So it seems like an accepted part of cryptocurrency that there are bull markets and bear markets. The second one being a concern for any investor.
IE- imagine throwing a few hundred or thousand dollars into any one crypto and the next day a bear market hits making your investments go to half their USD value, with the added factor that you may need to wait months for it to be worth what you put into it.
All that said- what do you think future bear markets might look like? Would it be Bitcoin staying under 50 or 45k for a year straight or even going down to 30k? How about etherium and altcoins?
Also how do we prepare for one, IE being the end of the year is it more risky to throw down money into crypto now or does that not really matter?
Any insight/tips are appreciated.
Thanks!
Stocking up on assets during bears = major profits during bulls
For sure. With that in mind would it not make sense to wait for a bear market? I’d love to go all in whenever that may arrive next.
But what to do just before the bear is the question
One of the best ways of all to prepare is by having a responsible and well-researched strategy for what you want to invest in before you actually invest. Ask as many tough and essential questions as you need to ask. How long do you intend to hold something? If you intend to hold on a longer-term basis, why is now a better time to buy than in 6 months or a year? Is the coin really something viable? Will it still be here in a few years? Do I really want to hold this for half a decade? How many positions do I really need to take – why 2, for that matter why 5 when maybe 3 will do just fine? What would be a proper time to exit relative to initial investment? What would be a risky exit move?
Know full-well the risks to any particular coin, stock, bond, or Pokemon card as an investment before you buy it. If you have some income after bills and expenses – either a tiny bit or a lot – what portion of it would you be comfortable using to DCA? To ask the same question from a different perspective, how much money can you comfortably lose if all does not go to plan?
The significance of an investment plan, even if it is basic, can’t be emphasized enough. Investing can lead to a lot of negative psychological effects if it is done irresponsibly. This can be anything from checking the price of something every 20 minutes when you have no intention of selling to skipping out on the electric bill to buy high-risk alts to hyper-biased coin tribalism to impatiently selling the day before something pumps 300% and buying back in at the top. One of the benefits of infinite social media is the ability to pick up on a diverse array of market sentiment at any given point in time. In early 2018, a sizable number of people laughed at the idea that crypto would crash. They bought more. Then by the end of the year, even Bitcoin crashed 90%. Crypto was seen as a joke. Alts were dead. DCA’ing into ETH under $100 sounds like a genius move in hindsight now, but if you mentioned that you were doing it back then you had a pretty good chance of being met with derision or getting made fun of. This picture is a classic. Observe markets for long enough, and you should see that entire chart play out in reality.
In terms of higher risk alts, I recommend casually watching a few of them for a month or two and at best only investing a very small amount of your investment funds (5-10%) unless you have a strategy you’re convinced will see good returns.
Good luck.
Thanks for the tips! I do scrutinize cryptos I invest on. Personally I’m in a select number of them really where I invest most my crypto money into.
What I find tricky to guess is how ETH and Bitcoins price may evolve in the coming years. So far history seems to show them grow overtime. I guess time will tell though.
Cheers
It’ll be my first time for one. Can’t say I don’t really care what’s gonna happen. I’ll pack my bags. I’m in this for at least 7-9 more years.
Can’t lose with that kind of time frame.
I’ve gone through one before and i wish i would have done what you’re saying here! Some people learn from their own mistakes and others learn from other peoples mistake.
If history bears any resemblance to the future you’re looking at 70-80% drop from all time highs. Although I feel like the next bear market will be less steep as there are more actual use cases for crypto and it’s not purely speculative.
If we are truly midcycle loading up for a parabolic top we maybe ATH of say 150k and see BTC drop down to 50k. So if you are investing now I doubt you have much to worry about other than watching paper gains disappear.
Scary parts about bear market Is not that BTC or ETH may lose 50 to 70% of it’s current prices as we know they reclaim and shoot way high the next cycle. What’s scary is how many projects will simply die out. So many good projects. So many projects with potential. So many projects even in top 100 , 50! Some of our portfolio will fall and will never recover!
