The saying 'In a bear market, don't cut your losses; in a bull market, double your earnings' sounds easy, but it's much harder to execute than climbing to the sky. I lost all my savings of 50,000 in the bear market of 2022 and almost exited the crypto circle. Luckily, I held on until the bull market, not only recovering my losses but also earning 10 times. Now I understand: the key to turning around in the crypto world is not skill, but the patience to endure.
The most common mistake ordinary people make in a bear market is panic selling. Watching assets shrink day by day, they lose their composure and sell their holdings at the lowest point. As a result, when the bull market comes, they can only watch helplessly as others make money. The true winners are those who quietly position themselves during the bear market and slowly realize profits in the bull market; patience is the most valuable asset.
Share three practical tips for reversing in a bear market. First, use dollar-cost averaging to reduce costs. In a bear market, the market fluctuates greatly, and dollar-cost averaging can automatically buy more at low prices and less at high prices, slowly lowering the average cost. In 2022, I invested 1000U monthly in mainstream assets; at the lowest point of the bear market, my account was down 40%, but I persisted and didn’t sell. By 2024, in the bull market, my dollar-cost averaging portion increased eightfold.
Second, allocate to valuable sectors. In a bear market, junk coins will be eliminated, while projects with real applications and technical support will survive, and their prices will fall into undervalued ranges. I allocated to two sectors in the bear market: one in infrastructure and the other in DeFi, both of which are areas with real demand. When the bull market comes, these two sectors rise the most.
Third, control your position and keep enough cash. In a bear market, do not fully invest; use a maximum of 50% of your funds to allocate, and keep the remaining cash to buy the dip. In November 2022, at the market's lowest point, I used the remaining cash to increase my position by 30%, which later made 12 times profit. Remember: in a bear market, cash is king, and opportunities are waited for.
Operations in a bull market are simpler: don’t be greedy, take profits in stages. Many people run away after making a little profit in a bull market, or want to earn even more after making a lot, only to end up giving back the profits. My strategy in the bull market is to sell 20% after a 50% increase, 30% after a 100% increase, 30% after a 200% increase, and use a trailing stop to lock in the remaining 20%. This way, I can make big money while avoiding market reversals.
From losing everything in a bear market to making ten times in a bull market, my biggest realization is: the cryptocurrency market is cyclical. As long as you choose the right targets and manage risks well, you can turn around by enduring until the bull market. I compiled a 'Bear-Bull Transition Trading Guide,' which includes a list of targets for bear market allocation and profit-taking strategies for bull markets. Follow me to get it for free. The next article will discuss 'How to Avoid Corrections in a Bull Market and Protect Your Profits.' Follow me, and let's endure the right time together to make big money in the cryptocurrency market!@男神说币 #巨鲸动向 $BTC
