Surviving The Bear: My Story
We get it. Bear markets are painful. These are not fun times to endure.
It is difficult to watch the value of our account plummet. Nevertheless, that is a way of life with the markets. They go up but they also go down. What brings about success is how we deal with them.
In this article I will reveal the difference for me between these bear markets. As will be shown, there is a way to benefit from the rough times.
When the last bear hit, I was probably about a year and a half into cryptocurrency. At that time, my holdings were growing steadily until that fateful January in 2018. That marked the onset of the "Crypto-Winter" that would endure for a few years.
Source
My Account
The long-term approach is something that I try to implement. Thus far, I have not been required to access my cryptocurrency to meet everyday expenses. Therefore, it is a bit easier to be a HODLer.
Nevertheless, it is something that is suggested to everyone. Here we will show the difference a couple years can make.
In January 2018, my total cryptocurrency holdings peaked at roughly $180,000. This was a nice sum to amass in a relatively short period of time. It was a combination of effort along with investing some money. The bulk, however, came from the bull run.
Of course, the holding dropped a great deal from there. I honestly have no idea what it got down to but I do know my actions did not change.
If we fast forward to 2021, there was a day where I went to bed with over $1 million in holdings. This occurred with HIVE not getting close to the high it reached back in 2018. It was offset by the fact that I hold a lot more HIVE than I did back then.
This is the key to long term success.
Keep Filling The Bags
Bulls markets will come and go. The same, obviously, is true for the bear. So we simply plug along, understanding what is taking place.
Many will say the best time to build is during the bear market. From this perspective, it means keep filling the bags. It is imperative that one focus upon pouring as much cryptocurrency into one's wallet as possible. The bear market is a great time for this.
To start, if one is investing fiat currency, the money goes a lot further. Basically, you favorite coins and tokens are on sale. Bitcoin was about 60% off from where it was at the peak. This is a pretty good deal.
The reason we do this is simple mathematics.
Let us say, you had 1 bitcoin when the price was $66K. That means your holdings of BTC was $66K. We will presume a purchase price of $20K, for a $46K profit.
Now let us say you add another Bitcoin at $30K. The holding jumps to 2 Bitcoin. If the price reaches the previous high, the total will be $132K, or a profit of $82K.
As we can clearly see, the second bull run is more profitable since our holdings are larger.
This is what filling the bags does.
Earning Instead Of Buying
While purchasing our favorite assets on sale is a wonderful approach, Hive offers an additional opportunity.
Since one has the ability to be rewarded for what is produced, there is the potential to fill our bags without laying out any money. This is the epitome of dollar cost averaging since we additions are at zero financial cost.
There are a large basket of options on Hive. We know that people earn HP and HBD from their posting activities. Curation of content also provides another payout for many. Then there are all the Hive-Engine tokens which offer up another layer of rewards. Financially, there are the games which can payout in cards and other assorted in game assets.
Almost all of this was beaten up (actually down) over the last 6 months. Everything is getting crushed by the overall market activity. That said, those who are looking at expanding their holdings will find themselves in the scenario described above. Having more tokens means a larger value once the bull returns.
This approach does require time and effort. It is what is being used in lieu of forking over money to purchase our favorite cryptocurrency. Most importantly, consistency is vital.
How long will the bear last? Nobody knows the answer to this question.
What we do know is that daily activity during the entire market run down will help to keep growing one's holdings. The overall market can be painful yet we can benefit in the long run.
This is my approach to surviving the bear. What is yours? Let us know in the comment section below.
If you found this article informative, please give an upvote and rehive.
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Same approach here but with different order of magnitude if I compare my peak of value with yours (LoL), I am powering up every week and building both, HIVE and HBD but also BTC
Bitcoin is also a good option
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It's always the best option
Everyone will have their favorite, mine is also Bitcoin
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It is the way to keep things moving higher. We can see how this will end up changing a great deal in the future.
Thus, those who position themselves properly will end up in terrific shape financially. It is a matter of playing the long game in my opinion.
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You are right to think long term, it is always the best, the market is very volatile, so we will never know when it is a good time to buy or sell.
So when I see that cryptos are down 20%, I start buying what I have available, and only to projects that I have 100% confidence, to fill the stock market I find it interesting to earn with the revaluation of cryptos but also with the staking, dividends or coins for playing games,
Hard to know when to jump in. That is why, when I buy, I break it up in 3 segments. Since I never know where the bottom is, I phase in.
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It is really awesome while earning to fill that space as well especially when experience deflation of price which will be more profitable when prices go up likewise utilizing the bear market as well to accumulate more tokens
Simple math. When the bull returns, if one is holding more, the result is that much bigger.
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A good idea is to keep buying Hive periodically in the fall, so when the value picks up, you get a good average price, you have to continue holding, until bitcoin reaches more than 100,000, by then Hive will be worth more than 10 dollars.
I am not sure there is a correlation but you could be correct. Hive was not that high when BTC was at $65K but anything is possible.
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I am one of those who have small account. I feel just creating content, engaging and being consistent bull or bear is one of the ways to go for me I suppose. So it's kind of slow moving. I often think if tribe and the ecosystem that hive has around made them what they are today. I guess that is what keeps Hive ship floating.
No matter what the size of your account, you should be able to ride the wave of success that Hive generates. Keep building and wait for the bigger forces (network effects) come into play.
There is a lot being developed. Over time, it should help to pull more value to the ecosystem.
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good story friend the markets have both sides that is why we must be prepared for any eventuality that may arise. Unlike you, I use almost the majority of my cryptographic portfolio to support myself and sometimes I try to save a little too, but it gets complicated with some expenses that appear unexpectedly. But you know, I am grateful for having the opportunity to know and enjoy in this world what has allowed me to lead life step by step. Greetings and excellent post about your experience in this difficult world.
