Why I Am Not Worried About “Losing Money” During This Bear Market
The crypto market is “crashing“, investors are panicking. Every single telegram crypto group is filled with as much gloom as it is doom. Fear, uncertainty, doubt, aka FUD stricken market, like a nasty plague inflecting slow pain on a catastrophic level, where bag holders um and ah at every rising of the dreaded red signals on coin market cap, understandably so, when some of the strongest top 10 alts are reduced to 10% of their ATH glories. Welcome to the after mass of 2018, leading into early quarter 1 of 2019 and we are still in the midst of what could only be described as one of the longest bear season market, the drought, the crypto apocalypse. Crypto is over, it was just a human social experience. Right?
We are here to tell you, it is during these times that millionaires are made. Don’t believe us, read on to find out 2 fool proof ways to profit during these tough times.
WHAT IS A BEAR MARKET?
Bear market is when crypto prices are at some of their lowest, when Coin Market Cap is constantly filled with a sea of red. For example, at her all time high (ATH), the Queen Ethereum (Eth) was proudly trading at $1422.47 per Eth, as it stands during this bear season, Eth is trading at $108.69 at the time of this article, less than 85% of what she used to be. Bitcoin (BTC), at ATH was trading at approximately $20,000 per BTC, has now been reduced just under $3,500 per BTC at the time of this article, less than 20% of what it used to be just under a year ago.
The market is a sea of red. You have two choices, to panic, sell up and get out now, it is what the shakers and movers want. Or you can choose to hodl and accumulate and be rewarded in the days to come. We choose to accumulate and be well rewarded, patience is a virtual and that will pay handsomely in many crypto returns, because crypto is here to stay and the World has not even seen the beast that is crypto taking off on its technology super highway yet. Crypto is still very much in its infancy, like the Nokia 3130 cell on its arrival, thick as brick, with limited functionalities yet only the elite few would proudly walk around with like security walkie-talkie. Fast forward to 2019, and there you have it, shiny, agile, super high tech iPhone 8+ and iPhone X with all its fancy games, features, with the likes of Siri catering to your every questions and demands. That, our friends, is where crypto is heading, as mass adoption grows and the use of cash monies become obsolete.
Bear season is often the result of many different reasons, usually dips in the market are caused by FUD, such as uncertain or negative news, restrictions. Sometimes these news are legitimate, other times, they are just political games that financial institution and other powerful forces that be may play to enter the market at a more favorable position, ie – buying in at a the cheap. When they buy, they would be buying from you, the panic sellers. Don’t be the people filling their bags, particularly at a loss to you.
It is during these bear markets, that opportunities and second chances present themselves, and t is purely up to you to grab those opportunities by the horns or not. Should you choose to take the red pill, we can show you 2 ways down the rabbit hole and you can decide how deep you want to go.
THE AVERAGING DOWN & ACCUMULATION STRATEGY
Averaging down is a term used in crypto and the name says it all. Averaging down simply means buying down your original prices, whilst accumulating more of your holdings. For example, if you are currently holding 10 Eths which you have purchased at a higher price of $700 each, and you are now deciding to buy 10 more Eths at just $108.69 at its current market price, it means that you’d be paying for a total of $8086.90 for 20 Eths, or $404.345 per Eth on average, as opposed to the original price you paid of $700 per Eth.
This is a wise and safer strategies for rookies new to the crypto space, who believe in long term growth and future mass adoption. It is recommended for the investors who are patient, and don’t mind waiting for their pay days in the near future to come. Using Eth as an example, we have seen it at $1422.47 before, and we will again beyond its previous ATH, it is not a question of if, rather when.
Averaging down and accumulation strategy should only be considered for coins with a strong project and foundation behind it. Personally, for long term accumulation, I would only recommend the top 10 coins, the reason being is that these coins have simply proven themselves to have a high demand and strong growth, thus minising risks.
In simple terms, averaging down allows the investor to add to their mid to long term holding bags at a lower price, thus, maximising their future profits once market recovers and blossoms.
For the intermediate level investors, Alt Musical Chair Trading is a fun and highly profitable way to take advantage of the market, often times, using very little of your own money.