A bear market is generally described as the period when a market's share prices face a security price or commodity price drop by 20 percent or more.
The year of 2018 constantly observed a bear market for Bitcoin and it has not completely regained its rightful place at the throne since then. And for every crypto enthusiast who is still waving the flag and bearing the brunt of the wave brought forth by the various Cryptocurrency Exchange Platforms knows that crypto is not just a matter of digital money trading any more. It is about survival.
Enduring a bear market phase takes a lot of courage and getting through the market while gripping on to every single penny one owns wins our respect. So, here are some handful tips that we deem worthy for one to survive a bear market and be better equipped for everything that will follow.
Bitcoin's Drastic Topple
The thing about bear markets is that initially although it just comes as a slight shock to some but while it persists, it can end up getting to the best of the crypto market individuals who take a lot of crypto hits every day.
And this is justifiable considering there are a lot of stakes riding high on Bitcoin and everyone who is deeply invested in BTC believes that the value should either increase or at the least maintain its stability on the charts of linear equilibrium. The previous eight years have seen a considerable increase for profits by Bitcoin so everyone still believes that, that is going to remain the same.
But what one should remember is that in realism, nothing is linear or consecutive for long. Not even Bitcoin. Also, if Bitcoin were to be that steady always there would be no need for anyone to work; everyone could earn a quick, palpable buck by Bitcoin exchanges. Sadly, that's not the way things work.
The Woes of a Bear Market: Why We Don't Like It
Bear markets can take a serious toll on someone's crypto-fascinated brain. The first reason being that bear markets "bear" a lot of financial burden. And for the unlucky ones who cannot afford to lose their position are put in a stress-worthy situation.
And on top of that the same financial burden makes it easier for us to figure out our second reason and that is social burden that is packages along with the bear market. Hearing your peers dish out unneeded crypto rants is even more burdensome than hauling around that heavy crypto baggage.
And at last, the third reason is the lesser chance of scoring money when the bear market phase is going on in the crypto industry due to which a lot of start-ups have to put their business plans on hold. Basically, all the drains that pour in money have to put a stopper on them.
The Pros of a Bear Market
Bear markets are not entirely bad. The first reason is probably because the bear market cleans all the rubbish left over by unnecessary divestment brought forth during the wake of a bull run.
Secondly, the run of bear market shows everyone the true colours of an Online Cryptocurrency Exchange and what really matters giving way to the rise of a smarter market.
The third reason is that bear markets put one on their toes and teaches them the ropes of heavy work preparing them for every tumult to cross their path in the future.
And finally, the fourth reason is that bear markets strengthen one's overall character.
The Final Take
Much like bull runs, bear markets are just as important as they bring the industry and everyone associated with it back on their toes. Moreover, from resources to market value, everything is reinstated back to more or less exactly what it was before leaving everyone in its wake thriving and striving for more crypto profits.