How To Invest In The Crypto Bear Market?

Seasoned traders see each bear market as a great possibility to invest in crypto. All you need to do is to overcome fears and find a suitable strategy. Let’s examine possible scenarios.

“Buy the dip”

This famous phrase means buying cryptocurrency after its price has dropped. The idea here is that the new lower price represents a bargain as the “dip” is only a short-term decrease, and the asset is likely to bounce back and grow in value with time.

Like all trading strategies, buying the dips does not guarantee profits. Assets can lose price for many reasons, including changes to their underlying value. The main risk of “buying the dip” is that you never know the moment when prices will go even lower.

Diversify your portfolio

During each bear trend, some assets usually get hit harder than others. To minimize losses and get profit from growing assets, smart traders advise to keep a diversified crypto portfolio.

That means investing not only in BTC or ETH, but try purchasing other promising cryptocurrencies or NFTs. There are a lot of: Avalanche, Uniswap, and even meme coins like Shiba Inu. While most of the traders will be focused on pulling out their Bitcoins during the crypto winter, less notable coins will have some chances to surge.

Make recurring buys

Bear market doesn’t last one day. That’s why you don’t need to hurry and buy all the desired volume at once. Monitor crypto prices, create an optimal spot order, and purchase some coins without panic. Repeat in 2-3 days or in a week.

This strategy will help you to be aware of all price changes, and to wait for the moment when the asset’s price will be really good to buy. Otherwise, you may feel sore after purchasing 100 SOL for $14,5 last week, while today you could buy 107 SOL for $13,5 each.

Look for passive income 

If you are still too afraid to buy any cryptocurrency amidst the bear market, look for easier ways of receiving profit. For example, crypto staking and crypto lending allow you to earn passive income with the assets you already have, and require no additional investment.

And don’t forget about various airdrops and giveaways: many projects hold them despite all the market downturns!

Final advice to survive the crypto winter

During the bear market, almost each crypto asset suffers a significant price drop. No one can guarantee that the prices will go up again. However, it is useful so study some trends and analytics to see what happened to BTC, ETH, SOL and other popular cryptos after such drops: new peaks and bullish periods.