Disclaimer: The ‘Industry Talk’ section contains contributions and insights from people active in the crypto world and is not part of the editorial content of Cryptonews.com.
The cryptocurrency market is down 0.5% in the past 24 hours, bringing it to a market cap of $891 billion. The market is up 2.3% in the past week, but is down 15% this month, 31% in the past six months and 62.6% in the past year.
You can’t escape the fact that we are in a bear market, especially since Terra and the crypto exchange FTX collapsed this year and trading activity increased from $300 billion per day (2021) to around $50 billion in the last quarter of 2022.
The opportunities for big gains in the market seem to have disappeared due to the bear market, yet analysts and traders have shared tips on how to survive the crypto bear market over time. From spreading risk with a diversified portfolio to the dollar cost averaging strategy, here’s how to stay afloat as a bear market trader while still having opportunities to make money, especially if the market rises again.
Diversification is indeed always applicable, it is always useful for traders to vary their portfolio to reduce risk and gain more options.
Of course, everyone understands the word ‘diversification’ differently. For some, this means not putting all your money in one coin, and for others, it means holding many different coins and possibly other assets, such as non-fungible tokens (NFTs).
Ran Neuner of CNBC gave an example of a $1,500 portfolio that was split between 15 different cryptocurrencies. With, among others, Bitcoin (BTC), Ethereum (ETH) and Arweave (AR), it was primarily important to invest as much as possible in coins with a solid foundation and at the same time have a good balance in several smaller sectors of the cryptocurrency market.
Many investors do not want to complicate their portfolio by buying 15 different cryptocurrencies at the same time, but it is about the principle. Because a bear market can do more damage to a currency, it is difficult to determine which of the coins will rise the fastest in the next bull market and which will collapse completely.
Dollar cost averaging
A question that is asked over and over again during bear markets is “have we hit bottom?” This is especially the case during the bear market this year, because now we were apparently at a bottom, which has fallen to another bottom, and so on.
Traders can never really be sure when the market has truly bottomed. The same story applies to the peak during the bull market, you can’t predict it. Still, during the bull market, some traders believe the good times will last forever.
The savvy long-term investor is not as concerned about the top or bottom because he uses dollar cost averaging. The investor regularly makes small investments in one or more assets, such as $100 in bitcoin each month instead of $1,200 all at once.
If you keep doing this no matter what state the market is in, then you don’t have to worry about the top or the bottom. Dollar cost averaging is generally a safe and smart long-term strategy.
You wouldn’t think of presales during a bear market, but you can combine the above strategies with investing in presale crypto projects with a strong foundation and therefore a high chance of being profitable and with the above strategies you keep the risk low.
Even during the bear market of 2022, there have been presale tokens that have skyrocketed after being added to a central exchange. Early investors of Tamadoge’s (TAMA) presale in September saw a 1,800% gain in October after the token was added to OKX.
Of course, not all presales will achieve this result after their initial addition to an exchange. Still, it’s useful to keep an eye on presale projects and research each new coin’s project and team. In this way, you can get a small impression of how successful a project will be.
As an example, here we have three presales that are very promising and currently still ongoing, each of these presale tokens is based on a strong team and an impressive roadmap.
Dash 2 Trade (D2T)
Dash 2 Trade (D2T) is an intelligent trading platform on the Ethereum blockchain that provides traders and investors of all levels with real-time analytics and social data to help them make better decisions in the market.
The initial token sale, D2T, has already raised more than $7.7 million and will soon enter its fourth and final phase. After the presale, the token will be added to BitMart and LBANK Exchange. Investors who get in early can therefore reap a lot of profit from Dash 2 Trade.
Visit the Dash 2 Trade Presale here
Robot Era (TARO)
RobotEra (TARO) is a new sandbox metaverse where players can help rebuild the destroyed planet, Taro. As a player, you can control your own robot, buy NFT properties, manage it and decorate it with buildings and other in-game objects. In the first quarter of 2023, the alpha test phase will go live. RobotEra wants to allow players to connect to other metaverses to create a multiverse where NFTs from different metaverses can be used.
The native token, TARO, is available in the presale at 0.020 USDT, but this price will increase to 0.025 USDT in the next phase of the presale
Visit the RobotEra Presale here
Calvaria (RIA) is a new game to earn battle card game where players can collect, trade and compete against each other. Despite being play-to-earn, it will be free-to-play, so you won’t need to invest cryptocurrency to participate, but you’ll get the full in-game experience. This may make Calvaria more attractive to players who do not want to invest in cryptocurrency and NFTs.
The native token, RIA, is used in the ecosystem to purchase in-game items and bet, making it a good use case from the start. The token has already raised $2.1 million in pre-sales and is now in its fifth and final pre-sale phase. You can exchange 1 USDT for 30.77 RIA tokens in this phase.
Visit the Calvaria Presale here