Bixin shares 10 Tips to Survive the Crypto Bear Market
Most investors are young and have never been through a macro environment this bad before.Inflation’s at a 40-year high. Any plans if people are going into financial collapse? Things can turn much worse. So, what should be done?
There are 10 Tips to Survive the Crypto Bear Market:
1. Develop A Skill
Learn and Build – don’t just sit around waiting for the next few years. It’s 2022, and investors can learn online for free.
2. Don’t Compare Directly to 2018
Most projects during 2018 were scams and white papers. The protocols now are much more mature. There’s more than $140 billion locked up in DeFi, and some protocols are generating millions.
3. Most Coins Will Never Hit ATHs Again
Projects run out of funding. Developers get bored and disappear. Or new projects come and take the shine away from their bags. Most 2017 coins never recovered to their ATHs.
4. Don’t Over Estimate Huge APRs
People tend to overestimate large APRs coming from inflationary tokens. The 200% APR doesn’t matter if the token’s value drops by 95%. Open a spreadsheet and test with different scenarios.
5. Improve Investing Formula
Whether realizing it or not, everyone has an investing algorithm in their head. Sit down and reflect. Write down rules and principles. Just be real and don’t make the same mistakes in the next cycle.
6. Invest in Health and Friendships
The investor probably sacrificed a lot during the bull cycle. Some things are more important than money such as relationships and health. Use this period as a chance to strengthen those areas.
7. Don’t Sell the Bags
This depends on which projects people invested in. Someone held BNB / Cardano bags through 2018 Crypto Winter, and investors eventually soared. Warning: Sunk cost bias, Survivorship bias, Anecdotal evidence. Still mooned.
8. Adjust The Theses
Every cycle has its darlings…
In 2017: EOS, NEO, XRP
In 2020: DeFi 1.0 Protocols
Investors do well in their main cycles but fail to keep up the momentum in the later cycles. The metagame changes or investors get out-innovated. Understand that people’s so-called blue chips this cycle might just be the next cycle’s STC. Always have a thesis, adjusting accordingly.
9. Build an Extra Income Stream
More money coming in means more dry powder to buy the dips.
10. Beat ETH / BTC
The goal should be to outperform ETH and BTC as an investor. So measure the portfolio in those rather than USD. If investors can’t do it, then it’s easier just to buy ETH / BTC.
Media Contact
Company Name: Bixin
Contact Person: Marco
Email: Send Email
Country: Singapore
Website: bixin.com
