By Valefica - Applying lessons from Buffett, Wood and Kapún
🐻 What is a Bear Market?
Definition: Sustained decline of 20%+ from all-time highs.
In crypto: It can be -50% to -80% over 6-24 months.
Examples:
2018: BTC from $20K to $3.2K (-84%)
2022: BTC from $69K to $15.5K (-78%)
💡 Lessons from the Masters
Warren Buffett: "Be greedy when others are fearful"
Bear markets create the best buying opportunities
Invest only money you won't need for 5+ years
Focus on fundamentals, not daily price
Cathie Wood: "Disruptive innovation requires patience"
Technology adoption cycles have extreme volatility
The best technologies suffer the most during bear markets
Maintain conviction in revolutionary projects
My advice: "Education is the best protection"
Understand and know what you are buying before investing
Communicate risks clearly to your circle
Accessible information prevents emotional decisions
🛡️ Protection Strategies
🏰 Rule #1: Only Money You DON'T Need
❌ NEVER use:
Rent money or basic expenses
Emergency fund
Borrowed money
Funds for education/health
✅ YES you can use:
Extra money after expenses
Secondary income
Entertainment Budget
📊 Defensive Portfolio
Bear-resistant distribution:
├── 30% $BTC / $ETH (core)
├── 30% Stablecoins earning yield ($USDT ) or similar
├── 25% Traditional Assets
└── 15% Cash/emergency fund
🎯 Dollar Cost Averaging Inteligente (DCA)
In bull market: DCA buying gradually
In bear market: DCA gradually selling
Keep 40-60% to buy at maximum fear
🧠 How Not to Panic
Think of Warren Buffett:
Think in years, not days
Markets are short-term voting machines, long-term balance sheets
"Time is a friend of wonderful company"
Cathie Wood's Strategy:
Maintain conviction in disruptive innovation
Use volatility as an opportunity for better entry points
Focus on transformational impact, not current price
What I do:
I constantly educate myself on your investments
Communicate risks transparently
Make decisions based on information, not emotions
📚 Practical Action Plan
Preparation (Before the Bear):
Define your real risk tolerance
Invest only money you can afford to lose
Set mental stop loss levels
Diversify appropriately
During the Bear Market:
Don't look at portfolio daily
Maintain normal life routines
Use the time to educate yourself more
DCA selectively on core projects
Opportunities at Bear:
Quality projects at discount prices
Time for deep research
Less noise, more signal
Preparation for the next cycle
⚡ Bear Market Signs
Techniques:
Sustained drop 20%+ from ATH
Decreasing volume on rebounds
Extremely negative sentiment
Fundamentals:
Projects disappearing
Reduced capital venture funding
Stagnant adoption metrics
Psychological:
Crypto groups remain silent
Influencers change the subject
Media mainstream ignora crypto
🎯 TLDR
As Buffett would say, "Only when the tide goes out do you find out who was swimming naked."
As Wood would teach: Volatility is the price you pay for exponential returns in disruptive technologies.
My advice: The best protection against bear markets is prior education and realistic expectations.
The 3 Golden Rules:
Invest money you DON'T need (Buffett)
Maintain conviction in innovation (Wood)
Be honest and transparent with yourself
Bear markets don't last forever. Those who prepare properly emerge stronger.
Is your portfolio ready to handle it? 🤔
