How can the bear market benefit cryptocurrency traders?

Introduction:

The cryptocurrency market has faced substantial declines in the past several months. Some are wondering if the bear market will ever end, while others are taking advantage of the opportunity to invest and build their portfolios. Which side do you fall on? Here’s how the bear market can benefit crypto traders and what you can do to enjoy the opportunities it presents. 

The bear market helps crypto traders because it gives them an opportunity to invest while prices are low. Many cryptocurrency projects offer substantial discounts in an effort to increase the adoption of their tokens, so this is a great time to get involved with these coins and tokens if you haven’t already.

Less Competition

It may seem counterintuitive, but one of the best things about a bear market is that it reduces competition. For example, when Bitcoin was at $20K, we saw an influx of new users who had no idea what they were doing and many got burned (there’s a reason why 9 out of 10 ICOs failed in 2018).

Now that prices are well below where they were last year, experienced investors and seasoned traders know that there are more opportunities than ever before to make money. Cryptocurrency is still very much in its infancy and if you have decent fundamentals as an investor, taking advantage of a downturn could be what makes you rich.

Learn what doesn’t work

It’s essential to learn from past mistakes and no better way than through bitter experiences. Traders of any kind often don’t know what doesn’t work until they try it. Cryptocurrency trading is no different. Many who have tried and failed will say that they wished they had listened to others, or at least learned from past mistakes instead of trying it out for themselves—doing so would have saved them a lot of time and money.

After all, some losses are unavoidable; you might as well try to avoid unnecessary ones. A good trader knows that one small win isn’t enough to make up for years of failure; patience is key, especially when things get difficult. If you haven’t been in a trade before, ask someone with more experience how their trades have worked out. You should be able to find people on Reddit or Twitter who are willing to share their own experiences with newcomers.

The crypto community is generally very friendly toward newbies, and there's always room for more in our ranks! But remember: if anyone ever tells you they're sure about something—especially someone whose opinion you respect—don't believe them.

What to do when markets go down

This year has been bad for investors. In just a few months, bitcoin fell from $19,000 to about $3,500 in mid-December. Other cryptocurrencies have followed a similar pattern. The question is: What should you do when markets are down like they are now? You may want to look at your investment objectives and goals and evaluate if you still believe in your strategy. In 2018, it was a good time to buy value coins that were beaten down during 2017—these include coins such as NEO, LTC, and DASH.

If you’re looking to trade short-term, then I would suggest trading on news events or shorting cryptocurrencies based on their fundamentals. If you’re looking for long-term gains, then I would suggest buying value coins that are undervalued (or buying them now while they’re cheap). Cryptocurrencies are still in their infancy and will likely see many ups and downs over the next decade or so. We could easily see another bull run before 2019 is over. It will be interesting to see how things play out over 2018–2019!

Know your entry point and stop-loss prices

It’s easy to get caught up in a cycle of panic selling, which often leads to more panic. The best way to stay on top of your investments is not to overthink them. If you lose money—get over it and move on. Make a rational decision that best benefits your portfolio in both short-term and long-term time frames, and control your emotions so they don’t have any control over you. You should also set realistic expectations for yourself when investing.

While there are always exceptions, generally speaking, if you are expecting a huge return within 24 hours or less then you’re probably going to be disappointed. Stocks take time to grow and mature; even if you do everything right, there will be periods when you feel like things aren’t moving as quickly as they should be (or at all). Don't let these moments discourage or demotivate you; instead, use them as opportunities to reassess what's going well and what needs improvement.

Control your emotions, not your investments

After your portfolio loses value, it’s easy to get emotional about trading and make rash decisions. It’s important to recognize that markets fluctuate with volatility—there will be times when things are going up, and times when they go down. While sticking to a strict trading plan may help you manage your emotions, it doesn’t mean you should let fear get in the way of acting on opportunities. If Bitcoin or Ethereum is trading at $3,000 apiece but you believe they are worth $5,000 each over time, then buying some now could still be considered a decent investment—you just need patience.

There are also ways to invest in cryptocurrencies without having to buy them directly from exchanges. This includes crowdfunding platforms like ICOBox (for initial coin offerings) and ICONOMI (for digital assets). These services allow users to invest in a fund that trades cryptocurrencies on their behalf. By investing through these platforms, investors don’t have to worry about holding onto digital assets themselves—which simplifies their lives while also potentially increasing returns.

Conclusion

The crypto bear market is a great opportunity for crypto traders. During these times, new coins tend to become undervalued, and increasing trading volume helps fuel prices upward.

Since December of 2017, there has been a decrease in altcoin trading volumes, indicating that many have lost interest and moved on to other ventures. However, now is a great time to get in with coins at an all-time low because as soon as people hear about them again they will begin flocking back into altcoins.