Bear Market Crypto Trading Guide 2022
Stuck in the crypto bear market like many Bitcoin traders? Read our guide for an overview of the best ways to win in the bear crypto market.
How to Win Big in a Bear Crypto Market
Many agree the real challenge for crypto traders is surviving the bear market. As Game of Thrones prophesized, winter came. The prices are reporting lows, but instead of finding a new hobby like fishing or hitting the gym, there may be ways to go through this.
Making money during a crypto bear market is not impossible, although it takes some manoeuvring. Our guide offers a bag of tricks you can turn to during unfavourable periods like the crypto bear market 2022.
People take on different stances when facing the winter – some rejoice at the opportunity to buy the dip while others stress out due to falling crypto prices. The crypto market offers different profit routes, motivating you to become a better investor with each challenge. In any case, the
key is to remain calm and objective and keep believing in crypto’s long-term success.
Crypto Terms Explained: Bulls, Bears, and the Winter Blues
Before we move on to concrete tactics and profit-generating systems, let’s look at the terminology, as not all who have dipped their toe in the crypto pond are familiar with it.
For one, bear is a term used in the crypto market to signify an investor with a pessimistic view of the market’s prospects. The bears expect coin prices to drop, and they can spread their unenthusiastic crypto forecasts over a period of a who knows how long.
In addition, a bear market in the crypto world represents a period of drought. It is a time when revenue pours out of the market and asset values are significantly lower than anticipated. So naturally, investors dread such prolonged periods of asset price drops because their portfolios are devalued by the day.
Opposing the bearish period, the bull market is defined by confident investors who believe in the price increase, not just short-term, but continue as a prolonged uptrend. As a result, traders usually have no trouble navigating the bull market. On the other hand, it is more difficult to plan your investments in a bear market with assets shedding value rapidly and, overall, the prices are even more volatile than usual.
Finally, we have the crypto winter. It is simply another name for a long bearish period with steep price drops and a spreading winter blues across the trading community. Interestingly, Bitcoin price movements are usually good indicators of incoming crypto winter. It may be wise to keep that in mind when looking at crypto bear market predictions.
Overcome the Bitcoin Bear Market with These Strategies
No need to brainstorm new approaches when experts out there devise clever plans and share them with the world. Bear market crypto strategies are already known - you simply need to reach out and grab them. We’ve taken the time to compile the most interesting ways to emerge victorious when crypto prices are in the red.
The trends are similar to the trading tactics used in the stock market or on fiat currency financial exchanges. Therefore, you won’t need to read guidebooks and study trading 101 to find the most convenient way to profit in the bear market. Strap in and prepare to choose your crypto bear market strategy.
Look Into Staking or Yield Farming
It may be a good idea to think of a way of earning passive income when your crypto stash starts leaking. Staking and yield farming are the two most common methods of making passive returns. They require little effort and barely have any downsides.
To benefit from staking, you just need to find a good staking program and lock away your coins on a PoS blockchain for a while so as to receive rewards. Yield farming is another option that can bring you interest rates for letting the platform borrow your assets.
2. Buy the Dip, But Don’t Attempt to Time the Bottom
Everyone knows it’s good to buy the dip. What does that mean? It means buying when the prices are low. There is no simpler strategy. However, it should be implemented cautiously because it is extremely difficult to predict when the prices are going to hit bottom. You want them to go lower and lower, but there is no way of knowing whether an unpredictable price jump might occur next week, spoiling your intent.
Even if your gut feeling tells you the bottom is around the corner, don’t listen to it and stop chasing the elusive bottom. Instead, buy low enough and hold until the next bull season.
3. Short Selling George Soros-Style
The bear market opens up the short selling window. If you don’t know what short selling is, it is a strategy that relies on selling an asset and waiting for its price to drop. Then, you buy it back, keeping the price difference and the asset itself.
The most famous example of a successful short selling investment plan is the George Soros pound venture in 1992. His fund bought every pound it could get, then sold it back to the Bank of England, which lowered its value and brought the mogul a massive profit in the price difference.
4. Be Active in the Crypto Community
Lastly, crypto price movements should keep you on your feet, always ready to jump and seize the next favourable opportunity. The best way to achieve this is to stay active in the community by building your skills and networking with like-minded people.
Follow the news, stay informed, watch free videos on crypto developments and use accessible online tools to get your hands on bounty programs and similar campaigns.
Final Thoughts
Bear market periods may be desperate times, but they don’t call for desperate measures yet. There are plenty of alternatives that provide security and revenue during a slow season.
Occasional losses are to be expected when you’re in the trading world, and that’s something you need to make peace with. However, following the strategies mentioned above, you can significantly reduce the chance of becoming bear crypto market prey.
