How To Face The Bear Market?
The Bitcoin price is falling, and this leading coin is entailing other cryptocurrencies. After quite a long period of prosperity, once again our industry faces the bear market.
In that situation, we wonder what causes a downward trend. This time, it is likely to be connected with the situation in China, and its policy towards the Bitcoin. But as usual, we can’t know that for sure.
However, much more important is the question how the bear market will affect our investments. Should we sell our assets right now, or wait for the eventual price recovery? We have dealt with this dilemma many times before, and this time there is no sure solution either. But some significant approaches can be taken. Check our summary of the most prevalent attitudes of traders during the bear market!
We all know that guy. He begins his bear adventure by posting the famous roller coaster meme on Reddit and starts complaining about the incoming disaster. Panic seller faces the common social anxiety known as “fear of missing out,” which is why he is constantly trying to capture the perfect moment to sell his assets at the highest price..
Whenever the price starts falling instead of continuing to rise, panic sellers immediately start getting rid of their coins. Unfortunately for them, it is usually too late, and these transactions have not managed to enrich the market trend. Unsuccessful investment lead them to spill their anger and frustration on forums.
Such approach, when panic traders hold their assets for too long, leads them to the vicious circle. And when the bear market comes back, they again regret missing the opportunity.
They remain untouched by the red charts of the bear market. Experienced hodlers have already seen many downward trends during their long careers in the cryptocurrency industry. In fact, some of them have been standing with Bitcoin almost from the very first days.
During the bear market, they silently watch the market. Some actively comment on the situation, how their strategy is superior to the panic of investors who regret that they missed the perfect time to sell. Such a concept doesn’t exist for hodlers since they’re simply keeping their assets without even thinking about selling them out.
But what’s their purpose? Some hodlers are supporters of the idea of global adoption, and they believe that keeping their coins contributes to that goal. Others are continually waiting for the best opportunity to sell bitcoins at the highest possible stake. However, this situation may never come, since hodlers always wait for more.
Probably the most clever one among these three. For a cunning trader, the bear market is nothing more but a chance to increase trading profits. He follows the simple principle “buy Bitcoin when the price is low…” and invests in the digital assets when their value is lower than usual. It is a perfect moment to invest in the cryptocurrency market since the price is going to recover in the near future.
After that moment has come, cunning traders are selling assets bought during the bear market. They don’t repeat the mistakes of panic sellers who are waiting for a better opportunity. Such traders also don’t want to get stuck with the coins they hold, just like hodlers do.
And even when they didn’t manage to sell bitcoins at the highest price, they are going to invest anyway. They simply know that the bear market is an excellent time to get bitcoin for the smallest possible price, and they are sure that their investment will see agreat return.
Why is the price likely to recover?
Although all three of the traders described above are different, they all need to adjust to prevailing trends in the cryptocurrency industry. A bear market is an inevitable part of it, and we can’t avoid this situation. But how can one be sure that the Bitcoin will recover after loses? It all boils down to a pattern that has always referred to the crypto world (and other speculative markets as well).
High capitalization and devoted community ensure its survival even during hard times. Whenever the cryptocurrency market is entering the bear market, those factors keep Bitcoin from falling completely. And whenever the situation calms down a little bit, investors who have decided to use a downward trend are the most pleased with the benefits of their wise move.
Of course, we do not urge you to use one particular tactic. All three of them might be the right choice for some specific situations. However, the bear market is an excellent opportunity for traders who would rather act than wait. If you are such a person too, it might be a good time for you. But you need to hurry – a downward trend won’t last forever! If you want to use this opportunity, you’d better invest as quickly as possible. It’s wise to use exchange with quick transactions, like CoinDeal for example. Plenty of available payment methods will give you the necessary flexibility during a bear market.
No matter which type of trader you are, you shouldn’t be worried about the market situation. As Bitcoin has proved many times before, it can manage pretty well with downward trends and falling prices. It will be fine anyway. The question is – will you use the bear market opportunity for your benefit?
If you want to comment this article, visit our Blockchain24.co forum!
The blockchain24.co site shall not be held responsible for any consequences resulting from the use of data contained in the pages of the site.