Before I begin this video I really need to emphasize that this is not investment advice, and really, everything presented to you here is my opinion and is the result of my own research as well.
This should not be taken as professional investment advice.
It’s easy to get greedy in this space where you can see big percentage profits in relatively short amounts of time, but if you ever lost sight of this fact, bear markets are great for handing you a dose of reality.
What I mean by this is that the most popular investment advice ever given is to never invest what you can’t afford to lose. During a bull market when everything is going great and your seeing your investment increase this advice tends to take a backseat.
What we all need to keep in mind is that every market, no matter if it is, stocks, real estate or cryptocurrency, they all have bear markets.
If you did end up investing money you otherwise would have needed to cover your serious expenses, like your mortgage for example, a bear market will make you deeply regret that decision.
Bear markets don’t last forever, but they can keep the markets down for long periods of time.
If this is the case, than perhaps holding onto your investments would be a good option for you.
Unless you are an expert trader, earning an income through trades in a bear market can be awfully tricky.
If you’re deciding to hang tight and ride this out, here are some great ways to help you prepare for the next bull market.
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Take your time to deeply research projects.
Find potentially undervalued ones that could see a lot of appreciation when the bull market returns. Get to know the team and the community, you’ll finally have the time to see how the sentiment is during a down time and how committed the team is to driving their project forward despite a drop in price.
If you’re hungry to see any kind of positive ROI, then ICOs could be an option for you.
If you do choose this route, please keep in mind the lock up period between the ICO and when the coins are listed on exchanges, as this will affect your own liquidity. Also, you’ll need to ACT FAST once they are listed on an exchange to see the best profit.
Remember that now is a good time to buy into coins you couldn’t afford to before.
The best case scenario is that you took some profits near the top of the market and you now can take advantage of this down trend. If you weren’t able to take any profits but you’d like to move your investments around to get some promising coins, just remember to consider the fact that the coins you’re trading have depreciated as well. The trick is to identify which coins have had less percentage drops and which coins have the potential for higher percentage gains once the market picks up again.
If you’re considering selling now to buy back as the dip progresses, be wary of not buying back at a higher price.
I’m only saying this for those who can be really unemotional when it comes to trading. (This is also why I really try to stay away from giving any kind of references for trading at all on this account.)
I truly believe in researching different projects and being able to identify ones that have the best long term potential, this makes hodling much easier and bear markets much less apocalyptic.
It’s a great time to go back and recognize the signs of “the top”.
Bull markets only last so long, this could help you in the future when we inevitably see this cycle again. So go back and see what the mainstream media was saying around December of 2017, did they suddenly change from anti cryptocurrency to now giving tutorials on how to buy Ripple? Did Jamie Dimon completely change his tune from calling Bitcoin a fraud to now looking into having his own uses for blockchain tech? If you were a sucker in 2008 when that market dumped, you’ll probably already have seen these signs coming, but for those of you who are new to this realm of investing, these are invaluable insights to have for the future.
How to hedge your investments:
Look at “stable coins” like Tether, DigixDAO, when they release their DGX coins, or the offerings on Bitshares like BitUSD, but please keep in mind that even these pegged cryptocurrencies will indeed be feeling the tension of the dropping prices. If the tension is too much like a rubber band, they can very easily snap and you’ll be left with a loss either way. If you don’t believe me, just take a look at Nubits.