The crypto market is cyclic. Like nature, it has its bad, worse, and better times. But hot emotions build up during a bearish market. And as an investor, it's normal to develop fear, uncertainty, and doubt (FUD).
Some people go as far as shit-posting about projects they've invested in to express disappointment. It's not unusual to see many people giving up. A typical example is the Luna crash which left some investors suicidal.
A crypto-bearish market is usually seasonal. This post provides actionable ways to beat it.
While this guide provides proven ways to strive in a crypto bearish market, we don't compel anyone to stick to an obvious lost course.
1. Study the Market
Playing the victim is one of the greatest mistakes you can make during a bearish market.
While the motivation to do anything is usually low whenever the market is unfavorable, taking your time to study the market helps you develop innovative investment strategies.
Studying the market also helps you understand the coins or projects with profitable prospects. It lets you avoid investing in shit coins with little or no potential to survive. A bearish market devalues projects. But if you find a coin or NFT project that keeps striving in stats during that season, it's probably your dose of hope.
2. Leverage the Bearish Market to Learn About Crypto
The bearish season is one of the best times to learn more about crypto, especially if you're still new to trading and investing.
You probably often hear traders advise people to buy more when the price is down and sell when it rises. Most crypto assets and coins drop in value during a bearish market. So buying a few tokens to test the deeper waters of crypto helps you minimize financial loss compared to when the market floor is high.
3. Identify Potential Projects
Many great projects stand the test of time, but a potential crypto rug or NFT project with a poor roadmap doesn't. A bearish market is one of the best times to identify a shitcoin or a bad NFT project. We've seen many rugs in 2022 alone. And most of them are a result of the unprecedented plummeting of the crypto market.
During a bearish market, take your time to study the market trend, discover upcoming projects, and learn about market analytic tools that help you make informed profitable financial decisions. At Moonly, for instance, we provide in-depth NFT analytics on upcoming and live NFT drops.
Ideally, if you notice that a project remains valuable even in a bearish market, it probably has growth potential and is worth a critical look. However, ensure you do your research.
4. Be Patient
Remember GameKyuubi's acronym? He agreed he wasn't a great trader, but he would HODL in the 2013 bearish market that saw Bitcoin plummeting down the hill.
Although some traders and investors don't subscribe to HODLing a coin or NFT due to personal preferences, HODLing a solid project isn't a bad idea. Try not to dispose that project or token off rapidly due to FUD.
We're not asking you to be a Moonboy, holding a project despite its obvious irreversible value loss. But taking your time to study a project's market trend, following its roadmap, and researching more about it will help you determine if it's a rug, a scam, or just another bad investment.
5. Accept the Reality
Accepting reality is often hard in times of trouble. But while solidly believing in your investments, brace yourself for unprecedented losses.
For instance, in one of the most emotional crashes in crypto history, reality forced itself down on many Luna investors earlier in 2022. One of the most depressing factors was that many found it hard to believe they were down to little or nothing from thousands or even millions of dollars.
Perhaps you just invested in a new project. And it irreversibly crashes abruptly. So you've suddenly lost your money. That's not a new thing.
Besides, the crypto business can be risky, especially for newly launched projects. One of the best ways to strive in a bearish market is to rethink and restrategize your business and investment tweaks.
6. Take a Break
A bearish market can be emotionally draining. Watching the market statistics plummet in real-time feels like watching your money melt away like wax in the fire.
If a project's market status affects your mental health, take a break from the stat. Those red lines don't do anyone any good. This might return sanity and help reduce or prevent depression. Although you might get tempted to hop back into the stats anytime soon, resist it if it weighs you down whenever you see it.
However, a break doesn't mean giving up on investing. It helps you recuperate and deal with the anxiety of losing money. Training your mind against the odds makes you a stronger investor. And you might be ready for a fresh start before you know it.
7. Buy More
Yes, you read that well. If you've eyed an unaffordable project during a bull market, a bear market might open your buying opportunity.
Here's the thing: the crypto market is volatile, and you can't tell where it's headed sometimes. But no matter how far it plunges into the drain, a great project often makes a strong comeback. Buy more of it when its down, it might be worth a fortune in a flash.
For instance, it can be safe to say the best time to invest in expensive NFT projects like Degods, y00ts, Cryptopunk, and Bore Ape Yacht Club BAYC is when Solana and Ethereum's prices are all time down. That's not financial advice, though.
Rounding up: Don't Give up Just Yet
The bearish market is unavoidable in the lifetime of a consistent crypto trader. However, whether you'll survive depends on how you handle the situation.
If you find yourself hung up in a bear market, don't beat yourself to it, and don't give up. You'll learn a few lessons from a bear market that can make you a better investor.