Making profit even in a bear market.
The strongest asset of a trader is the mind, the journey of a successful trading journey starts with a positive and well grounded mind. It is expected for every trader that wish to be successful to have an elite mentality as that’s where the journey really starts. There have been talks in the past few days about bear market and the end of bull run as it were, these has led to a lot of liquidations. The market is full of fearful traders right now, which should not be so. The first thing to know is what bear market really means and when do we really say the bear market has started.
Bear market refers to a period where there is a decline in the market price, it occurs when there is a negative trend in the market generally. Bear market is not only peculiar to the cryptocurrency market, it is used in the traditional markets. The stock market as an example of a traditional market make use of the bear term when there is a 20% or more drop in the market price. This signals the start of a bear market in the traditional market and also the cryptocurrency market. There should be no cause for alarm as there is a big possibility of earning and also making profit in a bear market.
To be candid, the bear market is a great time to build a good portfolio as prices are low and a promises better ROI(return on investment) when the right asset is bought. Panic selling or buying is not the right approach a seasoned trader should have an strategy in place for a bear market. There are some things to do in a bear market to stay profitable, it is a plus for every trader to know them just in case the bear market hits.
For a trader that will love to act like an investor:
=> Look for solid assets to buy.
A bear market is a period of time where there will be drop in the prices of most assets in the market, both the real ones and the ones without a use-case. A wise trader will make research, Fundamental analysis, and buy into projects that solves a problem or the ones that will stand the test of time.
=> Look for Staking and farming pools
It is sometimes better to make one's money earn passive income, buying tokens that offers staking option is a great decision during the bear market. Some offer great APY and by the time the bear market is over there will be profits in the token staked and earningsy too. Crypto exchange like OKEx gives traders the opportunity to stake great tokens with mouth watering APYs.
=> Reshuffle your assets
There is no point holding on to a failed project, it will be a great move to sell off some for more promising assets. This should be done after lots of research and removing the emotions towards some particular tokens.
=> Go short on dwindling projects.
There is always a trending topic in the crypto space, ranging from DeFi to NFT to Metaverse and also Gaming. It will be a great addition to look for a project that is already going out of hype and go short on it, this is because there is a great probability that the decline is its price will be sharp during the bear market.
This is really a virtue, there will lots of time to stay away from the market and watch it form or react. A trader should learn how to act like an investor in a bear market, just to stay away from trades and engage in other things.
A world-leading cryptocurrency spot and derivatives exchange, OKEx offers the most diverse marketplace where global crypto traders, miners and institutional investors come to manage crypto assets, enhance investment opportunities and hedge risks.
We provide spot and derivatives trading — including futures, perpetual swap and options — of major cryptocurrencies, offering investors flexibility in formulating their strategies to maximize gains and mitigate risks.
Telegram group: https://t.me/OKExAfrica