In general when encountering bears: It goes If it’s brown, lay down. If it’s black, fight back. If it’s white, goodnight
One can climb trees very well, the other can’t. One can run very fast, the other can’t. I guess being eaten alive by all of them (grizzly especially) is easy to remember.
I made sure to pick crypto i trust in, im in through and throughout bear
The simple answer is take profits when things are bullish to take advantage of bearish trends. Some people prefer to wait for reversals to dive in. Others will DCA while coins are cheap. It’s whatever you prefer.
Be prepared for BTC 15k. Unlikely at this stage, but not impossible. And then prepare for all other coins to drop 90% for 3 years.
How can we predict when it might happen? It’d be a bummer to see all my holdings drop for that long.
R u serious
To understand what you need to do in a bear market, first you need to understand what you want in a bear.
What colour — there are many kinds and they each have their pros and cons.
Where do you intend to keep your bear: Some bears prefer very cold climate, so you need to be prepared for that.
How much money you have — You need to ask yourself how much you are willing to spend on that bear. Don’t over do it. They all look tempting, but maybe you just need to browse the market for now.
Finally, where would you purchase a unicycle. Bears love to ride them, and not having one would be cruel.
I like panda bears 🐼 guess I may need to move to somewhere colder to raise them tho
Is shipping free?
It’s when the whales screaming HODL so nobody sells around the ATH’s, get mad and panic sell at 50k BTC.
Seriously though everyone has a different strategy. DCA is considered the safe longterm method. Bears don’t come too fast, you see a gradual staircase on the charts of the big coins, alts begin to purge about an extra 10% faster and memes often fall through the floor.
Some move into BTC, others move into a stable coin. I already triggered my limit sell of BTC at 64k, bought back at 46k. Been limit selling and buying these ath’s and increasing stacks all through the bull. Got a feeling we’ve begun to see the early steps down already.
Easy. If you think the line will go down, sell. If you think the line will go up, buy.
TBH, I am long term on my holdings. When it’s up and I need to take profits i will, but I don’t try to time sell orders to react to market predictions. If there’s a big dip, I try to DCA into the dip with available fiat.
Bottom line is: make a plan and stick to it. If you try to plan every day, it becomes very emotional and hard to think with a level head. Sometimes galaxy brain involves betting against what you want to do in the moment. Good luck!
Hear that. Thanks!
Buy projects you like, when they go on sale in the future, have cash set aside for it. Some exchanges offer generous APR on stablecoins so it never hurts to let some money sit on the side for a rainy day getting 10%
Personally I don’t see BTC going below 30k ever again. Maybe not even below 40k, just based on historical regression analysis and nothing else.
It’s harder to plan for this bear market I think, because the cycles seem to be lengthening. This bull run could last another full year (or more, or less). I for one have a price target in mind for BTC. At that target, I’m selling, and waiting until BTC comes back down to around current prices to buy back.
As Ben Cowen says: ‘A bull run can make you money. A bear run can make you rich’
To prepare for the bear market, you yell ‘omg this is the start of the bear market’ about once or twice a week.
After several months or up to a year, you’re bound to be right at one point. Then you can proudly post: ‘see guys, i told you so!’.
Bears are carnivorous by nature and savage in a throw down scenario. This doesn’t mean you can’t prepare ahead of time to properly handle one, should the opportunity presents itself. When a bear goes to market, most likely he has prepared by making a list of items he should pick up while at the market. At the top of his list – salmon and honey. What does this mean for the future? It means salmon and honey will reign supreme. Buy as much salmon, honey and bear repellant as possible and be ready. Bears can be beaten by humans. Stay strong.
Bullish on salmon and honey
Adult diapers, discount whiskey, subscription to the Vagtasitc Voyage. Ummm, somewhat loaded revolver….
Stocking up on assets during bears = major profits during bulls
For sure. With that in mind would it not make sense to wait for a bear market? I’d love to go all in whenever that may arrive next.
