How to Profit From the Cryptocurrency Bear Market
Cryptocurrency as we all know has made many individuals into millionaires and multi-millionaires in dollars as it has also cost some individuals their fortunes. Either way, we can see that the cryptocurrency market is the fastest-growing industry currently with lots and lots of opportunities presenting themselves every day.
Therefore, it becomes very important to know how and when to take advantage of these opportunities and use them to make yourself some good bucks, the cryptocurrency bear market is one such good opportunity.
Historically, there are a lot of factors to be considered which has helped a lot of individuals make their fortunes in the cryptocurrency market, some of these factors include; Timing, Token/Coin potential, Utility of the Crypto asset, Security of the cryptocurrency token project and so on. Among what we have mentioned, one of the most important factors is Timing.
This has a lot to do with knowing when to BUY into a cryptocurrency project and when to SELL off and take your profits. This particular factor is what we would be looking into in this article as we would be examining it thoroughly, as it is what has made a lot of individuals into millionaires and also made some lose their money, more or less we can say it’s double-edged when used properly would bring great yields and when used wrongly would also cause lots of loss.
When To Buy the Cryptocurrency
In the cryptocurrency market, there are always 2 times to BUY a token or coin, and they are at the launch of the token/coin or when the token/coin is in a DIP period.
Buying a coin/token when they have just been launched is actually always the best time to buy, this is after you have done your own research (DYOR) on the token/coin project, seeing the prospect by reading the token/coin whitepaper, convinced of the potential the coin/token holds, and you also trust the owners of the token/coin project, verifying that they are real and traceable individuals with a good track record. You can now purchase your token/coin.
Many tokens/coins always do an Initial Coin Offering (I.C.O) where they give out their tokens/coins at prices that are always way lower than when the token/coin is officially launched to the general market.
If you can buy into a totally legitimate token/coin cryptocurrency project at the time of their ICO then it is most likely going to be a great buy that would yield you some very good profits in the long run.
If you are able to buy a token/coin at the early stage of its deployment into the market, there is a high probability that you are going to make some good profit if you also get your timing right on when to sell.
The second best time to buy a token again is when the coin is in a DIP period, or the market is in a BEARISH period and the price of the particular token/coin has dropped tremendously.
DIP simply means the sharp drop or fall in the price of a particular crypto asset or even the general cryptocurrency market.
So if as an individual you have missed out on the first opportunity to buy a token/coin, which is when it is just launched to the market, and you are still interested in buying the token/coin, you just need to wait for the second opportunity to buy which is when the price of the asset drops massively, and then you can now purchase the token/coin, with an amount you can afford to keep tied down for a period of time.
Unlike the period of the token/coin launch which only happens most time once in a lifetime, the DIP period happens regularly, and that’s why there would always be BUY opportunities presenting themselves at certain periods, it is then left for you to take advantage of these Market DIP opportunities and Buy your tokens/coins to make a profit.
When to Sell
Just as knowing when to buy is important, knowing when to sell is also very important as this also determines how much profit you are able to make from the cryptocurrency market.
On some occasions, individuals are always able to get the timing for buying into a great project but still end up losing their money as they fail to know the right time to sell.
2021 was a very remarkable year in the cryptocurrency market, as there was a lot of market activity, there was a massive DIP period and there was also a massive Bullish/Rising period within this year, a lot of cryptocurrency owners and traders became millionaires while some also lost lots of money, why you may ask, this is because they failed to get the right timing to sell of their token/coin, even though they got the timing to buy.
To overcome this trap, you need to have a clear goal on what your profit target should be for whatever token/coin you are buying.
The first rule in trading is price cannot keep going higher forever, there must be times when the price would also fall, as people who have bought the assets would also sell off and bring the price of the commodity crashing down, and you won’t want to be caught in that type of market when you see your already recorded profit going down the drain.
Another rule of investing is patience, some people buy tokens/coins for long-term profit, and therefore are not bothered by the daily or monthly price changes, as they already have a clear goal on how long they intend to keep their investments before selling them off to take the yields.
This should also be your mindset as you buy into any cryptocurrency asset, have a long-term profit goal and target, minimum 5 years, and then use what you can afford to lose without any qualms to get them, after determining that it’s a trustworthy crypto project with great potential.
You should know that any great cryptocurrency project, would definitely give you some good profit after a 5-year duration. We can confirm that looking at projects like Bitcoin, Ethereum, and BNB, the list is endless.
In conclusion, getting your timing right plays a major role in your profitability as a cryptocurrency trader or investor, and this cannot be overemphasized.
The crypto market is currently in a bearish period and most of the cryptocurrency asset prices such as Cardano (ADA), Solana (SOL) Bitcoin Cash (BCH) Litecoin (LTC) have dropped up to 1000% since their peak period. Making it cheaper and easier for newbies to purchase them. This is not Financial Advice. Do Your Own Research (DYOR).
You can also look at the cryptocurrency asset with the highest potential here.