A Viable Alternative
It is difficult to comprehend how any good could have come out of the covid lockdowns. However, there were a few instances where, given the correct approach, a positive outcome was attainable. Being unable to work forced many individuals to explore the idea of online income. This ultimately introduced many to the world of Crypto.
This happened to coincide with the initial stages of a new Crypto bull market, which managed to garner a lot of attention, along with new investors. This in turn managed to produce a new group of Cryptoneurs, individuals who would now choose Crypto as a full-time income source. There are many who chose to utilize this moment as an exit from traditional income models.
The only problem with this decision is that it is relatively easy to excel in a bull market. After all, everyone is a genius in a bull market. However, all bull markets are followed by bear markets, and here is where the true challenge arises. Generating an income during a bull market is relatively simple. Prices simply continue to rise.
So, whether you are hodling, trading, or in DeFi, your income is simply increasing by default. This will often lull participants into thinking that it’s simply plain sailing from here. However, what actually does occur is a bear market that eventually cuts income streams by 90% or more! This is where Cryptoneurs face their most significant challenge.
Defining Moment
Honestly, I don’t even know why the term “surviving a bear market” is used in relation to the average investor. Unless you are earning your income from Crypto, there is nothing to survive. Your life goes on as usual. Your bills are paid, there’s food on the table, and all other financial commitments are taken care of. The Cryptoneur, on the other hand, is relying on a collapsed market as a source of income.
This is where the rubber really hits the road. In many ways, surviving a bear market as a Cryptoneur is a defining moment. It’s make or break, do or die! As a Cryptoneur, if you can make it through your first bear market, the worst is over. Income will once again begin to rise along with the next bull market, and the chances of you having to revisit these levels are unlikely.
Anyone who survived 2018 never had to revisit those lows again. Even though the 2021 bull market surrendered to yet another bear market, there was a level of safety. In other words, if you could survive when Bitcoin was at $3K, you definitely can survive at $15K, right? This is why I promote the idea of building your economy over multiple years before expanding your lifestyle.
Final Thoughts
Your first bear market will be your biggest challenge, and if you survive, chances are you are set. Surviving your first bear market as a Cryptoneur is a prerequisite to future success. This is where your “business” is given the seal of approval. The first bear market is the most challenging. They become increasingly easier to overcome, as capital grows during the bullish times.
It’s a case of five steps forward, three steps back. However, your first bear market doesn’t have a base to support the initial three steps back. A desire and effort to survive your first bear market is imperative. It may seem extremely difficult, but survival makes the next one that much easier, to the point that you can pass through future bear markets with a solid income still intact.
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.