.com
