5 Things To Do When The Crypto Market Is Down
When the charts run red and the market is bearish, what do you do?
Crypto market crashes are not a new phenomenon. If anything, they are an integral part of the trading experience. Nonetheless, it can be challenging to keep seeing the bigger picture when the market is down (or on a bear run).
To make handling a bear market (a little) more manageable, here are five things you can do to keep your head above the water and weather the crypto storm:
- Buy crypto assets
- Do not sell
- Convert to Stablecoin
- Wait it out
- Reorganise your Portfolio
Buy Assets
If you’ve had an eye on a particular coin, this will be a great time to buy it. Remember the golden rule - buy low, sell high. Look at the charts, research the asset then buy the quantity you can afford. Just to reiterate, it is crucial to carry out enough research before purchasing a crypto asset during a bear-run to avoid investing in a coin that won’t pay off when the market is back up.
Don’t Sell
Once again, the golden rule of buy low, sell high applies.
The market is down, and asset values have fallen. Selling right now might make you lose out on the potential profit ahead. It may very well be in your best interest to Hold On For Dear Life to your coins.
However, if you decide to sell, do a proper evaluation of your portfolio and the losses you might incur from selling. You should also note that when people sell their coins during a market crash, the price of assets falls even further.
Convert to Stablecoin
If the market crash has you more shaken up than you’re comfortable with, you can convert your cryptocurrency to Stablecoins like USDT and USDC to serve as a volatility hedge.
Wait it Out
Sometimes, doing nothing is the best thing. Market crashes are normal. You don’t have to do anything just because the charts are red. Don’t allow yourself to fall prey to FUD (Fear, Uncertainty and Doubt). Keep an eye on the market but don’t allow yourself to be overwhelmed by the falling asset values.
Reorganise your Portfolio
One of the primary keys to success in crypto trading is constant diversification. After the crypto market has gone up or becomes more stable, it is advisable to assess the assets in your portfolio. Evaluate your crypto coins and how they were affected by the bear run. When you do this, you will have ample information to help you reorganise your crypto investments.
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Cryptocurrency market crashes can be frightening and challenging to deal with. It is essential to stay as calm as possible during such periods to avoid making decisions you may come to regret. Follow the steps shared above, keep an eye on the market and don’t (try not to) lose sleep.
Disclaimer: This article was written by the writer to provide guidance and understanding of cryptocurrency trading. It is not an exhaustive article and should not be taken as financial advice. Obiex Finance will not be held liable for your investment decisions.
