When you're in a bull-market, it seems like pretty much everything you do turns to (digital) gold. If King Midas were alive today, (or if he'd even ever existed) he'd be all over those crypto bullmarkets.
But when you're in a bear market, it's almost entirely the opposite. No matter what good news comes out, altcoins don't seem to budge. On the other hand, the slightest bit of bad news and bitcoin falls off a cliff.
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The strategies that have fared us so well in bull markets don't work as effectively right now. Our SoonMoon tests have been put on hold, simply because the coins we're tracking are pretty happy doing nothing in terms of price.
ICO expectations tend to be 2x at best, compared to in a bull market when people are expecting 10x right off the bat. Of course, coins don't often actually get that kind of ROI, but there's a clear difference between how they perform in different market cycles.
And all of this makes perfect sense. If a bear market allowed you to carry on getting gains without much effort, they wouldn't be bear markets.
But it begs the question...
What on earth are we supposed to do with our time during one of these cycles?
Where do we get our fixes from? And more importantly, is there anything we can do to make money, or do we just have to twiddle our
thumbs ledger nanos until the next bull market?
When your portfolio is getting wrecked, "HODL" does seem like one of the only things you can do. Indeed, you don't want to end up selling at the bottom, unless you really have to.
We're not going to go into the "Should you sell and buy back lower or should you just hodl and not go insane?" debate today, because we don't really know the answer.
But, we do think there is good work to be done in a bear market, that will set you up for even bigger gains in the next bull market. It may even help you avoid getting wrecked in the following bear market too. Which would be nice.
So for the rest of this post, we'll list some of the things we've been doing in this market, and that you can do too.
Note: Not all of them will result directly in making money, but they will all increase your crypto knowledge and this is ultimately what does lead to making money.
So, how do you level up your knowledge?
1) Keep Researching
A bear market is probably the best time of all to research projects. Things are moving slower, there's far less FOMO causing you to jump onto mooning coins, and even if you miss an ICO, you can likely pick it up on an exchange for a similar price later (without having to tie your funds up for a few weeks).
Here are some of the things we've been researching:
Note: All three of the above are things we want to share with our subscribers, and in the next few weeks we'll be launching a private mastermind for those of you who want to level up your own crypto activities with us. Stay tuned for more info on that. Consider this the first official heads up.
2) Average Down
If you read our previous post about averaging down, you'll know that right now there is a fantastic opportunity for you to do the same. Remember, this can be a double edged sword, and it may be better to wait for coins to start to show signs of recovery before you make any moves.
Read the post linked above to learn more about this.
3) Take New Positions
As well as averaging down, now is a good opportunity to take positions in coins you've been waiting to get hold of. Everything is so cheap right now. These past few months have been a great shopping spree.
Of course, unless you are putting fresh FIAT into crypto, then those cheap prices are relative. Your Bitcoin or Ethereum will also have gone down in price, so an altcoin is only "on sale" if it has fallen more than the base currency you're using.
Fortunately, most of them have.
4) Participate In ICOs
As we mentioned above, even though we're in a bear market, a lot of ICOs are still turning profits (you do have to be quick though), and some of the ones you invest in today, may end up hitting the exchanges during the next bull market. This could result in huge gains, as many of the November ICOs are evidence of.
Quantstamp for example launched in a bear/sideways market, and when it hit exchanges at the start of the next bull run, it went something like 10x in the first couple of days.
We're not saying every ICO that launches right now is going to do this, but we ARE saying that just because we're in a bear market, doesn't mean ICOs are suddenly unattractive.
Just remember not to throw everything you have into these projects, so you can keep liquid.
5) Learn Trading
We've always been more about fundamentals and long-term holding more than technical analysis and trading based, but that doesn't mean you have to be too. There are plenty of traders out there making decent money right now. Some of the best traders make money off volatility, so they are doing pretty well for themselves right now.
Of course, do research, increase your knowledge, and don't just listen to the average TA wannabe on social media, but if trading is something you want to learn, now could be a good time.
Note: We've been having some success with a trading bot over the past 10 days or so as well, and will do an update on this soon once we have more concrete results to share.
6) Learn From Previous Mistakes
It's very easy to sit here and say "Wow, we should have sold at the top in December/January and then we'd be able to buy back double the coins now, or buy back the same amount and pocket a lot of profit."
Yes, hindsight is always 20-20.
The reality though, is that you have an opportunity now to learn from this and ask yourself "How could I have played this differently? How could I have predicted this? Were there warning signs?"
Many people make mistakes by trying to time the top. During the next bull run, there WILL be many people who try this exact strategy and fail. They'll end up buying back in at a higher price, rather than lower.
So it's very important to look at the bigger picture. Were there signs?
This is something we're studying pretty diligently like now, so next time, we will get out in time and share the warnings with your too.
Always Be Proactive
Let's face it, the crypto markets suck right now, there's no denying it. However, that doesn't mean you should despair, and it definitely doesn't mean you should just give up on crypto.
Yes, now is a good time to take a break and enjoy some downtime, but not for too long. There is always opportunity, and as long as you are being proactive and doing some groundwork now, you'll be in an even better position during the next bull run.
Just like "summer bodies are made in winter," summer crypto gains are made in winter.