It’s an intriguing question: Can anything good come from a bear market? Today’s crypto bear market has many people on the edge of their seats, postulating around future prices, potential swings in price/value, as well as the forecasted plunge of invaluable tokens. These predictions make for interesting times as we all wait for a large market change.
It’s tough to gauge exactly how long the bear market will continue. Some say things are on the precipice of an upswing. According to Azzad Asset Management, bear markets often last 15 months as the dust settles from market corrections. This would suggest that the crypto market is not out of the woods yet when it comes to a trend change.
On the bright side…
The good news is these bear market trends won’t last forever. Markets do recover and trends do change. So how do you prepare yourself as a crypto investor for when the markets turn around?
Learning to spot indicators of market activity can help you capitalize on investment opportunities, specifically those which are long-term investments. When the market is down, many investors are on the hunt for investments that have the potential to grow before anyone else. Essentially, this allows them to get in on the ground floor. Do your research to find those opportunities that could pan out in the next few years.
Exhibiting caution in a bear market
Remaining tentative as an investor in a bear market is also completely acceptable. There is no sense in investing your money in something you aren’t sure of and that you don’t believe in. While there are opportunities to seek out potentially profitable investment vehicles, playing it cool and simply waiting to find something that makes sense to you and your money can be the right move.
Taking stock of current trends, innovations, and recognizing patterns and the general movement of a particular asset can also be hugely beneficial to your portfolio. Sometimes you might notice that specific companies in certain sectors are all moving toward a centralized methodology. Seeking out the largest most stable provider within that sector may be something to keep on your radar. That’s one way of surviving a bear market.
What’s your comfort level with risk?
In the end, all investors choose in their own way. Some are more risk-averse, others are more aggressive. Take the time to find out what kind of investor you are and look for investment opportunities within your own lane. Work within a budget and always exercise proper risk management!