Some ways to survive the bear market this 2022

The biggest concept of coins dying in a bear market is looking at projects from the perspective of companies. It's not perfect but it's a good analogy here.

When the economy goes down, and people start selling their shares, someone has to buy them. If the economy is crashing, you have asymmetric buy vs. sell pressure at an extremely high delta resulting in very strong decreasing prices.

Now with crypto, it's the same concept, but why would a project die and not just bounce back? Well, interest just like companies can go bankrupt, projects can get abandoned. Whether due to a lack of interest or core developers no longer being able to sustain themselves, projects get abandoned. Sometimes this change in interest from developers causes mass stagnation, and as new projects come online with better technology, the old projects rot and become less competitive, leading to lower prospects, and thus death over time.

• Have a Clear and Long-Term Perspective

Cycles like these are not uncommon, especially in crypto. There have been numerous crashes before where bitcoin has fallen over 80% from its previous all time high. For those that can weather the storm, good times will come again. Especially with underlying technology that has so many different applications, one knows that blockchain will come back stronger than ever.

• Use Dollar-Cost Averaging to Your Advantage

Dollar-cost averaging is an investment strategy wherein investors divide a fixed amount they are planning to invest in and then invest money in a specific asset (for example, a stock or a cryptocurrency) at regular intervals, whether the crypto market is up or down. During the crypto bear market, this is one of the best strategies. You can use a Cryptocurrency Converter Calculator to make things easier to calculate on your end.

• Find projects with growing ecosystems and perks

Projects that help token holders earn via staking, liquid staking, borrowing and yield farming are also worth considering when the market turns bearish. DeFi and CeFi platforms would be a good starting point if you want to explore these options. Some popular ones are Celsius, Yield App, Nexo. A lot of people miss out on high APY’s just because they are more focused on meme/altcoins when we should be focusing on stablecoins instead.

• Don't panic sell

It's extremely tempting to try to cut your losses when faced with huge price drops. But if you do, you won't benefit when prices start to increase again. Moreover, selling after a huge drop flies in the face of the oldest rules of investment: buy low and sell high. Granted, this is easier said than done as it can be hard to time the market. But selling at a loss will lock in your losses.

• Research before buying the dip

If you don't have cash to spare, already have a high exposure to crypto in your portfolio, or don't have time to research which cryptos to buy, don't try and buy just because prices are low. The biggest danger is that people get excited about the idea that crypto is "on sale." As a result, they may spend money they weren't planning to invest in crypto.