Survival & Accumulating: Should You Experiment During Bearish Situations?
The massive dip continues and people are beginning to wonder when this will be over, are we going to see 20k BTC? or is it a $0.5 hive once again? These questions and inclinations are creating actions, people are making moves under the radar, some are out of fear, others are intended towards safety, and some of these actions are tailored toward accumulation.
It's hard to see people with steady emotions during bearish situations. Sometimes people are of the illusion that they can hold the line, but when the dip becomes unbearable, panicky tendencies sets in and they begin to make moves. It's possible to influence not just "weak hands" but almost everyone can be vulnerable.
People are coaxed into investing in projects they've hardly done their research on all in the name of diversification or stability. You hear things like "oh coin x is cheap, so I had to take advantage seeing it's 10 cents"
Is there a catch?
The truth is, it's not every project or coin that's cheap that will eventually go up. One of the reasons why we're keyed into these decisions is because of the emotional appeal it brings.
I mean... There's the dip in the market, it makes perfect sense to buy into projects that are dipping, accumulating them, and hope it could do 1000x to prove that we're investment gurus, not just that, but bring in the cash as well.
Sometimes, out of the intent of being safe, we embrace diversification. The previous bull season has taught many the lessons of their lives and now they're itchy to invest in projects, they're eager to start building for the next project rather than stepping back a little and defining their goals. For example, I have two solid goals during the bear market; survival and accumulation.
Well, you'd need to survive before you can technically accumulate
........especially when you don't have a big bag. Now having a big bag is having the financial power to back up your experimentations, during the bear, every asset are dipping and it's technically the perfect time for projects to call themselves "the next big thing".
Some people are wary of losing out on these potential big things, hence their decisions to invest are technically backed by their fear of missing out on these potentialities rather than making a solid and prospectively wise decision. We have to consider the fact that this isn't bad.
Some of the most stupid decisions in crypto can turn out to be good, especially with the element of luck. But we cannot always rely on luck. During the bear, survival is key because of the limitation of resources.
The Price For Survival
However, we shouldn't attribute this scarcity to 100% of crypto owners. I'd like to say that if a person has enough resources then the best time for experimentation is during the bear market where you can relatively pick up gems for very cheap rates. It could go both ways, but then bearish situations shouldn't be a time to experiment if you have limited resources.
I was telling a friend three days ago that the bear market is not for experimentation. It's all about surviving and making inch-perfect attempts at accumulation for the next bull season.
It's important to recognize the coins you already trust to do well, stack them up as much as you can and keep building. People can survive off the money they're using for experimentation and this is why is good to stack where it matters.
In conclusion
I've sold some of my assets. This is particularly because I don't see a future with these projects. I've recognized the assets I want to build very early and this will enable me to hit the pedals.
There's one creative thing I've done lately and that was to buy HBD with hive when Hive was about $2. Now, I'm buying back Hive using HBD. I'm also trying to use my 20% yields to even buy Hive, but I wanted to wait to see if Hive has bottomed.
Even if it hasn't, I'm splitting all the HBD I want to use In buying Hive so that I'll be buying them every day until Hive bottoms out and begins to go up. I want to also convert the stablecoin I have to HBD for the yields, then use the yields to keep buying Hive, that is, depending on how long this dip would last.
Interested in some more of my works?
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How I Create Original Images for My Blog & Why This is Important
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Amazing. The bears are for building. People will run because of greed and the desire to make more. But for those that have been in the space and watching the market as they build relationships with coins. Will see the light at the end of the tunnel. A few months ago we all wished we entered earlier and now we are running from the opportunity. The key at this point is doing your own research and investing In tokens with bits you can afford to loose while positioning your self for the next rally. As you keep balancing
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Thanks for your comment. Well, building is relative and I use to implore people to build the best way they know how to.
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Very true and caution must be applied
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I have to agree you should be focused on minimizing losses during bear markets. If you lose 20% of your portfolio, you need 25% profits to go back to where you originally started. Especially when the trend is pointing downwards, you should be mindful of what you should do to keep your portfolio intact. If that means cutting off some of the riskier assets, then I would do so.
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I have actually cut off some of my riskier holdings and this is to prevent myself from incurring some unnecessary losses along the way. I think everyone should be planning to avoid losing unnecessarily survival is the goal if we enter a full fledge bear market.
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This should be the first bearish market that I am experiencing first hand. I am new to trading coins and I have been a skeptic of cryptocurrency for a long time owing to it's volatility. But, these days I am getting to see the comfort in the volatile nature and how to make it work for me.
I am not still completely full time crypto, don't have the resources to do that, but this bearish season seems like the perfect opportunity to learn by experimentation.
Dollar Average Cost (DCA) is a good method to handle this bear period.
Well, like you said you have to survive first 🥲
When you survive, stick to the DCA. Buy in bits when it get low, low, lower... follow the dip and be dipping your hands in the dip 😅😅
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This is never financial advice, crypto is volatile and so is the New York Stock Exchange. Any financial advisor would advise that investing money a person can not afford to lose is unwise.
That being said I have been on Hive for over a year and truly believe it is here to stay so in the bear markets I try to buy as much as possible. and now that it is so far below a dollar is the perfect time for me to increase my Hive Power.
Hahaha well it's the principle of investment 101. While there's always the inclination to do something rash I think we ourselves that's seen how the bear market works are the true OG.
I'm also aiming to accumulate and increase my holdings
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