Financial freedom is what mostly everyone are seeking being in the cryptocurrency space and a bear market is a great opportunity to start with. Most people in the space are anticipating a bear market where in fact when Bitcoin started plummeting from its all-time high of $65,000 while dragging altcoins down marks that the bear market has already started. Obviously, no one really knows about it and it has just been realized when the market keeps on tanking.
As experts or veteran in cryptocurrency space says, a bull market is where you sell while in a bear market is where is accumulate the assets you love. And as we are obviously currently in a bear market, here are 3 of the most basic approach in investing during a bear market and getting ready for a new bull market.
Dollar Cost Averaging - Accumulate Responsibly.
Dollar cost averaging is one of most effective and probably the best lesser risk approach to invest in an asset you truly believe in that has a huge upside potential in the future.
Using dollar cost averaging or DCA during a bear market is one of the safest way to invest since no one knows when will a bear market ends and a new bull market starts.
Here's a simple explanation how to DCA your investments;
If you have $100 to spare, an amount you are ready to invest in and the money you won't be needing in a next coming months or years, here's a way of how to DCA.
(This is only an example/demonstration and not a financial advice).
If $ETH's price is currently at $2,000, put $10 first.
If $ETH goes down to $1,500, put $20 into it.
If $ETH goes to $1,000, put $30 this time.
If ETH goes down to $500, invest the remaining $40.
You now have 0.1283 $ETH and $780 is the $ETH's price need to reclaim for you to have a break even or get your $100 back in $ETH. Instead of putting it all during $2,000 price, you DCA and now your base price in $ETH is way lower and it's a pretty solid entry to get ready for a bull market since $ETH is a strong asset with a great potential in the future.
Diversify Your Portfolio With Strong Assets.
Bitcoin and Ethereum is probably the strongest asset that will eventually get up on its feet after it falls. But the market isn't just all about Bitcoin and Ethereum because there are other potential cryptocurrencies out there that can still outperform them when it comes to potential percentage growth.
You can love Bitcoin and Ethereum but putting all your investments in those assets means missing out on the other opportunities the market can offer.
Diversify your portfolio with different assets that has the potential and with real use cases like Bitcoin Cash, BNB, ZPAY and more. Do not invest your money in one place because diversifying means a possibility of other assets to help or save your portfolio when other assets are performing not very well.
Invest In Real Assets.
A bear market is the best opportunity to buy assets that are fundamentally strong. During a bear market, prices will be dragged down to the lows you might not expect but if you are aware of the assets you are looking into, you'll realize how huge it is as an opportunity to start building up a portfolio.
Avoid adding meme coins or coins that doesn't have a real utility in your portfolio. This doesn't mean that their price can't surge up in the near future but the probability of losing it all during a market crash or bear market is higher compared to a bull market.
Looking in the longer term and getting ready for the next bull market, making a deeper research for the top 100 in the cryptocurrency ranking assets and investing into it is way better than gambling in a meme coins that are only meant to be a degen trades.
This not a financial advice. Always trade at your own risk and do your own research.
Original Article: Read.cash.
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