The test of how good a trader you are is how well you do in a bear market. This universally accepted rule of thumb can be applied to any market, not just cryptocurrency, but what exactly is a bear market? What does the term crypto winter mean, and how can you survive? The crypto bear market, on the other hand, due to the often high level of volatility that cryptocurrencies experience. The challenges and dangers that come along with a crypto bear market tend to be on a much greater scale and, as we see the beginning of another crypto winter, with the majority of popular cryptocurrencies in the red, its time to improve the trading and investment tactics. Using the following, tried and tested techniques to survive, crypto bear markets, but first what exactly is a bear market for those who are unfamiliar a bear market is described as a sustained downturn in asset prices that causes your portfolio to lose value because many investors known as Bears begin selling their loss making assets in a bear market in which the supply of an asset is often greater than the demand. Now, what does the term crypto winter refer to so far in cryptos short history, crypto winter has been used to describe a long bad time when the prices of most digital assets keep going down for many months. During a crypto winter, the price of a cryptocurrency dropped significantly. For example, during the most recent crypto winter, which lasted from early 2018 to mid 2020 bitcoin lost 88 percent of its value.

The last crypto winters frigid cold, was felt by the larger cryptocurrency market as well. In fact, some of the most popular coins suffered price decreases of up to 90 to 95 percent compared to their aths. In the wake of all this, what are the 10 best strategies to endure? The crypto market number one dont buy the dip in the cryptocurrency industry. Buying the dip has become something of a cliche and, depending on your own approach and objectives. This piece of knowledge can be disastrous for your bottom line in a bull market, with a strong upward trend, traders might take advantage of short term declines to increase their long bets in a bear market buying the dip doesnt always work since important support levels are often Violated there have been a number of significant support levels between 6, 000 and 4 500 us dollars that bitcoin has broken through in the last 48 hours. In this situation, there was a good chance that trading on margin would have led to huge losses and the possibility of being forced to liquidate if youre, a trader, wait for confirmation. Indications like high time frame divergence, major ema crosses exceptionally high trading volume and double or triple bottoms before initiating a trade amid dramatic and emotional bear swings number two short: the rallies. In most cases, shorting upward rallies rather than buying the drop, is a more reliable move. Emas typically serve as resistance levels during significant downward movements, so any rises up to the emas that are met with strong rejections 20 day and 40 day.

Emas are two commonly used. Emas should be looked at as possible short entry points in addition to bth, eth and xrp margin. Shorting is allowed on the liquid platform for many more important, cryptocurrencies number three take a break. The importance of keeping a healthy state of mind should be evident, yet it isnt always obvious, at times of high market volatility, its easy to get blinded by our own biases. In the event, this occurs to you. It is in your best interest to walk aside for a bit go on a walk, meet up with a buddy or focus on another pastime. To take your mind off the market and if you believe in the long term, potential of blockchain and cryptocurrencies keep in mind that fundamentals have never been more favorable in the industrys brief existence. But during the last down market, the outside world, let alone large financial institutions were uninterested in bitcoin, but things are a bit different this time around, because the government and other institutions have taken notice in light of this. Taking a break and disconnecting is perfectly acceptable. However, it is acceptable to speculate in cryptocurrency during such times, but it is not acceptable to speculate on my mental health number four survive. This is what you want in a bull market. Your aim is to accumulate wealth and take advantage of the gains, but in a bad market. Your aim is to stay alive long enough to see out the next bull market, while losing as little of your wealth as possible and during a down market.

It will be difficult to expand your portfolio, but its not impossible either. To avoid this, i recommend concentrating on keeping your wealth and surviving the next bull market, its not glamorous, but warren buffetts investing technique, isnt, appealing either number five trust in the fundamentals when it comes to cryptocurrencies. Even low quality ventures may succeed, however, those with the foundations in place are more likely to survive a down market and emerge stronger on the other end. Although these indications may be beneficial in a bull market, they are less useful in a bear market. Instead, fundamental measures of strength could be used to find projects that arent doing well right now, what could do better when the market gets better as a result of shifting dynamics such as leadership, strategy, competition and market mode? The fundamentals of a project can change dramatically over time. You should keep an eye on projects on a frequent basis to make sure theyre on track and moving in the proper direction. If not, you should reconsider your investment in the project. There are almost always better alternatives. Number six dont try to short the market. Some investors may be tempted to short bitcoin and other cryptocurrencies, for example, wager that price will continue to decline, but experts warn against this strategy. A technique like this might cause more damage than good scott melker, a cryptocurrency miner and investor, who produces the spotify podcast wolf of all streets and is a creator of the wolfden newsletter said that the time for shorting has likely passed and that such a choice would Be based on an emotional belief that the market is heading to zero.

In contrast, the upside of shorting is quite restricted and purchasing now is exponential. Number seven have a long term perspective. A digital gold mine for years. Cryptocurrency has its ups and downs like any other financial investment. When looking at the market, it may be beneficial to look at it from a long term perspective. Instead, john woo, president of ava labs, a company that helps develop the avalanche public blockchain said the greatest achievements in the crypto field were made when the markets were down and ive never been more sure that the long term thesis is right. One cryptocurrency in particular, bitcoin has seen cycles of price declines and sharp increases. In fact, bitcoin notoriously plummeted in december 2017, plummeting from twenty thousand dollars to thirty two hundred dollars in only a few days before recovering number eight consider staking during a bear market. Investors may feel uncomfortable due to the declining value of their assets, and they may seek strategies to protect their portfolios in the world of cryptocurrencies. Staking is a way to increase both your security and your profit over time, for the most part staking is nothing more than a technique to earn extra money by storing your cryptocurrency on a blockchain for an extended period of time, however, staking which is like putting money In a bank savings account can help you get the most out of your money, while also earning a profit staking ethereum, for example, on binance can earn you up to 5.

2 percent apy. Furthermore, staking may be done via an exchange like kraken or coinbase, or through a software or hardware wallet. Number nine use dollar cost averaging to your advantage. Dollar cost averaging is an investing method in which a buyer splits a given amount to be invested and then invest money in a certain asset, such as a stock or cryptocurrency, at regular intervals, regardless of whether the market is up or down with this method, you can Steadily increase your wealth throughout the crypto bear market. The dollar cost average strategy is a logical and tried and true way, to increase exposure to an asset or asset class. Without having to time the market number 10 avoid leaving your crypto on exchanges. As the saying goes. Not your keys, not your coins. This can be used in almost any situation where there is a centralized, custodial crypto exchange involved. However, during a bear market, the danger of losing your money placed on these exchanges is significantly greater. Consider what might happen if the stock market went into free fall? There would be a loss of billions of dollars, leading several exchanges to go out of business. As a rule, you should use a non custodial wallet program like blockchain or even better a trusted hardware wallet like vault. However, if youre a trader or an investor its a given, that youll experience some losses from time to time it doesnt matter how much experience you have hitting a perfect 100 of the time is almost impossible by using the methods outlined here, youll considerably lower your risk Of becoming a victim of crypto bears in the future.

Additionally, if youre trading remember to use, stop loss orders and adhere to key fundamentals like these.