But what to do just before the bear is the question
One of the best ways of all to prepare is by having a responsible and well-researched strategy for what you want to invest in before you actually invest. Ask as many tough and essential questions as you need to ask. How long do you intend to hold something? If you intend to hold on a longer-term basis, why is now a better time to buy than in 6 months or a year? Is the coin really something viable? Will it still be here in a few years? Do I really want to hold this for half a decade? How many positions do I really need to take – why 2, for that matter why 5 when maybe 3 will do just fine? What would be a proper time to exit relative to initial investment? What would be a risky exit move?
Know full-well the risks to any particular coin, stock, bond, or Pokemon card as an investment before you buy it. If you have some income after bills and expenses – either a tiny bit or a lot – what portion of it would you be comfortable using to DCA? To ask the same question from a different perspective, how much money can you comfortably lose if all does not go to plan?
The significance of an investment plan, even if it is basic, can’t be emphasized enough. Investing can lead to a lot of negative psychological effects if it is done irresponsibly. This can be anything from checking the price of something every 20 minutes when you have no intention of selling to skipping out on the electric bill to buy high-risk alts to hyper-biased coin tribalism to impatiently selling the day before something pumps 300% and buying back in at the top. One of the benefits of infinite social media is the ability to pick up on a diverse array of market sentiment at any given point in time. In early 2018, a sizable number of people laughed at the idea that crypto would crash. They bought more. Then by the end of the year, even Bitcoin crashed 90%. Crypto was seen as a joke. Alts were dead. DCA’ing into ETH under $100 sounds like a genius move in hindsight now, but if you mentioned that you were doing it back then you had a pretty good chance of being met with derision or getting made fun of. This picture is a classic. Observe markets for long enough, and you should see that entire chart play out in reality.
In terms of higher risk alts, I recommend casually watching a few of them for a month or two and at best only investing a very small amount of your investment funds (5-10%) unless you have a strategy you’re convinced will see good returns.
Good luck.
Thanks for the tips! I do scrutinize cryptos I invest on. Personally I’m in a select number of them really where I invest most my crypto money into.
What I find tricky to guess is how ETH and Bitcoins price may evolve in the coming years. So far history seems to show them grow overtime. I guess time will tell though.
Cheers
It’ll be my first time for one. Can’t say I don’t really care what’s gonna happen. I’ll pack my bags. I’m in this for at least 7-9 more years.
Can’t lose with that kind of time frame.
I’ve gone through one before and i wish i would have done what you’re saying here! Some people learn from their own mistakes and others learn from other peoples mistake.
If history bears any resemblance to the future you’re looking at 70-80% drop from all time highs. Although I feel like the next bear market will be less steep as there are more actual use cases for crypto and it’s not purely speculative.
If we are truly midcycle loading up for a parabolic top we maybe ATH of say 150k and see BTC drop down to 50k. So if you are investing now I doubt you have much to worry about other than watching paper gains disappear.
Scary parts about bear market Is not that BTC or ETH may lose 50 to 70% of it’s current prices as we know they reclaim and shoot way high the next cycle. What’s scary is how many projects will simply die out. So many good projects. So many projects with potential. So many projects even in top 100 , 50! Some of our portfolio will fall and will never recover!
In general when encountering bears: It goes If it’s brown, lay down. If it’s black, fight back. If it’s white, goodnight
One can climb trees very well, the other can’t. One can run very fast, the other can’t. I guess being eaten alive by all of them (grizzly especially) is easy to remember.
I made sure to pick crypto i trust in, im in through and throughout bear
The simple answer is take profits when things are bullish to take advantage of bearish trends. Some people prefer to wait for reversals to dive in. Others will DCA while coins are cheap. It’s whatever you prefer.
Be prepared for BTC 15k. Unlikely at this stage, but not impossible. And then prepare for all other coins to drop 90% for 3 years.
How can we predict when it might happen? It’d be a bummer to see all my holdings drop for that long.
R u serious
To understand what you need to do in a bear market, first you need to understand what you want in a bear.
What colour — there are many kinds and they each have their pros and cons.
Where do you intend to keep your bear: Some bears prefer very cold climate, so you need to be prepared for that.
How much money you have — You need to ask yourself how much you are willing to spend on that bear. Don’t over do it. They all look tempting, but maybe you just need to browse the market for now.
Finally, where would you purchase a unicycle. Bears love to ride them, and not having one would be cruel.
