Bear Market Guide
Market Meditations | May 12, 2022
? Bear in Mind
It’s ugly out there. The crypto world is reeling from a huge downturn set against the backdrop of the Terra network’s struggle to stabilize. Investing is tricky in bear markets, and things are looking grizzly. Even if BTC skyrockets to $100k tomorrow, the most valuable asset will always be time. Maximising your return on investment is paramount, and we’re here to provide some guidance.
Not only are the Bitcoin, Ethereum and Binance networks older and more established than projects like Dogecoin and Shiba Inu, but they feature sounder fundamentals and followings than most. The chart clearly shows higher resistance to falling prices among stronger projects than more questionable ones.
1) Re-Search and Destroy
Bear markets are perfect times to spend less time obsessing over price action and more time reading. One of the biggest mistakes new investors make is outsourcing their decision-making to influencers, traders and the like.
- Backtest your trading strategies. This is an invaluable tool for traders, and often overlooked.
- If a project still sees respectable transactions per day, relative resistance to the downward trend, or remarkably resilient community sentiment during downturns, it speaks well of its future. Conversely, the opposite could confirm weakness.
- Study tokenomics. Scrutinising the numbers might reveal a chink in the armour that isn’t well-known. Many people love to bury their heads in the sand when they’ve hitched their wagon to a token.
Getting Started
We’ve produced a collection of guides to make digesting ambitious topics go down a bit easier. Starting with these topics will get your foot in the door.
2) Stable Your Coins
Keeping some dry powder on the side for market bottoms is almost always a good idea.
Making that sidelined liquidity work for you is a better one. This is not a risk-free strategy! Projects have crashed before and they will crash again, but when approached responsibly, it can be one of the safest.
- Earning yields on stablecoins is one of smart money’s favorite past-times, and with good reason. Decentralised protocols like Aave feature some of the lowest risk opportunities, but doing your own research is the only safeguard against getting wrecked.
- Some of the most reliable and competitive interest rates on BTC are offered through popular exchanges like Crypto.com and Nexo.
Getting Started
- Aave offers yields on a variety of coins and tokens. The APY is not outrageous, but trades flashy yield rates for reliability and one of the lowest risk ratings in all of decentralised finance.
- Crypto.com and Nexo are centralised exchanges, but offer competitive yields on more than Bitcoin.
3) Passive Plays
Even if conditions make entering the market riskier than normal, there are plenty of ways to passively earn that are more promising than that “GET PAID FOR TAKING SURVEYS TODAY!!!!” email lurking in your spam box.
- Some popular games, like League of Kingdoms and Alien Worlds, offer play-to-earn opportunities with no purchase required. Of course, these games feature enhancements at a price, but planting passive seeds may eventually grow into money trees.
- The Brave browser pays out Basic Attention Token (BAT) just for using it. By allowing periodic (and surprisingly unobtrusive) ad pop-ups, Brave is able to compensate users.
Getting Started
- If gaming is your cup of tea, you can begin by logging into League of Kingdoms, or giving our introduction to Alien Worlds guide a read.
- Feel free to read them using the Brave browser compound passive gains.
There is a common theme to these methods of weathering the storm: assume as little risk as possible while increasing your chances of earning wealth.
