Be[in]Crypto Video News Show: The Only Way to Survive a Bear Market

In this episode of BeInCrypto’s Video News Show, host Juliet Lima explains the three best strategies for surviving in a bear market.

When you hear the word bear market, what comes to mind? The standard definition of a bear market is a decline in asset prices of more than 20%. The good news is that bear markets are usually cyclical, so while they can last a few weeks, months, or in some cases years, they eventually come to an end.

To diversify

So far, in every crypto bear market, there have been coins that have taken a hit, some that have been completely destroyed, and some that have even seen some growth.

If you diversify your assets, you are more likely to minimize your losses and enjoy gains in growing markets. Diversifying your portfolio is a great way to spread risk instead of just owning one or two assets so that a major implosion in just one area isn’t a total loss.

In the world of crypto, there are an array of options. Investors can choose from stablecoins, large-cap market leaders, fast-growing new cryptos, DeFi-related coins and tokens,

and cryptos associated with the NFT market.

HODL

The next strategy is “hold on for life”. The psychological toll that a market downturn evokes can be grueling. The mind can get frantic, should I sell? Is it the bottom? Imagine if I really lost all that wealth?

But having the mental toughness not to sell is key. You have to endure the sharp price drops. The wild volatility that a bear market brings. You need HODL. Do not sell!

Bear markets typically last 18 months or less, so there is bound to be relief around the corner. Keep what you have and don’t play dangerous trading games trying to time the market. Especially if you have just entered space.

DAC

The purchase average may seem too basic a concept. Just buy a little over time, regardless of the current price. But simplicity pays off in the end.

When buying a little at a time on a regular basis, investors become much less emotionally invested than they spend larger sums sporadically. If a sharp price change occurs, there is much less psychological pressure to panic sell.

Over time, a dollar cost averaging strategy mitigates the volatility of buying at different price levels throughout the investment period. A key to the strategy is to make sure you buy the asset no matter what, even though it may feel like the money is wasted during a bear market by buying so low. But when that price starts to climb, the purchased crypto will turn out to be a steal.

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