You’re in a cryptocurrency bear market, and it’s tough. The prices of bitcoin and other cryptocurrencies have been falling for over a year now, and things don’t seem to be getting any better anytime soon. You might be wondering how to survive this volatile time in the crypto market.
Take a break
Take a break from crypto: Don’t be afraid to unplug yourself for a while. Crypto is just one part of life and when we put too much emphasis on it, we can lose perspective on life outside of it.
Consider taking some time away from all things Bitcoin and Ethereum so that you can get back in touch with reality and regain some sanity.
Follow the news
As a crypto investor, you have to follow the news. Not only does it help you stay in the loop, but it also helps you get a sense of where the market is going and why it’s behaving the way it is.
For example, if there’s news about a government crackdown on ICOs or exchanges in your country, then it might be likely that both will take a dip soon after.
That knowledge can help you avoid being caught off guard when something like this happens and therefore save yourself from any potential losses as well.
Use the downtime to learn more about crypto
While the market is down, it’s a great time to learn more about crypto. Whether you want to trade or simply use cryptocurrencies, there are a number of ways that you can stay active and engaged in the community. Here are some tips for how to do that:
- Learn how to trade: If your goal is to actually earn money with cryptocurrency, then learning how to trade will be essential. Trading requires practice and patience, but if done correctly, it can lead you towards financial freedom.
- Learn about the technology: It simply means understanding what makes certain cryptocurrencies different from other currencies and why so many people believe in their potential for success.
Learn how to trade in a bear market
Learning how to trade in a bear market is a necessary skill that every trader should have. In fact, it’s not enough to just know how to trade; you should also know how to do so when the market is down. The best way to adapt your trading strategy for these conditions is by setting small limits on everything from risk level and leverage, all the way down to emotion regulation.
- Risk: You can start off with 10% of your capital as maximum risk per trade (this means that you will only be able to use $1 out of every $10 invested). Once this number increases by 20%, increase your stop loss by half a pip on all new trades until it reaches its original level again. This helps protect against emotional attachment and losses due to over-trading during volatile periods while still offering enough room for profit in more stable markets.*
- Leverage: Set your leverage at 1:2 instead of 1:100 like most traders to do when they’re starting out—this will allow you some room for error without putting yourself at risk too quickly.*
- Time Frame: Choose a timeframe based on what type of trader you are; daily or weekly charts might be appropriate if sports betting or stock trading interests you more than day trading bitcoin under certain circumstances.*
- Emotion Regulation: Learn how better manage emotions through meditation techniques such as mindfulness meditation
Crashes are part of the process.
The crypto market is still new and there are many things that we don’t know about it yet. While there may be times when your portfolio crashes, keep in mind that this is all part of the process.
Follow these tips and remember that nothing lasts forever.