It’s a great question, can anything good come from a bear market? The current bear market of crypto has many people on the edge of their seats, postulating around future prices, potential swings in price/value, as well as the forecasted plunge of invaluable tokens. These predictions make for interesting times as we all wait for a large market change.
It’s tough to gauge how long exactly the bear trend will continue for, some say things are on the precipice of an upswing. According to Azzad Asset Management bear market’s often last 15 months as the dust settles from market corrections, which would suggest that the crypto market is not out of the woods yet when it comes to a trend change.
The good news is these bear trends won’t last forever. Markets do recover and trends do change. So how do you prepare yourself as an investor for when the markets turn around?
Learning to spot indicators of market activity can help you capitalize on investment opportunities, specifically those which are long-term investments. When the market is down many investors are on the hunt for investments that have potential to grow before anyone else, allowing them to get in on the ground floor. Do your research to find those opportunities, if any, that will pan out in the next few years.
Remaining tentative as an investor in a bear market is also completely acceptable, there is no sense in investing your money in something you aren’t sure of and that you don’t believe in. While there are opportunities to seek out potentially profitable investment opportunities, playing it cool and simply waiting to find something that makes sense to you and your money can be the right move.
Taking stock of current trends, innovations, and recognizing patterns and the general movement of a particular asset can also be hugely beneficial to your portfolio. If you happen to notice that certain companies in certain sectors are all moving toward a centralized methodology, seeking out the largest most stable provider of that service may be something on your radar.
In the end, all investors choose in their own way. Some are more risk-averse, others are more aggressive. Take the time to find out what kind of investor you are and look for investment opportunities within your own lane. Work within a budget and always exercise proper risk management!
Through Hedge, traders who have been in the game for a long time, who have proven track records and intelligent strategies, can post their trade predictions in our Blueprint marketplace for other traders to learn from. Hedge is creating a marketplace for top quality trading predictions and information so that anyone can learn their way through the bear market.
For more information on the Hedge solution visit hedgetrading.io