Crypto market is all red, what to do in this bear market?
Today morning I woke up to see the crypto market bleed. It was quite sad. Yesterday I saw some cryptocurrencies at a pretty decent price and I should have sold them to get some liquidity. Something made me feel that this dip was coming all along but I have no big regrets. I did make use of this opportunity which is what I'm going to be sharing in this article.
Nearly a month back during another dip, I bought some Rune and DOT coins. The price of the DOT coin always surprises me and it gives a good trading opportunity. I have done some swing trades in the last year considering the price of DOT coin going up and down. It appears that 50$ is the all-time High for DOT and I was fortunate to purchase some when the price was around 5$ and 10$. I have a decent collection of DOT coins. I'm going to be holding them only for the long term. My target for DOT is 100 dollars but I would still do some swing trades whenever possible.
Bear markets are good
A dip in the market for whatever reason is always good. If we have enough funds to invest, this would be the right time to invest. It is not very easy to predict the bear market. Sometimes there will be a short dip and sometimes there will be a dip that goes on and on for days together. There have been days where the market will not heal back at all. There is a high risk involved here but still, if it works out well, bear markets are good.
Yesterday I did a good trade. DOT price was around 30$ and I sold some of my DOT tokens. The intention was to book some profit and wait for the next dip to do another swing trade. Though I made only 50$ from that, it was okay. Today to my surprise DOT price reached 25$ and I was fortunate to purchase some DOT tokens at 26$. I will now again wait for the price to hit 30 dollars and sell it off. In the worst case even if the price is not hitting my desired value, I would still be happy to stake them on Binance and get that 14% interest out of it. Anyways it is a win-win.
It is also risky if you don't know when to enter and exit. In the worst case, you will end up selling it at loss or holding it for a very long term. This has happened to me several times. So, always invest only in coins you know very well and are confident about. Just because DOT worked out very well for me, it doesn't mean that it will work out for you too.
Long term investment
A safe piece of advice that I would give anyone would be to make use of the dip for long-term investment. But make sure you know enough about the markets, the coin, and everything before you get inside it. Let's take BTC as an example, in the last two months we had several dips and the price of BTC was oscillating between 42k dollars and 52k dollars. When the price of BTC hit 42k dollars many people did panic sell thinking that it will be the end of BTC and this crypto investment. It usually happens in any red market. But there will also be clever individuals who are here for nearly a decade who knows this is just an opportunity to purchase for the long term.
I'm telling this because it worked out for me. Trying different coins and moving around investing on multiple coins and looking for a profit short term is risky. But if we are confident about a particular coin and if we know for sure it can have a great future, the best thing to do is to make use of this dip and purchase a coin.
Our intentions can be for the long term but for someone who is purchasing BTC at 42k dollars, when BTC is touching 52k dollars again, it is already a great return and at that point, we shouldn't have any greed and book our profits. Maybe a partial profit will also be good. There will always be another dip where people can purchase it for a cheaper price and do swing trades.
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Indeed beer market are good, I gives an opportunity to pick token or coin to buy. But the really problem is that, it really hard to chose which of the coin to purchase, because the red market can't be predicted. It might be short time or longtime
Absolutely true. It is hard to predict things in a bear market but we can trust some of the coins we had known for a long time.
Yes. It been awhile I always wondering why people don't talk about Yearn finance YFI, it's not part of Cryptocurrency. Two days ago I read about Cryptocurrency with most highest price in 2022, which bitcoin after Ethereum. But why people don't really talk about YFI that has value of $32,000 in market..
I have absolutely no idea about yearn finance.
Okay, I have to make some research about it then.
Thanks
We should make long term investment. Or Wait for a good time to sell. Fear is your enemy and if you sell your coins or tokens you will lose forever. Just hold and wait for a Bull.
Yes it is right. Choosing the right time to sell is very important. I still have regrets for selling my BTC right before the big pump that happened last year.
It's never wrong to take profits but I am not so sure we are in a bear market. However the sentiment on crypto is definitely bearish. Usually swing trading on the range tends to work until it doesn't. So I would be careful because it could run either way eventually. Just make sure to leave enough for either direction.
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Yes definitely swing trades are the most risky ones.
Day trading is probably the most risky. Swing trades aren't as bad because you are looking at things a little bit further out.
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Swing trades are good only if we know what we are doing. Otherwise it is risky too.
My personal take on things is I just use this time to rebalance portfolio. Most projects I get into it is because I believe in the long term vision like hive, but will wait for a bigger pullback to buy in. For me I just look at what prices were at before and where they have fallen to for example Sps has taken a bigger hit % wise than DEC so for me I a balancing far more into SPS than dec atm (NFA) I'm just taking this approach because I am still long on Splinterlands. Although I am still relatively new to the crypto markets I have been rather successful in stock and other trading platforms.
Good luck on your journey here. Compared to stick market, you have to be a little more careful here. But you might find things fascinating here. 👍
buy btc and hold for dear life :3
That can be a little risky if the plan is only for short term.
Is it really a bear market?
Looks like. They are not moving at all for the past few days.
At first you buy the dip, then you become the dip. Dont be rushing to buy dips guys, might seem like a good bargain but not in a year when things are bleak as hell. I have a large amount of DOT but its making me nervous. It isn't really a scarce asset, and it kinda came in a was evaluated sky high from the get go, it hasn't had a chance to find its all time low yet which is very worrysome.
Yeah I agree. We will never know how ling the dip can last and especially if there is another bad news and the market can go further down.