Understood. It is not easy. For that reason, try to live by the 90/10 rule at worst. Take out 90% of your crypto but keep 10% in to keep things growing. That is how you can start the process of building wealth for yourself.
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I'm somewhat on the same path I'd say haha, in it for the long run for sure. Let's see where it all takes us. 🥃
That is the way to get through the bear markets, keep looking past them.
It will end...at some point.
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Yes sirr, it's all about patience and resilience during these times.
It all starts with mindset in my opinion. That is what makes the difference. Those who have a strong mental outlook are going to excel in the long run.
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This bull run was exhausting and deviated a lot in both directions in extremes, so I've decided to keep my eye on a few projects instead of trying to catch the new best thing. Kinda easy to get lost in a sea full of 'opportunities' haha.
Hive is actually one of the rare (if not the only one) that makes people earn soft skills where you don't have to know python or SQL to make something out of it. That's quite a unique feature to promote out there.
Both sad and thrilled for HIve to be an underdog - will start pumping my bags.
I think Hive stands out but then I am biased.
But I agree with your assessment. I dont know of others that offer the same opportunities.
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My approach have been nothing too different from yours Task except I haven't been in the position to inject fiat as much as I wish.
Other than that and thankful for Hive, I have been consistently exchanging my time for Hive in filling my bags.
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Your activity is consistent and that counts for a lot. It is the path to success.
Perhaps you, in the next bear market, will write a story like this.
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Over 1 million USD? Man, at one point you looked rich :P
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Yeah and by morning, it was under that and kept dropping.
Alas, such is life in crypto. Hopefully the next bull market will take things higher in the sense I will have more in my holdings.
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It's my second bear market as well. I'm planning on playing different the second bull market though and offload some of the bags. Bear markets are for sure a great way to build portfolios but most of us are too scared to do that always waiting for the market to go lower and pretty much often we get too greedy when we should take profits.
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Never a bad idea to take some money off the table.
Of course, if you are getting your rewards paid out 50/50, then you are hedging in a sense and taking a bit of risk off the table.
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For long term investors like us, the Bear market is the best because now we can fill as much as we can to reap the profit in the future.
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If adding from outside sources, without a doubt, it is a great time.
Keep filling those bags.
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Certainly your point of view with respect to the market is quite valid and I believe that with respect to cryptocurrencies it is even more so. Honestly this market is in its infancy and is very volatile but in time like you I believe that those of us who invest in this platform and in the world of cryptocurrencies will be well rewarded for our patience.
Patience coupled with activity tends to pay off.
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the key is always the grind which is not glamorous but it is profitable
No doubt and a great word to add. Grind.
That sums it up. None of this is glamorous and it is, quite frankly, often a pain in the ass. But that is what it takes.
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I try and do more even if it is an extra post a week or make sure I go to bed with 80% VP as why waste it. The little thigs start to add up and it is about consistency every day as it really does work over a period of time.
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The little things make a difference. When you do that, over long periods of time, like 1,000 days, you will see a difference.
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I am doing everything I can to earn earn earn. Thanks for sharing your story. I never would have guessed the beginnings were quite so humble given your success now! Perfect example of what you were just talking about I guess!
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Yeah I didnt come in with a huge amount of followers or money.
A lot of it was due to consistent activity and being able to get into some projects early.
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That's awesome!
Lovely tips, we hear them all the time but it's great when someone couples them with their own personal stories like you've done here. I love the hope all these infuses 😎👍
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Well the only thing I can share is my experience, nobody else.
And yes the tips that are tossed out there come from what I did, not what I think people should do.
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Humble beginnings can’t just be despised. If one is not a sucker for the slow and steady progress on here weariness tends to kick in . Your story is quite a source of inspiration. Big ups!!
Not exactly an overnight success but, as mentioned above, due to grinding. This is what it takes.
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My idea is to accumulate as much as I can to expect a good return when everything goes up, which of course it will.
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We must make the most of the hive ecosystem. There are several options accessible for our use. I wish I was more into gaming to experience the enjoyment that the Splinterlands have to offer. Sir @taskmaster4450 , thank you for sharing this.
There are a lot more opportunities now than the last bear market. This is where the difference comes in.
People can take advantage of it.
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Thank you for sharing your story. It definitely gives a lot more motivation to just keep working and filling the bags at the time like we are at right now. And the keyword "consistency" too. Many thanks indeed. This is a story to learn from.
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I agree. You just need to continue building and I like Hive because there are so many options for people here on the chain. Just stick it out and be active each day on the blockchain.
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Agreed! As long as the fundamentals of what we are investing in (whether FIAT or content/time) are the same then having a long tail approach works well. There is no pressure of needing the money for living now.
I look at it this way, we're going to create and curate content anyway. So I'm going to keep doing what I've been doing and see where I'm at in 3 years, 5 years, 10 years.
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I found the previous bear market (my first real one) hard to endure. Now I find it fun. And I will say that even if bitcoin goes to 20k.
Why fun? Because there are many more things to do other than watch charts. And because we can position ourselves for the future bull market. And being consistent through the bear market is the best way to do it, especially on Hive.
Thanks for this article! Really inspirational for many, I'm sure.
I have no problem with the bear market, my biggest shock was losing all the value I had locked in Terra Luna, and that combined with the market crash, it stings, it took the will to invest more to a really low level at this point.
My strategy is to power down and convert Hive into HBD. I managed to convert some at 80 cents. My regret is I didn't start earlier.
yep building passive income should basically be the long term goal
Dips are great for those who like to earn their HIVE from blogging on the HIVE blockchain. Less vote adjustment downwards means more HIVE for our created content regardless of what the USD shows.
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Do you have any exit criteria?
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