When the bear market occurs, it is common to see people running to the hills in terror because the prices of many tokens fall rapidly. Some traders see it as an opportunity to buy because it is cheap, then sell later once the value increases.
There is hardly any market that can keep rising forever; sometimes, it resets itself, offering opportunities to those who can see it.
When signs of a crypto bear market unveil, below are actions to take to survive during this period.
- Follow the set-out plan
Have you ever planned to purchase crypto in the past if it falls below a specific price? Then, it’s a good idea to abide by that decision once the situation presents itself.
- Stake your tokens
Are you confused about what to do during a crypto bear market and feeling insecure? Staking is relatively safer than other income recurring methods. When staking, the person earns a recurring APY, with little or no risks of losing their crypto holdings. Bear in mind that some consensus mechanisms penalize validators who behave wrongly by slashing their stake. Those community members who delegate their tokens to them will also be penalized.
- Do not short the market
A trader may feel like shorting the market out of sentiments during a bear market. However, the falling price may make them think that this may be a good decision, which may not be accurate in many cases.
- Do your research
When the crypto market is bearish, do not follow everything others say. Instead, look at the fundamentals and do your research. You may spot a gold mine that has been oblivious to others.
Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total investment amount across periodic purchases of a target asset to reduce the impact of volatility on the overall purchase.