Always have funds to invest during bear markets
Today I was looking at the market and almost all the coins in my portfolio were in red. The intention was not to buy something but just a feeling that I didn't have enough stablecoins right now to make any investments. This is what made me write this article now. Understandably, bear markets are unpredictable, and bear and bull trends are important for a healthy market.
Keeping enough stablecoins
Whenever there is a bull market trend, I start feeling greedy thinking that the market will go further or there will be new opportunities in the market. By thinking this I miss the profit that I have in my hand. This has happened to me 2 times in the past. But now I feel awakened but don't know how my mindset will be again when the next bull run happens. Today we have a bear market trend and I feel like buying without having any money in hand but next time when the market is at its peak, I shouldn't be greedy and wait without selling.
Having enough stablecoins for the best times of the market is very important. Of course, booking profits is also an important thing. The biggest problem is that we might have sold some crypto for let's say 100 dollars during the peak market trend. But if the market goes further up, we may not have enough funds to book profits further. When it comes to bear market trends the same thing happens. We might have purchased something and the market might fall even further leaving us no stable coin to make any further investments.
Deciding when to enter during a bear market
We have to know when to enter during a bear market trend. We shouldn't be spending all our stablecoins during an early bear market. If we do so, we are stuck throughout the entire season. The best thing to do is get inside step by step. Initially when we see a small fall, we can enter with 20 percent of our funds. If the fall happens further we can go up to 50 percent. I would suggest keeping the remaining 50 percent as it is and investing only when the next upward movement starts. The upward movement should also be a concrete one and not a momentary thing that is short-lived.
Doing multiple buy and sell cycle
We will be able to make money only if we do multiple buy and sell cycle. If we just buy and hold for the long term, we might be able to see a decent growth in the invested value but unless and until we book profits at peak and buy back at low, we will not be able to increase our holdings exponentially. This is not an easy thing for anyone but doing this will increase how much we earn from the market.
Identify good coins to invest
There are a few coins in the market that don't react to any common market trends. They don't go down and at the same time, they don't go up either. It is better to stay away from such coins. But even if those coins show a great increase over years without getting affected by the temporary market situations, then there again they are good coins to invest in. Choosing the right coins to invest in is very important because they can only make us wealthy. Investing in the coins that is not going to make a huge difference is not going to help us in any ways.
For example, today when I was looking at my portfolio I found out that BNB for instance has shown great growth in the last few years. I remember purchasing it for around 200 dollars but today despite a heavy bear trend the price of the coin is a a very good range and I'm sure it will see a great pump during the next bull market. Choosing these types of coins and other coins with good use cases will keep our investments safe even if it is a short-term or long-term investment.
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That's something I never seem to be prepared for. Basically it is hard for me to keep assets liquid when there are revenue generating schemes through staking, depositing or differently. But who is prepared and sets some liquid aside, surely grab some nice profits.
Having available liquidity is something that I also learned very late. When one believes in a market, one should always have some liquidity available to go and buy during downturns
I think keeping some stablecoins handy is smart, especially for seizing opportunities during market dips. Nice one brother
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How I wish that they also kept some pee at funds that I can invest in cryptocurrencies right now. I think this is the best time to invest or if not, be active in a platform to earn as much as possible.