5 best practices to survive in a bear market?

 

Crypto dominance in today’s world

You probably are no stranger to cryptocurrency or p2p crypto exchange India and its innovative trading tools. It is a trending topic on everyone’s radar and has unfailingly continued to make headlines every day. Most may think of it just like trading stock, but what has made it so popular?

The Crypto Craze

In layman’s terms, a cryptocurrency is a form of digital money. This does not mean you own cryptocurrency while it may be possible to digitally manage and transfer your traditional currency. What makes a crypto exchange in India as well as the rest of the world popular and different is their decentralized feature which makes them a democratic alternative as compared to government-based money. What makes them popular? This question can polarise people’s views. Some are unsure about the popularisation of cryptocurrencies while others claim that they may be the future of money and can replace the traditional centralized coins controlled by governments. Just like any market, investing involves risks, and the risks of trading cryptocurrencies are associated with its volatility. It is therefore advisable that you do your research and understand the risks involved before you start trading. However, there are a few important tips that you must keep in mind before getting involved. Whether it is finding the best cryptocurrency exchange in India or preparing yourselves to face the ordeals of this crypto bear market.

A few of these are as follows:

1. DIVERSIFY

Diversification is a key factor against volatility. Having your portfolio spread among many crypto exchanges in India and other crypto assets is a wise move. This process of diversifying depends solely on the risk appetite of the investor. As the goals and conditions of the investors vary individually. A proper asset allocation strategy allows them to easily avoid potential negative impacts on their assets.

2. Invest wisely

Proper knowledge about your risk appetite is crucial before you make the jump, especially with a volatile asset like crypto. Long-term wealth is a result of investment however investing wisely is important. A mantra that can help you in this field of p2p crypto exchange in India is ‘invest only that much which you can afford to lose.’ One should always have their guards up in these bear markets that are unpredictable and can be destructive.

3. Staking

Staking, in simple terms, is the locking away of your crypto coins on a blockchain for a short time to expect passive income. Staking does not let you stress over the daily price fluctuations since the staked asset continues to bring in tokens. Staking in a crypto exchange in India also makes the investors feel secure about their position due to the value of their assets.

4. Dollar-cost averaging

Dollar-cost averaging is an investment strategy wherein the total invested amount is divided across periodic purchases of the asset by an investor. This is done to reduce the effect of volatility on the total purchase. This means that the purchases can take place at regular intervals regardless of the price of the asset. By doing this, investors at the best cryptocurrency exchange in India like Shiftal, often end up buying shares at a very low price when the market is down. This in turn allows the investors to average down their cost giving increased overall price entry for the crypto assets.

5. Self-investment

A very beneficial tactic an investor can do during a down market is to self-invest by learning something new. How does this help? It helps them learn to avoid the urge to sell and miss out on future gains. Educating yourself enough before you enter this world of crypto investment goes a long way. Be it learning to program in Solidity, experimenting with every move or just research on your part to gain a deeper understanding of this field will eventually benefit you. However, in the end, surviving a bear market is all about staying positive and being patient. At Shiftal, the best cryptocurrency exchange in India, you will learn these along the way.