How to Navigate a Crypto Bear Market

Did you know that crypto has been through a serious bear market before? The crypto bear market of 2018 was rough on many investors, and some experts say this bear market may see coin prices fall even further.

Whether you’re thinking about getting into crypto or you’ve been investing for years, it’s normal to be anxious in a bear market. Will the market ever recover?

Will the price of Bitcoin and other cryptocurrencies drop even more? It’s hard to find definitive answers to these questions. That said, it is possible to invest in a bear market without risking too much money.

In the article below, you’ll find a list of tips that will help you navigate the crypto market. Read on to learn how to be smart while trading crypto in a bear market.

Learn to Use Dollar-Cost Averaging

You might be asking yourself, “is crypto in a bear market, and if so, how should I change my investment strategy?” The truth is that smart investors don’t have to change their investment strategy in a bear vs bull market.

That’s because most smart investors use dollar-cost-averaging to invest in the assets they believe in. Dollar-cost-averaging refers to investing the same amount of money at regular intervals.

This is a far better strategy than trying to time the market. When the crypto market crashes, it’s tempting to dump a lot of money in so you can “buy the dip.”

However, there’s really no way to know if the market will continue to fall even further.

That’s why you should decide how much you’re comfortable investing in regular intervals, then invest that amount once per month or once per week. You can use dollar-cost-averaging to buy Bitcoin Cash, Ethereum, or any other crypto-currency.

Keep Plenty of Cash on Hand

It’s important to play it safe in a bear market. You don’t want to overextend your finances and stretch yourself too thin. Figure out how much you can invest with dollar-cost-averaging and then keep the rest of your money in cash.

The worst thing that can happen to your investments is if you’re forced to sell them for a loss. This can happen if you have an unexpected expense but don’t have the cash to pay for it.

Be sure to keep an emergency fund full of cash that you can use at any time. That way, you won’t have to sell your crypto at a loss.

Reviewing the Best Ways to Navigate a Crypto Bear Market

Just because crypto is in a bear market doesn’t mean you have to stop investing. In fact, a crypto bear market is a great opportunity to buy assets at steep discounts.

You just have to play it safe by dollar-cost-averaging and keeping plenty of cash on hand for emergencies. If you want to learn more about investing, continue reading all the articles on this website.

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