You must have heard people saying buy bitcoin at this price or DCA your bags. But what does it actually means and how do we start accumulating in Bear market? In this article I will share 2 techniques that will help you in your journey towards a million dollar.
First off when you’ve figured out that we are witnessing a crash Do Not Panic. Control your emotions and start rational thinking on how to handle the situation. If market capitulates and your portfolio goes in a massive drawdown, Then first thing you should do is to not Panic sell. Then do a bit of research and figure out whether the coin you are holding is worth risking more. If you’ve figured out that the coin has strong fundamentals and is likely to survive the bear market then start doing DCA. Accumulate the coin is parts and keep some of your funds in hand always for worst market scenario. Now you may ask, What is DCA?
Dollar Cost Average (DCA):
Dollar cost averaging is dividing your Funds and buying in intervals when the market is moving downwards or sideways. Make a percentage plan to divide your portfolio that when the market will for example dips 20% you will put in the first amount to DCA. This will average out your buying price and when the market recovers back to your original buying price. You will be in much better profits due to averaging out on every dip. Second method is SIP.
Systematic investment plan (SIP):
In this method you don’t really care about the price of the asset you want to accumulate. If you’re a person who’s on a regular job then this technique would suite you to make your bear market portfolio. Based on monthly basis whenever you receive funds. Invest a decided % from your paycheck in to the asset that you want to accumulate. This should be done in bear market when the price is continuously dropping or going sideways. Make a target that you want to hold x amount of coins for this x of time period be it few years or the next cycle.
SIP should be started when the price of the asset has fallen down atleast 50–80% from it’s previous ATH. Before starting to invest Do your research and get confident knowing them that the project’s fundamentals would survive and come back stronger in the next cycle. These are the two techniques that can be used in the bear market to yield the best returns for the next cycle.
Crypto assets That I am looking to Accumulate for the next bull season:
From now on regular basis, In my FREE telegram channel, I will be sharing projects that are worth accumulating in this bear market along with their fundamentals and technicals so that you don’t have to go through much trouble figuring out what’s worth it.
Note: Nothing posted here is to be taken as a financial advice. Always do your own research before deciding to invest.
Twitter @Itsdehamza
Telegram https://t.me/CryptoniumG
Join Coinmonks Telegram Channel and Youtube Channel learn about crypto trading and investing