I like panda bears 🐼 guess I may need to move to somewhere colder to raise them tho
Is shipping free?
It’s when the whales screaming HODL so nobody sells around the ATH’s, get mad and panic sell at 50k BTC.
Seriously though everyone has a different strategy. DCA is considered the safe longterm method. Bears don’t come too fast, you see a gradual staircase on the charts of the big coins, alts begin to purge about an extra 10% faster and memes often fall through the floor.
Some move into BTC, others move into a stable coin. I already triggered my limit sell of BTC at 64k, bought back at 46k. Been limit selling and buying these ath’s and increasing stacks all through the bull. Got a feeling we’ve begun to see the early steps down already.
Easy. If you think the line will go down, sell. If you think the line will go up, buy.
TBH, I am long term on my holdings. When it’s up and I need to take profits i will, but I don’t try to time sell orders to react to market predictions. If there’s a big dip, I try to DCA into the dip with available fiat.
Bottom line is: make a plan and stick to it. If you try to plan every day, it becomes very emotional and hard to think with a level head. Sometimes galaxy brain involves betting against what you want to do in the moment. Good luck!
Hear that. Thanks!
Buy projects you like, when they go on sale in the future, have cash set aside for it. Some exchanges offer generous APR on stablecoins so it never hurts to let some money sit on the side for a rainy day getting 10%
Personally I don’t see BTC going below 30k ever again. Maybe not even below 40k, just based on historical regression analysis and nothing else.
It’s harder to plan for this bear market I think, because the cycles seem to be lengthening. This bull run could last another full year (or more, or less). I for one have a price target in mind for BTC. At that target, I’m selling, and waiting until BTC comes back down to around current prices to buy back.
As Ben Cowen says: ‘A bull run can make you money. A bear run can make you rich’
To prepare for the bear market, you yell ‘omg this is the start of the bear market’ about once or twice a week.
After several months or up to a year, you’re bound to be right at one point. Then you can proudly post: ‘see guys, i told you so!’.
Bears are carnivorous by nature and savage in a throw down scenario. This doesn’t mean you can’t prepare ahead of time to properly handle one, should the opportunity presents itself. When a bear goes to market, most likely he has prepared by making a list of items he should pick up while at the market. At the top of his list – salmon and honey. What does this mean for the future? It means salmon and honey will reign supreme. Buy as much salmon, honey and bear repellant as possible and be ready. Bears can be beaten by humans. Stay strong.
Bullish on salmon and honey
Adult diapers, discount whiskey, subscription to the Vagtasitc Voyage. Ummm, somewhat loaded revolver….
If your time scale is 10+ years, there’s not much preparation needed. Just ride it out, sauerkraut.
DCA, crème brûlée.
have cash to buy during the bear market. thats basically all you need to do.
Prepare for a bear market by saving your fiat to buy the dip. Then HDOL and wait – but not a ‘few months’ as you say, but years.
Hold dear on life
BTC at $10k is bear market
STEP 1: Load up on sad memes STEP 2 : Post them during bear market STEP 3: Collects lots of moons STEP4: ??? STEP 5: Lambo
I am readying sa fiat to accumulate during the bear market.
You dca, stake and hold. No one can predict what is going to happen in the short term, but long term we are going to the moon
There are two ways of preparing for bear market in my opinion.
First you go full stables til the market is fully hopeless or you short either way you profit from the downtrend…Ive been in the market and it’s not something I look forward to.
Covert or hold staking coins and stable coins to earn interest
Let’s do this Bull market first. 🚀
Yeah it’s more risky ATM, and bottoms are around 23k for BTC (energy cost), none for ETH (while 500 to 1000 seems doable tbh). Every other stuff can disappear, I’d just trust stuff built on ETH2, cause defi will still run in Bear market, we gonna have a golden age for this. So GRT, Yearn, Uni… I don’t see this stuff disappear tbh.
We might already be in Bear market, we will know it when it will go lower. Or we aren’t and it will go up 😉
keep on hodl and fill my bags with discounts
Going for more asset when the market is down, and taking profits when the bull is around.