What you can do in a Crypto Bear Market
The 20th November has always been an interesting day. Over the years it has seen the Roman emperor Diocletian ascend to power, it has seen the infamous Nuremberg trials, and it has seen the world let out a deep sigh of relief with the conclusion of the Cuban Missile Crisis. In 2018 it also saw Bitcoin plummet another 30% in value.
If you didn’t already realise, this means Bitcoin, and crypto as a whole, is currently experiencing a bear market — in this case a sharp decline in value.
But what does this mean for you? In the most basic terms, it gives you three options, much like any other market:
- You can sell off your assets and suffer no further loss of value;
- You can hold on to your assets in the hopes that they appreciate in the future;
- You might feel confident enough in market fluctuations and a future rise that you buy more assets and see the pay-off at a later date.
Let’s explore these options further.
Selling off your assets
The first, selling off your assets, may at first seem like a sensible course of action. In shock at the dip in value, and worried that it heralds further depreciation, you may think that the best course of action to save your investment would be to offload your assets now, so as to make the best of a bad situation. But, if you pause and think a moment, this is suddenly not as simple as it sounds. By selling off your crypto at the bottom of a price curve, you can be sure of two things:
You won’t lose any more money off that particular purchase.
You’ve just resigned yourself to a major loss.
As many of us know, depending on the crypto you own, some exchanges can be tricky and frustrating, as is often the case, the delay from pressing ‘Sell’ button and the execution taking place can be a painful experience as you watch the value spiralling downwards.
Another problem is that as things stand, very few places either online or physically offer crypto holders the opportunity to spend their assets like currency. Wouldn’t this be a great way to sell? There have been attempts by various companies (no names!) to make cryptos spendable, but none so far have been efficient. Existing means to ‘spend’ crypto still require a lengthy conversion to fiat before their use at a point of sale machine.
But we’ll come back to this soon.
Now, if you’re absolutely sure you want to sell, then go ahead — it might actually be the best course of action! However, if there’s any, any chance at all that you these assets might go up again, then you might just want to consider our next option, holding.
Hold, aka HODL
Holding your assets in this period can be a tense experience. You’ve already made the decision to buy them, but uncertainty can still creep in. Will the price rise again? Will it fall further? These are the two possible outcomes facing you and there’s nothing you can do about it.
What you need in instances like this is an incentive. A reason to hold on to your crypto amidst market volatility.
Let’s imagine you’ve invested your money in crypto. After your purchase, you’re now at a loss! Unless the tokens/coins you bought offers some utility, you’re completely at the mercy of the market.
Before we suggest a possible solution to this dilemma, let’s quickly go over our third point.
Buy more!
Buy low, sell high — that’s the investor’s mantra. The current dips in price might lead you to consider buying more crypto because in the case of a price rise, the more assets you have, the more profit you’ll make. You should only really consider this if you’re a seasoned investor with a suitably diversified portfolio, however, and invest only as much as you can afford to lose; the volatility and uncertainty around crypto and bitcoin in particular do not make them safe purchases.
However, if buying isn’t for you, then Zeux might just be able to help you with the rest.
The Benefits of Zeux in a Bear Market
So to return to the original options laid out at the start of this article, Zeux will offer you a way to both sell, and viably hold, any crypto assets in your possession.
Selling
Zeux offers competitive rates for selling your crypto so you can make the most of the value of your cryptos.
Holding
And if holding on to your crypto is what you’d prefer, then Zeux is providing that utility to help you in the event that you decide to do something different with your investments. With Zeux, by holding on to your cryptos in a bear market, you will get to enjoy access to pre-existing Zeux services like foreign exchange, investment opportunities at competitive rates. This means great value for you.
