These market conditions are just brutal. It seems like all the news is bad. It seems like bad news in one part of the market drags the whole market including unrelated parts down with it. And that’s what happens in bear markets.
But now is the time, if you have the discipline to build good investing habits that will make you a lot of money in this market and protect you in future bear markets that will come. We have 6 excellent, simple ways you can adopt starting now, that will make you money throughout many markets, not just the current bear market. And these simple habits define a successful Crypto Investor. Want to learn more? Then let’s check it out.
But first, let’s establish the importance of habits, which are fundamental to the success of any investor.
What is a Habit?
Habits are important. They help us build discipline. They give us the mental muscles we need to stay with our plan when times get tough. And there are lots of famous quotes about bear markets out there like:
- People make money during bear markets, not bull markets
- People make money when (and how) you buy, not when you sell
- Buy when there’s blood in the streets
- Or Warren Buffett’s Be fearful when others are greedy and greedy when others are fearful
And we are fearful now for sure.
Fortunes are made in the bear market, not the bull market.
— Pomp 🌪 (@APompliano) May 19, 2022
But these are things that are easier to say and harder to do. This is why we need to put these simple ways in place. They remind us to forget the noise and do what we need to do. Here are 6 great yet simple ways that will make you successful in crypto investing irrespective of the market sentiments.
But if you are looking for bear market-specific ways that could help you stay afloat make sure you watch the ultimate guide to becoming a crypto bear market millionaire.
1) Buy Quality
There is no substitute for quality. ‘The bitterness of poor quality remains long after the sweetness of low price is forgotten. Ben Franklin said that over 200 years ago. And it’s true in crypto markets, too.
EVERYTHING is on sale thanks to these market conditions. So if you can get everything at a lower price than you could 6 months ago, why buy junk? Don’t buy meme coins and junk coins here just because they cost fractions of a cent.
Buy the best quality. Quality is on sale. Now quality projects are not always the biggest ones but many top Layer 1 projects and top apps are top because they are high quality.
Look to buy those first. We will discuss more a little later on how to figure out what quality is but if you buy quality, it will be the first and longest to recover when markets do recover. And they will. Buy the Blue Chips and have them in your portfolio. You can use our free crypto evaluation checklist to find quality projects.
2) HODL Long Term
You need to hold long-term. Why? Because crypto markets are volatile and volatility is good. Volatility means something that has not been moving can go up 50% in a week and go on a tear. So yes, that can happen, but why the need to HODL long-term then if these explosive moves tend to happen?
MicroStrategy Inc.’s new chief financial officer on Wednesday said its strategy to buy and hold #bitcoin long term won’t change despite the recent selloff in the digital asset. $MSTR #HODLhttps://t.co/AhyxQ9qpxM
— Michael Saylor⚡️ (@saylor) May 18, 2022
The reason why is the When. When will that upward explosion in price happen? Do you know? You don’t and we don’t either. That’s why we recommend long-term holdings with only a few specific exceptions.
Because if you are already IN THE MARKET, you are guaranteed to take part in that huge upward movement in price when it happens. It’s the only way to be sure. You can only be sure you capture these big moves if you already have your position in the market. So HODL long-term. Goes well with #1 of buying quality too.
3) Own Some Bitcoin
No one loves alts more than us. It’s in our company name and giving great alt projects some of the attention they deserve is our reason for being here at Altcoin Buzz. And yet, if you don’t own at least some Bitcoin in your portfolio, then you are doing it wrong. Seriously. Bitcoin is the original. It’s the only truly decentralized project right now today.
It’s the only project whose goal is to become money. Only Bitcoin makes GOVERNMENTS feel afraid of and legislate against it. No one is worried about the effects of ETH or DOT taking over their national economies, as much as we like these 2 projects.
It’s Bitcoin. Bitcoin is the leader and it’s the one legacy finance and government fear the most. You would never put together a portfolio that includes tech companies and exclude all the FAANGs would you? Then why would you create a crypto portfolio and not have some Bitcoin in it?
