How to Behave in Crypto Bear Market

The popularity of cryptocurrencies attracted everyone, the progress made by crypto assets in our financial life is incredible, whether users understand crypto assets in detail or not but they all recognized the value with social experience, many of the users have the dream to getting rich overnight, therefore, they fall into the pit blindly, the crypto assets are highly speculative assets, if you want to dig the fortune from it, the best answer is to make a long term investment plan, clear your knowledge about the decentralized wallet, smart contracts, and the trading platforms, every entity in the crypto world have their own pros and cons, investigate the trading platforms reputation, verify the smart contract age and the numbers of users engaged with, always careful before to handed over your crypto assets to the third party, there are many stories of users who lost their funds due to deceiving or stolen by some scammers.

If you do not develop good investment habits and make mistakes then you have to face serious consequences yourself, if you do not have an investment background or you are from the circle of traditional market then try your best and avoid such behaviors that have a high probability of causing errors, as an investor you have to effectively reduce the probability losing your funds.

Pay Attention to Short-Term Fluctuations

The volatility of crypto assets is affected by many factors, a single factor cannot determine the direction of the crypto profitability it is obvious that multiple factors interact with each other. The fluctuation of the crypto assets is not purely random, but it is difficult to make accurate predictions under the existing crypto market. Therefore, do not try to predict short-term crypto fluctuations. This is tantamount to tossing a coin to guess the positive and negative.

Bear Market Depends on the Market Sentiment

According to the principle of reflex, whenever market sentiment reaches its extreme height, an inflection point must appear. Many experts including Buffet suggest that even if everyone in the market starts selling, you don’t follow, because the best time to sell is before the crypto market crashes not after when everyone tries to cover their losses.

Whatever your crypto portfolio the advice is the same for every crypto asset. You should check your crypto investment portfolio. When the overall mood of the crypto market urges you to follow, you must look at the crypto market calmly. Most of the time, assumptions and emotional guidance should be the opposite of the right path.

Avoid the Single source of the information

The analysis of crypto investment targets must be comprehensive, and investment decisions cannot be made with only a limited amount of crypto market information. For example, currently, El Salvador makes Bitcoin legal tender, this news not as comfortable to invest in the Dogecoin if you only use single information to evaluate cryptocurrencies, then it is actually one-sided, you do not know the side effects of this news on the overall crypto market.

To invest in cryptocurrency, one must pay attention to the relevant information from multiple sources. Decisions made by echoing news are like a blind person touching the elephant, and this knowledge often partial. When you collect the crypto market situation, you strive to be comprehensive and focus on the objective and you must prevent partial listening and dark situations.

Don’t Make Comparisons

Due to the highly speculative nature of crypto assets many investors show impulsive behaviors stem from comparison, like in a previous bull market the performance of one’s own target is much lower than that of the other investors in the crypto market. In fact, the general fundamentals of the crypto market have not changed, but the crypto market trend is different most of the investors make mistakes at this time, therefore, don’t make comparisons, always believe in your firm logic.

Source: https://medium.com/cryptocurrencies-ups-and-down/how-to-behave-in-crypto-bear-market-6883d8382620?source=rss——-8—————–cryptocurrency