If you’re invested in cryptocurrency, you’ve probably felt the bear market’s pressure. After all, the cryptocurrency bear market has been on rampage for several months. But it’s important to remember that bear markets are a natural part of the investment cycle. They don’t last forever, and there are things you can do to weather the storm. Tedi Ticic, one of the most popular traders in Europe and the author of Cryptocurrency Expert, lists several tips on overcoming the upcoming bear market.
Don’t Panic Sell
Panic selling is a knee-jerk reaction when a trader sees a dip in their portfolio. It’s hard to stay calm when everyone around you is scared; consequently, it’s easier to get swept up in fear and make rash decisions. Tedi observes that selling your assets off at a loss to avoid potential losses might not be the best idea.
If anything, the anxiety and stress can make you lose out on opportunities for exponential gains when the market stabilizes. Historically, the market always regulates itself, and the prices often go back after that. Tedi says if you can manage your emotions and avoid panic selling when prices go down (and don’t jump ship at every dip), you might earn better returns in a few months.
Diversify your Portfolio
An extra income stream is always welcome, especially during hard times. Tedi Ticic acknowledges that no one is versed enough to confidently tell you how a life-changing asset will happen, but that shouldn’t deter you from investing. However, it’s safer to diversify your investments. Don’t put your eggs in one basket.
The basic idea behind diversification is that not all investments are created equal, which means some will do better than others at any given time. So by spreading your assets around in various markets, you’ll be able to maximize your profits while minimizing hits during the bear market or, worse, a cryptocurrency winter.
Do Your Research
Experienced traders and novices have felt the pain, but this is the best time to acquire knowledge and prepare for future growth. Of course, many investors don’t want to wait for a recovery, but if you’re looking at cryptocurrencies as long-term investments, now is not the time to abandon ship.
In fact, it may be one of the most important times to invest in your education, given the many changes coming up soon that could affect your portfolio in the future. While the current market is discouraging, Tedi says it’s also the perfect time to learn more about the fundamentals of cryptocurrencies and prepare for when they rise again.
Stick to a Strategy and Don’t Get Lost in the Moment
When it comes to cryptocurrency investment, it is vital to stick to a strategy. This means investing only what you can afford to lose and not getting carried away by the momentary fluctuations in the market. If you do this, you will be able to weather the cryptocurrency bear market and come out ahead in the end.
Don’t Overestimate the Market
Some people make impulsive decisions during a downturn and buy cryptocurrency assets they would never have considered buying at the height of a bull run. Tedi Ticic believes this is not a wise cryptocurrency decision, as many digital assets are yet to recover from the losses incurred, and some may never do so. Try not to be greedy or overconfident because no one can accurately predict an investment strategy’s potential for success or failure when faced with a challenging environment like this.