The multi-month pullback in the bitcoin (BTC) and altcoin market is giving seasoned traders feedback on the 2018 crypto winter. Here are 5 things investors can do to survive a bear market.
Stay away from volatile altcoin projects
Once the market downturn begins, the first step may be to reevaluate existing positions and move away from volatile altcoin projects. Often these are new projects emerging from trending sectors of the market such as meme coins, NFTs or Wonderland (TIME) because most token holders are new to the community and not long-term investors.
dollar-cost average
Dollar-cost averaging (DCA), the process of purchasing in tranches over time to average the price paid and account for changes caused by price fluctuations. While the DCA strategy is a good way to find fundamentally sound altcoin projects over time, it’s usually best to wait for the dust to settle a bit and a period of consolidation begins.
Staking is perhaps the simplest way to increase the value of a portfolio in the long run and removes the pressure of daily price fluctuations as the staked cryptocurrency continues to accumulate tokens. Most tier one protocols offer staking options for earning returns, including Solana, Cardano, Polygon, and Avalanche.
Projects that help token holders earn through staking, liquidity staking, borrowing and airdrop are also notable when the market goes down. Staking is the simplest form of this as the number of tokens increases over time, but other options include launchpads, NFT marketplaces, and protocols known to offer airdrops to community members. An example of a protocol where early adopters are rewarded is the growing community of projects interconnected via Cosmos (ATOM) and Interblockchain Communication Protocol (IBC).
What are the noteworthy wrapped tokens? Details are on Kriptokoin.com.
Invest in yourself for bitcoin winter
One of the most personally beneficial things an investor can do in a falling market is to invest in themselves by learning something new. This will not only help investors avoid the urge to sell and miss out on future earnings, but it can also lead to new ways to build wealth.
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