Your appetite for risk and other projects you favor will determine what percentage of BTC you should have. But if that number is currently ZERO then you need to do something about that right away. Brand New Game X or NFT Collection Y can wait.
Bitcoin has outlived many bear markets and as we are seeing, some projects won’t outlive this one. It’s the safest crypto you can buy.
4) DCA (Dollar Cost Averaging)
By putting in a little bit at a time at regular intervals, you are building your positions to make them strong over time and the volatility of the market is working in your favor.
Lots of DCA investors LOVE bear markets. It means their $100 every 2 weeks that they are buying buys more of their favorite projects. It’s like getting an item you would already pay full price for while it’s on sale.
Dollar-cost averaging (DCA) is a strategy where an investor invests a total sum of money in small increments over time instead of all at once. The goal is to take advantage of market downturns without risking too much capital at any given time.
You should try this when investing pic.twitter.com/FerQZRI8Xu
— Browngirl Eca (@BrowngirlEca) May 24, 2022
You may have heard this quote before about trading of ‘Plan Your Trade and Trade Your Plan’. Well, this goes not just for trading but for investing too.
If you plan to do $100 every 2 weeks, then you will stay disciplined to do so every 2 weeks regardless of market conditions. In bull markets with higher prices, that $100 will buy less. And in bear markets like now that $100 will buy more. Keep that up with a long-term market that trends positive and you will make money.
5) Invest in Education
Thankfully, with YouTube and CryptoTwitter, it’s easier than ever and often free to get some of the education you need to make good investing decisions. This includes building on the previous tools like learning how you determine quality projects, or which ones you should be doing DCA on for the long term.
We make our videos to educate and we know they help. Channels like ours are an investment of your time but not your money so you can understand the market better. Twitter is full of specialists who make threads weekly on what they are finding in the market. Here are a couple of examples:
- The Altcoin Buzz YT channel (natch)
- @ZachXBT on Twitter. No one is better at discovering and explaining scams
- Your favorite project or project you are researching like Cosmos or Avalanche. @Cosmos @AvalancheAVAX
- @Route2FI for DeFI
- Our Twitter @altcoinbuzzio
- Dune Analytics @duneanalytics
- @APompliano for VC insights into the industry
And there are many, many more. And the great thing about Twitter is you can search for others easily as well as see who these leading accounts follow and follow them too. Then, you can level up your crypto education fast. Better sources mean better faster information.
6) Find a Niche
Piggybacking off of #5 with investing in your education, the crypto industry now is huge. You have:
- Layer 1
- Layer 2
- Interoperability (Layer 0 like Cosmos or Polkadot) and Bridges
- Blockchain games
- Web3 Infrastructure
- And more
And it’s just not possible to stay up to date on everything. So pick 1 or 2 areas. Niche down and get very educated in these 1-2 areas. Then you can recognize a real opportunity from some scam or some silly dreamer’s project.
That and you won’t be spending hours researching every day when you have a job, family, and social life to attend to. You can make educating yourself with the free time you have more much realistic by niching down.
Start with areas you like and/or areas you think are ripe for growth in the next 12 months. Become an expert in that area and you will spot opportunities others can’t see yet. We know, that’s how we do it here.
So that’s our 6 simple ways to become a successful crypto investor. It’s nothing complicated or time-consuming. But these steps will help you make your investments more successful.
- Buy quality and invest for the long term.
- Include as part of that quality, Bitcoin is the market leader.
- Implement dollar cost averaging into this quality that you buy over time so volatility and market fluctuations work for you and not against you.
- Educate yourself to make good decisions and know what quality means to you.
- Niche down so you can develop some expertise in a short period to recognize the best opportunities in certain crypto sectors.
These aren’t hard things to do but fall into the simple but not easy category. It takes commitment and discipline. But with those things, you can do it.
Remember the entire crypto industry did not exist 15 years ago. Every single expert in the industry now was a beginner once. They learned how to work the system to increase gains and now you can too.
For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.
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