Surviving The Bear Market
The bear market is tricky, particularly for the newcomers. Some friends of mine entered the crypto juggernaut during the bull cycle in March, April 2021. Many of them have incurred a 50% loss as of now. I can see some of them panicking and regretting their decision. Know that you have not lost or gained anything till the time you cash out. This is the right time to further educate yourself. You need to have a visibility of exactly in which stage of the market cycle are you in currently. This will help you in better decision-making.
So, how am I surviving the crash? Well, I am having a good time. I see this phase as an opportunity.
Work Hard, Earn and Invest
I don’t usually put my base savings in crypto. I have made a profit from my initial investment and then had withdrawn the principal amount. Any additional investment that goes in, comes from the additional effort I put in. This also ensures that I earn this extra amount in crypto and I do not have to inject any fiat currency. Over time this process becomes organic. Work-to-invest is a policy that is highly impactful to minimize the risk and have maximum returns.
Not getting too much emotional
I do not sell when the market is down. Never! This is also because I do not invest in speculative coins and all the coins I own are based on strong fundamentals. I am confident that such coins will do well in the long run. I try to sell the short-term investments during the peak of Bull markets and get into stronger projects, anticipating a dip. Also, I convert to a stable coin to buy dips.
In this bear cycle, I did not convert much to USDT as I could not time the high properly. But with whatever I converted, I was able to buy coins at a 50% discount.
Taking a breather from doing too much crypto
I am consciously not doing too much crypto nowadays and only focusing on understanding the developments. This is the calm that helps me to learn without having the feel of FOMO. As crypto is a full-time 24 x 7 profession, bear markets are also the time where I can find the balance of my growth, which in turn, I will then try to maintain in the long run. This also helps to understand stretches and neutralize and then do newer things.
Learning new concepts
In continuation to the above, it is important to understand the new things happening in crypto, new projects getting a life, and new technological advancements. If you do the same thing repeatedly, it is very easy to get lost in a silo. Newer projects like Near Protocol excites me, they have started marketing themselves very well. HEN in Tezos looks like a very influential NFT platform, I did not even know that there is so much going on in Tezos. I am researching new Land-based games like Uplift World, Evolution Land, taking suggestions from your comments in my previous post. Algorand recently got a big grant to develop its ecosystem. Acala Network looks like a very advanced Defi Platform. All these topics help me to diversify, helping my core research in the long run. It improved breadth and quality.
Accumulating
I have also been accumulating coins I believe in and getting into newer projects. I am trying to get into new launches in the CoinList (no luck till now), trying to get more Gate Tokens to increase my Tier. I am also accumulating newer projects like Lukso, Darwinia, etc. I am also evolving my Kusama crowd loan strategy, trying to recycle my Kusama to get an entry to the next Parachains, also replicating and evolving the model for Polkadot parachains in the future.
All the above keeps me busy and diverts my mind for the market dump. It also helps me to gain confidence that I keep myself knowledgeable and feel confident that this is going to work out in the long run.
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Good article. This is a reminder to zoom out from the daily price action and think longer term at the macro level. Great advice to take back your initial investment once you have made a profit. So now you are only risking your gains.
A very nice perspective. Thanks to you, I learned very strategic moves, it seems to me that you are proceeding with really cautious and correct steps. Being aware of new developments allows us to have our own ideas and strategies on many issues and to predict the future. I agree with you. It is necessary to stay up to date and follow the news.
Thanks for the article it was very helpful.