Bear markets are brutal and boring. Here's exactly what to do!
Reflect on your previous investments: Why did you choose project x in the first place? Did you even do enough research? It’s time to dig deep into the project’s roadmap to see how well they’ve done, where they’re at, where they are going next… Have they stuck to the timeline? Have they made significant progress other than price? Analyzing these metrics helps you reassess your conviction and see if you need to keep believing in them or reallocate.
Swear to take profits next time: Remember how good you felt with your swollen wallets? Look at you now - given back 60% to the market. A lot of traders/ investors fail at this - including me. Many keep giving back $0000 to the market every bear season. Apparently, you’re going to shed some of your profit because no one ever knows the top. However, the goal should be not to shed too much to hurt your portfolio.
The next time you feel like you want to show off your portfolio, take profit and forget about the market.
DCA into Blue chips: Dollar-cost averaging is a very powerful investment strategy. And Blue-chips don’t shed as much as the other micro caps. DCA into them as prices go lower. It’s time to stack up quality stuff Fren. Forget about bulk buying the bottom - you won’t.
Erm.. but LUNA was a Bluechip no? Right.. Find the rest. No need to sulk.
Need clues on blue-chip cryptos? Look at the industry leaders in the different trending narratives, L1s, L2s, etc.
Upgrade your research skills: Fundamental analysis is a crucial part of picking gems. Improve on it. Dig deeper into thriving ecosystems that seem to be providing improved solutions upon existing ones. Ones that are solving real problems. Learn to read/follow whale wallets to know what they’re buying before they shill. Dive deeper into “onchain” and learn how to analyze data effectively. Remember, everything on the blockchain is transparent. Use it to your advantage.
Learn a high-income skill relevant to the ecosystem: If you really love the ecosystem and want to benefit richly from it, the bear market is the best time to upgrade your skill. Take 6-10 months off to learn coding, design, copy-writing, and other skills that are relevant to get you from consumer-builder. I’ve mentioned in one of my previous newsletters that builders are more incentivized, hence, their conviction is stronger. Increase your conviction by becoming a builder.
Find ways to increase your income: Can’t emphasize this enough! The bear season would be a waste if you can’t find ways to increase your income off the market. If you rely solely on the market, you’re going to end up selling your assets in losses to pay your bills/debt.
Get a side hustle, start a business, get a job in the ecosystem. Earn more so you can have the purchasing power to leverage the insanely low prices offered by the bear market.
If you want financial freedom in crypto, this is basically the template.
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B.Alpha