A Bear Market is About Three Main Things
Even in crypto, these ring true
Welcome to another tough week for investors.
In case you missed it, Friday was especially rough as the S&P 500 dipped into bear market territory before a slight turn to the upside that allowed the index to end the day in the green. Didn’t matter—the damage is done.
So what are some navigation tactics for crypto investors?
Well— a bear market is about doing three basic things while you wait for the bull market to return. Do these, and you’ll position yourself for the upside. Remember, the bull market always comes around again, no matter how awful things get.
*To be clear, this is just my personal opinion.*
Survive
You can’t enjoy the coming bull market if this bear marked has wiped out all your money.
Make sure you keep some cash on the sidelines, and take profits when you can.
You want to outlast the legions of investors who will flee the market out of fear and desperation.
Consolidate
Bear markets are not the times for risky investments.
Consolidate positions into the strongest ones you have.
In bear market, less exposure can be more.
Accumulate
Fortunes are made in bear markets by slow and steady movements.
Buy positions when others are selling.
Search for investments that are oversold and undervalued.
Is this a perfect strategy?
No.
That’s the frustrating thing about investment pullbacks—there is often a lot of damage done in their wake. Still, these tactics can provide upside, and prepare you for the next epic run.
Just a few thoughts as we enter what may be our choppiest water yet.
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.