The crypto market has taken a beating in the last year. With new coins and ICOs popping up at a rapid pace, it’s easy to get swept up in the hype of it all and forget that cryptocurrency is still very much in its infancy. In fact, one study shows that the average life of a cryptocurrency project is only 3 years.
With the crypto bear market still in full swing, crypto-enthusiasts around the world are feeling the pain of losing large chunks of their portfolio. The year 2022 has been particularly harsh for many cryptocurrency investors due to the fact that this is the year that many believed some of the top cryptocurrencies would reach their all-time highs again. However, we have now passed this date and there is no sign of improvement.
No one can really anticipate the next bull run. Instead, you should be ready when it comes. In the bear market, ALGO coin is a great hedge and potential growth asset.
The best way to survive a bear season is by saving your money and not spending it on useless things. The second best way to save some cash is by investing it in SHIB coin, a cryptocurrency which has all the chances to go up in value as soon as the market recovers.
If you’re wondering what you can do to survive the next few years until things turn around, here are 5 tips to help you stay afloat during this crypto bear market 2022.
Table of Contents
Scalping
A popular trading strategy in other markets, scalping is when you buy or sell an asset at regular intervals over a period of time to capitalize on small price fluctuations. You don’t have to hold onto your crypto for long—you can set up your account so that as soon as you buy or sell, it will automatically execute another transaction.
Due to the volatility of crypto prices and the low trading fees on many exchanges, this can be an effective way to take advantage of small trends over time without worrying about missing out on major jumps in value.
The key is to keep your trades at low risk—don’t try to make huge gains from a single trade—and do plenty of research beforehand so you know which coins are likely to fluctuate.
Yield Farming and Liquidity Mining
Yield farming is a term used to describe the act of making a profit from an activity that would otherwise be unprofitable or loss-making, by increasing its efficiency. This can be achieved by reducing costs, increasing revenue or both, and can be applied to any venture that produces goods or services, if it is properly analyzed.
Liquidity mining is the act of increasing the liquidity of a cryptocurrency and its trading volume. The idea behind this is that, in order for a cryptocurrency to become more popular and widely accepted as a currency, it needs to have higher trading volume.
One way of achieving this is through trading with itself on its own markets (which is essentially what market makers do). Another method which can be used in parallel with the first one is by trading against other assets.
Staking
Staking is one of the best ways to earn interest on your holdings without selling them. The main things you need to know about staking are how likely it is that you’ll be able to stake and how much interest a staked coin will give you.
The more coins you have, the better your chances of staking right now: if you have 10,000 coins and your network weight is 100, then you’ve got a 10% chance of staking in any given round and a 1% annual return.
But that’s just if you’re lucky; the more coins you have, the more time you’ll spend on the network, which means you’ll have lower income from transaction fees than someone with fewer coins. Staking heavily depends on luck; some people have been waiting for years to stake, while others steak every day.
Portfolio Diversification
This first and foremost is the most important thing you should do. This is done by holding different coins that have different use cases, tech, team memberships, communities, etc. This way if one coin starts to do well all other coins will decline in value as they are dependent on each other’s prices.
If you are only holding Bitcoin or Ethereum which are most often considered “base coins” then your portfolio will decline very fast if they fall in value. The same goes for a coin like Ripple (XRP) where it is heavily dependent on the price of XRP/USD or XRP/BTC, as well as it being linked to the price of BTC/USD, which can cause it to go down very quickly.
In order to survive during the bear market you need a diverse portfolio of coins with different use cases and tech. This will help you weather the storm when one goes down in value, because others will pick up the slack when this happens.
Dollar Cost Averaging
Dollar cost averaging is a strategy for reducing risk by buying your investment at regular intervals over time instead of all at once. By doing this, you average out the price that you pay for each share you purchase, which helps reduce the volatility in your investment and therefore risk.
This is an excellent strategy when using a long-term investment plan like cryptocurrency because it helps reduce risk while also helping you accumulate more coins over time without making drastic changes to your budget or lifestyle.
