70
One thing is for sure, no matter if it’s a bear or a bull market, none of these cycles lasts forever. Each bull market and each bear market will come to an end sooner or later.Knowing this, I am using the current cryptocurrency bear market to prepare myself for the next upcoming bull market. Here is what I am doing.
The Right Mindset
The most important preparation for the next bull market is to work on the right mindset. It is the essential groundwork. Everything else will then follow your mind.
This year had been extremely tough so far. The Terra Luna Ecosystem collapsed, and big lending companies like Celsius and BlockFi and even big cryptocurrency exchanges like FTX went bankrupt. Thousands, if not millions of users and customers have lost their funds, some even all of their life savings. As if all of this wouldn’t be bad enough, the prices for cryptocurrencies went down rapidly. Bitcoin is down 75% down from its previous all-time high and some altcoins are even more than 90%.
It is understandable that many investors are either frozen in Fear, Uncertainty, and Doubt or have already given up completely. That’s the pessimism of a bear. Well, we are in a bear market after all so the mood of the market participants is more than understandable.
The crucial thing to understand is that you need to replace this pessimistic mindset of a bear with an optimistic mindset of a bull!
If you let yourself go in pessimism now when Bitcoin is traded below $20k then you will probably be amongst those who FOMO back in when Bitcoin finally hits $100k.
Everybody knows it. It is “Buy low, sell.” But even though everybody knows this, most people tend to do the exact opposite. They FOMO in on the TOP of the bull market when prices are reaching new all-time highs. This is happening because humans are humans and they just follow their natural emotions.
The best time to invest in cryptocurrencies is now when prices are low and not during the next bull market when prices are high. The problem is that you are blind to things like this if you have a pessimistic mindset now during the bear market. With an optimistic mindset of a bull, you would recognize this. This is one of the opportunities that bear markets are bringing, cryptos at cheap prices. You are actually surrounded by investment opportunities in this disruptive time but without an optimistic mindset, you won't be able to see them.
Real investment opportunities can be found in bear markets. Later in the next upcoming bull market, it is all about protecting your capital. In other words: Have the optimistic mindset of a bull during the current bear market and the pessimistic mindset of a bear during the next bull market.
Have A Strategy
After you got your mindset right, it is time to come up with a plan that fits your current situation. For example, if you have some risk money aside to invest then now is the best time.
If you don’t have any savings at all or if you are back to zero because you lost your assets then you need to focus on earning cryptocurrencies. Keep in mind that the cryptocurrency space is developing extremely fast and all the crypto that you have lost can be earned back as long as you don’t lose your optimism during these difficult times.
No matter, if your strategy involves buying or earning cryptocurrencies, I recommend planning a diversified portfolio and not going all in on anything and only investing what you can also afford to lose.
Another proven investment strategy is Dollar-Cost-Averaging (DCA). El Salvador is currently practicing DCA when the President decided to buy one Bitcoin every day. It is a method that is especially useful for assets that are highly volatile like cryptocurrencies.
I have already written a detailed article about DCA on my blog on Publis0x in the past: “Dollar-Cost Averaging Strategy?—?Building Up A Crypto Portfolio Over Time” It is a great addition to this post to continue reading.
Invest And Accumulate
When your plan involves earning crypto then keep in mind that you can earn coins and tokens at a really good rate right now. Earn and accumulate as much as possible and then HODL but not forever, only until the next bull market. Don’t marry your altcoins and take the profit in the next bull market.
If you are a beginner in cryptocurrencies then Bitcoin and Ethereum are wise choices as both blockchains are considered well-established blue-chip coins. I consider both cryptocurrencies more or less safe bets in the long term.
However, real profit can be made with the right altcoins. I doubt that we will see a 100x in Bitcoin or Ethereum any time soon. The market capitalizations of both assets are already too high. With altcoins, such profits are still possible but of course, investing in them is also much riskier than investing in the TOP cryptocurrencies Bitcoin and Ethereum. Most cryptocurrencies that are currently among the TOP 20 cryptocurrencies will be gone in a few years.
To reduce the risks, you have to do your own research on a potential altcoin investment very carefully. When I DYOR, I always start by watching out for red flags. As soon as I spot one of these red flags, I know it is time to move on to the next project. You do this until you came to the conclusion that you found the next low-market-cap gem and add a little bit to your portfolio.
I highlighted these red flags in my previous post with the title “Red Flags To Watch Out For While Doing Your Own Research On Cryptocurrency Projects And Altcoins
My Final Conclusion
This is how I am currently preparing myself for the next bull market and I hope that I could point out why having the right mindset is crucial.
Of course, I am also interested in your strategy. How are you preparing yourself for the maturing bull market? Let me know in the comments.
Finally, I like to remind you that my intention in writing this article is not to replace your own research. I may look smart in my profile pic but I am not your financial sensei, so don’t take it as financial advice.
Thank you for reading and if this is the kind of stuff you like to read here on Publish0x, click that follow button.
If you like you can also follow me on
