How can beginners survive their first bearish trend in the cryptocurrency market? Tips from seasoned investors
Today, the cost of Bitcoin has again fallen below 30 thousand dollars, while there are fewer and fewer signs on the crypto market by which one could judge the imminent rebound in the price of coins. In such a situation, a huge number of traders and investors become depressed, and this is a classic scenario before the next global bearish trend , that is, a protracted fall in the markets. However, it should not be associated only with losses, but rather the opposite: with proper preparation, huge benefits can be derived from this period of time. How exactly to do this was told by the “veterans” of the crypto community on Twitter.
Note that some representatives of the blockchain community really confirm the onset of the so-called bear market. Among them is the founder of Cardano , Charles Hoskinson, who admitted in the first half of May 2022 that the crypto niche had indeed moved into a similar trend. So it’s not worth hoping for a crazy growth of coins just like that. Here is a related article on the topic.
How to Survive a Cryptocurrency Crash
You can write a whole series of articles about a trader's action plan during a downtrend. Luckily, user Guy Swann has a great collection of tips for beginners on Twitter. Here are his recommendations.
- Buy Bitcoin, keep your private keys;
- ignore market prices and do not engage in "gambling" trading, that is, gambling;
- do not trade with leverage, find a job;
- regularly accumulate crypto and prepare for the collapse of the financial system;
- take care of your family, use your free time to learn something new.
It is important to note that the recommendation to accumulate Bitcoin, in principle, is also suitable for the most promising and well-known altcoins. At a minimum, experts suggest that popular alts like Ethereum, Solana and Avalanche will surely be able to survive even the longest bearish trend, as they have already proven their usefulness. Accordingly, in the case of such projects, the collapse period is only a profitable buying opportunity. But, again, in order to have money to buy coins, you need a source of their income, so working in a bear market is a must.
In general, the period of a bearish trend is a great opportunity for an investor to prepare as efficiently as possible for the next bull run. According to Cointelegraph sources , new promising projects that can bring dozens of X's are based just at the time of the general depression in the market and already by the time of its growth they occupy the first places in popularity. That is why during the fall of Bitcoin, you need to study the industry very actively and look for new promising projects.
But traders can improve their skills in analyzing cryptocurrency charts. True, as the user with the nickname 6529 on Twitter hints , you do not need to try to predict the direction of the market all the time. Instead, you should establish a stable source of income, control your emotions and learn new skills.
Your goal is to survive. Therefore, analyze your emotions, forget about the maximum of your portfolio, do not try to predict the behavior of the markets, consider various scenarios for the development of events, including “an even more significant collapse from here”, improve the flow of finances, increase the amount of knowledge, enjoy life and wait for 2030.
The year 2030 was mentioned here as a possible period of massive popularization of digital assets, which cannot be compared to what is happening today. According to the trader, if you can afford to hold on to investments until 2030, then you will definitely be fine.
Many Europeans have been following at least some of the above advice for quite some time now. According to a study by Kantar, Europeans are increasingly considering crypto as a tool for accumulating savings. Analysts conducted a survey of 3,000 respondents who trade in 14 markets in Europe, Asia and Latin America.
Fifty-five percent of European survey participants said they currently own cryptocurrencies. Moreover, 70 percent of them noted that the main function of the crypt is to use it for the needs of their family. In addition, the study also showed that 61 percent of respondents view cryptocurrencies as “a good way to diversify investments.”
Beyond these findings, the study mentions that three out of five European respondents reported a 50 percent increase in their crypto investments. Although this figure is not as significant as winning the lottery, the study notes that more than 80 percent of the transactions of the crypto holders surveyed are worth more than a thousand dollars.
We believe that the crypto can really become a profitable object of accumulation on a bearish trend. Given the potential for its growth, digital assets have every chance to show even greater returns in the new bull run. Therefore, the current market conditions are not the end of the world, but rather the opposite. And if used correctly, the potential benefits can be enormous.
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