By Idan Velleman, 5th July 2022.
These are difficult times for people investing in crypto. Portfolios are down 70%-80% on average from all time high. Investors are moving from risk-on to risk-off assets. High inflations, war in Europe, fear & greed Index is at its lowest since years. On top of that, Terra Luna – the third most popular coin up until the first week of May crashed from $100 to $0 in a few days and triggered a liquidation cascading effect of different players such as hedge funds, exchanges, lending platforms, brokerage firms and miners. As a result, Bitcoin dropped almost 75% from its latest all-time-high in November 2021. Some of your friends and family members will even tell you – I told you that crypto is too risky and Bitcoin goes to 0. To sum it up – It looks dark and hopeless.
Still, there is hope and a light at the end of the tunnel. As a 2019 bear market survivor, here are a few tips to help you survive this period:
“The most important quality for an investor is temperament, not intellect” Warren Buffet
The most important lesson that I learned during the bear market in 2018-2019 is to have patience.
Prepare yourself for a tough time ahead. You should come to terms with the idea that we are in a bear market. It may end later than you hope. Just as the bull market ends sooner than expected.
Stay away from the screen. It will only distract you from the fundamentals. Stay calm and don’t panic from each sudden price movement downwards.
Fundamentals, Fundamentals, Fundamentals! There are only 5 coins left in the top 20 coins from those that were in the top 20 in 2018. Use this time to learn as much as you can, without the FOMO noise. Take the time to go in-depth and build your skills in research, staking, and coin selection. It is now a great time to search for the next top 20 coins. Look for projects that are well funded, building and deploying through the bear market, and offer a strong business case. If you find one that will reach the top 20 in 3 years, chances are that it could go 10X or more.
Be fearful when others are greedy. Be greedy when others are fearful. Don’t spend too much time on crypto-related Telegram, Discords, Twitter, and other social media channels. Block out the noise. Use those channels to only analyze when is the best time to start buying.
Fully Dilution only. When analyzing coins, look only at the fully diluted coins’ value. Any other valuation is likely a scam and will dilute you more and more as the bear market continues.
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