How to find a bear market-resistant token
When you choose to invest in crypto tokens, a bear market could be the last thing you want. This is when the market experiences a prolonged decline and prices fall twenty percent or more. If you have just purchased some crypto tokens, a bear market means that chances are great that you will lose money. Of course, you can decide to hold, but you will still have to deal with the insecurity of not knowing whether the prices will rise again. But does this mean that you shouldn’t invest in crypto tokens altogether? Luckily, there is a solution: GAIN tokens. This is a bear market-resistant token that will protect you against the price declines of a bear market, while you can still profit from a bull market.
The effects of a bear market
First of all, what is a bear market, exactly? Although many (amateur) crypto investors will have heard of the term, it is frequently used incorrectly. When the prices fall for a day or a week, many speak of a ‘bear market’. However, a market is usually not considered a true bear market unless the price has fallen 20% or more from recent highs. In a bear market, share prices are continuously dropping. This results in a downward trend that investors believe will continue. This belief, in turn, perpetuates the downward spiral as more and more people sell their investments. A bear market can be used to refer to a general economic decline or to the decline of a specific market.
If you simply buy crypto tokens, you are unprotected against the effects of a bear market. You hold some assets that have a certain value. If the value drops, and the market is flooded with pessimistic sellers, and the value drops some more because of that, there is little you can do. Your options are to sell as well and take your losses, or to hold and pray that the value will start rising again in the future. In both cases, a bear market might cause quite a lot of stress and maybe even a couple of sleepless nights.
GAIN: a token that will protect you
But what if there was another way? A token that is based on the principles of Hybrid Finance (HyFi), leveraging the strengths of both centralized and decentralized finance? Meet Gain DAO!
Gain DAO is a crypto-based pool. Currently it is starting out with Ether. The pool is powered by machine learning optimized trading algorithms. These algorithms are operating in traditional financial markets. Essentially, Gain DAO serves as a bridge between centralized and decentralized financial systems. This means that GAIN token holders benefit from the possible appreciation of the underlying base asset (Ether, in this case) and from algorithmic trading strategies. The algorithms are intended to grow the amount of crypto in the Gain Pool.
This means that assets are actively traded in the traditional financial markets. This strategy protects you as a token holder against a bear market in various ways. First of all, you are protected from a crypto bear market because the amount of crypto in the Gain Pool is actively growing, thanks to the trading algorithms. Even if the value of a crypto token falls, there is a good chance that the number of tokens will grow. This strategy acts as an efficient buffer against bear markets.
With Gain DAO, you are also immune to many adverse effects of traditional financial bear markets. Where human errors can lead to a loss of value when assets are held for too long, this risk does not exist with trading algorithms. Gain DAO’s algorithms automatically sell the assets when the value drops to a fixed point. Therefore, even in a general bear market you will be spared large losses if you opt for GAIN tokens.
Are you ready to start investing in bear market-resistant tokens? To learn more about Gain DAO and how we are pioneering HyFi, visit the links below and join our community on Telegram or Discord.
Website | Medium articles | Github | Twitter | Telegram | Discord | Facebook | Whitepaper
