The 3 Ways I Will Recover my Crypto Losses From the 2022 Bear Market

Have you lost half your money from this massive bear market drop as I have? If you’re a crypto investor, I’m sure you’re feeling the pain, and wondering if you’ll ever financially recover from this crypto bear market.

Just remember, bear markets always end!! As Tony Robbins says, “financial winters don’t last forever, and soon spring will be upon us”. So this too shall pass.

As one tweet said about Bitcoin that I keep as my mantra is: “If you can’t handle the 50% drops, you don’t deserve the 200% gains” So to start, hold steady and I’m keeping my short-term emotions in check as this is a primer in recovering my crypto losses.

Now let’s dive into the 3 tactical ways I will recover my crypto losses from the 2022 bear market!

Number 1: Don’t Sell Good Crypto Investments

1. As mentioned, I’m handling my emotions and not panicking. Exercise patience is key. And remember, bear markets always end, so best to take advantage of every single one of them. It might sound terrible to say, but you need to keep investing when your investing account is down ~50%, as that is exactly what is needed to get off the “buy high, sell low” investment strategy you’re on right now.

2. Spend time evaluating the true value of each crypto coin investment. Some angles to investigate are:

• Keep the ones that have real value. Consider adding to these positions.
• Start thinking of selling ones that are hollow and pure speculation.
• Research project utility for a real-world use
• Research project team and their track record

3. It’s not a real loss until you sell. Don’t sell everything out of panic. Only sell the real long-term losers

Number 2: Use Dollar Cost Averaging

1. Don’t time the market bottom. Use DCA to invest going into the bottom, through the bottom, and while the initial rises occur.

• Supply is higher than demand in bear markets, confidence is low, and prices are falling. For novice or beginning traders, bear markets can be challenging. Furthermore, predicting the conclusion of a bear market or finding the exact price bottom to ‘buy the dip’ is challenging.

2. Choose an amount that will cover a consistent investing schedule, $10/d, $1000/month, $100/d, or $5–10,000/month.

3. Automate the investing process once decided on the Dollar-cost-averaging amount

4. Invest in only the most dominant crypto coins to reduce risk. Invest in more than one crypto to diversify the portfolio, but don’t over-diversify and dilute the portfolio positions. We recommend going with the two biggest cryptos, and not any more than 5 positions in total. But sticking with the two mains ones is best:

• Bitcoin — Feb 2023 price ~23,000 USD, last all-time high (ATH) was ~67,000 USD >200% potential upside
• Ethereum — Feb 2023 price ~1,600 USD, last all-time high (ATH) was ~4,800 USD — 200% potential upside

Note this point from Twitter user DeFi Edge when he interviewed Guy Swann about what advice he would provide to traders who are experiencing the crypto bear market for the first time.

“Guy Swann put buying Bitcoin (BTC) at the top of his recommendation list to bear market newbies in a comment to the discussion. Swann also advised traders to keep their own keys, disregard market prices, and stack periodically.”

Number 3: Keep an Abundance Mindset

1. Keep looking for opportunities. Accept the current reality, but don’t let it cloud your future. Also zooming out time horizons helps keep things in context. Bear markets allow one to buy lots for not much, in contrast, bull markets don’t get much for a lot of money.
2. You’ve just lost a significant sum of money in a terrible deal. You’re still hurting from the repercussions, and you’re hoping to generate enough money from your investments to make up for your losses.

While this is an extremely emotional moment for you, it is critical that you stay calm. Yes, you have lost some of your investment and money, but that is all the more reason to take it slowly. Control your inclinations at this time; don’t make hurried or reckless deals since you could simply make things worse.

Keep in mind that every trader has terrible days and loses money in the markets. And it is acceptable, if not necessary, to cease trading at that moment. Make a note of your losses and stop trading for the day.

It’s painful to have lost money in the crypto market, however, this bear market will make millionaires. So the question is, do you want to be one of those who can claim that by staying in the market? Armed with these 3 ways to recover your losses, the chance has increased dramatically. So how did you like these strategies? Is there any I missed? Let me know. And feel free to read more of my articles or watch the related video down below. Till next time :)

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