Spend time researching
When prices fall, investors tend to follow financial instruments closely, sometimes unnecessarily. Still, it’s a good opportunity to do some research. See the article: Opinion on the crypto Cosmos (ATOM): what future and prediction for this token?. It is more interesting to spend your time studying financial instruments and strategies adapted to bear markets. So you can make discoveries.
Also consider looking for instruments that have held up the most to falling markets. It would be possible to add them to your portfolio.
Do not be anxious about the liquidation of your positions
Managing emotions in a bear market is difficult. According to several experts, this is the most difficult aspect, even for professional traders. See also: JPMorgan: Bitcoin Reveals ‘Biggest Challenge’ in History and Surprising ‘Fair Value’ of BTC Price. People who fail to control their emotions will be unable to profit from their investments.
Examine why prices have fallen, dig deeper into the causes and find your own solutions. Consider whether your conclusions are still relevant in light of market developments. Rethink your short and medium term strategy.
Diversify your portfolio
Invest in a variety of crypto assets to diversify your portfolio.
There are already more than 18,000 cryptocurrencies. No one can say for sure which cryptocurrency will rebound. See the article: Ethereum Rally 1x! The price of ETH will reach this level by the end of 2022. Find out here how and why?. It is also difficult to predict how long the bear market will last. That of 2018 lasted 1 year and 4 months.
In addition, investor strategies are particularly suited to falling markets. It is in particular the case of the DCA.
If you are distressed, you may need to reduce the size of your positions, which reduces your exposure.
💎 How to invest in EU, US and Asian stocks?
Be vigilant and consult your financial adviser before making any investment decision. Mirror-Mag cannot be held responsible in the event of bad investments. Before using any third-party service, you should do your own research.
Alm Maye has been a trader and analyst since 2013. He is an expert in equity markets, Forex and cryptocurrencies. He is the creator of Almvest.com and Imveste.com, two sites dedicated to personal finance. He participates in the development of feature articles on specialized sites such as Actions-boursieres.fr, as well as the international network of Finixio.com.