Like most of you I am not exactly enjoying the current cryptocurrency bear market, however that is the nature of the beast when you are in a highly volatile, unregulated and new market. While browsing the likes of youtube, twitter and reddit I have seen many people sitting on negative positions from December asking for guidance and advice on what they should do. Most of the advice people receive is to "go away for six months and don't check your portfolio". I understand why this advice is being given - Looking at your negative positions with seemingly no hope of ever getting back to your purchase price can be downright depressing and cause anxiety for some people. With that being said I disagree with the advice, for the following reasons:
Firstly, avoiding looking at your portfolio or following the market shows a lack of accountability on your behalf. Ultimately, you are solely responsible for your investment decisions and you should face the consequences, whether they be positive or negative. If you ignore your shortcomings you are ignoring a problem and are not improving yourself as an investor and arguably as a person.
Secondly, if you are only an active investor in bull markets you will be unable to recognise market cycles which are critical in terms of your investment strategy. While most of us now have some experience in an overheated bull market and can take that experience to better position our portfolio in bull runs, those that are not paying attention during the current bear market will not be around to witness the beginnings of the next bull run and will be unable to identify the critical factors that lead to the market turning. This is vital information that cannot be learned without experience.
Thirdly, during this bear market you are able to re-anlayse the market without being clouded by chasing short-term profits. Market downturns are good for providing clarity as to which projects and investments have long term potential. A lot of projects have been wiped out now that market conditions have changed. With the changing market, you can now see how projects have responded to unfavourable market conditions and re-position your portfolio.
Finally, this bear market gives you opportunity to accumulate positions at significant discounts form the last bull run. If you truly believed in a project in December last year and still do to this day you can build a large position for the next bull run. Many people will be reluctant to do so but markets run in cycles and all you need to do is look at stocks such as Amazon and Apple to see those that held and accumulated during down times were rewarded handsomely.
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This does not constitute investment advice, please do your own research.