In the 2024 bear market, my friends in the crypto space are crying over their losses. Some went from millionaires to being deeply in debt, while others cleared their positions and vowed never to touch the crypto market again. However, I managed to achieve an annualized return of 50% using a combination strategy of 'dollar-cost averaging + swing trading', increasing my principal from 300,000 to 450,000. Today, I will share this secret to making money in a bear market with you all. Whether it's a bull market or a bear market, you can use it directly. After reading, you can at least save yourself from losing 200,000!
In a bear market, the most common mistake that beginners make is chasing highs and selling lows. When they see a certain cryptocurrency suddenly soar, they follow the trend and buy in, only for it to drop right after; when they see the price continuing to fall, they panic sell, only for it to rebound right after. I made this mistake too. At the beginning of 2024, Bitcoin dropped from 40,000 to 30,000, and fearing it would keep falling, I cut my losses and exited. Not long after, Bitcoin rebounded to 35,000, and I chased back in, only for it to drop again. After several rounds of this, I lost tens of thousands. Later, I realized that the worst thing in a bear market is emotional trading. Only by staying rational can one survive in the market.
After continuous exploration, I have summarized a combination strategy of 'regular investment + swing trading,' with the core logic being 'build positions with regular investments at low levels, and take profits at high levels through swing trading.' The specific operation method is very simple, making it easy for beginners to grasp:
First, choose quality assets for regular investment. Only select Bitcoin, Ethereum, and Layer-1 and Layer-2 projects with real applications. These assets experience relatively smaller declines in bear markets and larger increases in bull markets. I now invest in Bitcoin and Ethereum monthly, with a fixed investment amount each time. Regardless of market fluctuations, I persist in buying, reducing risk through the averaging method.
Second, set profit-taking points. When the assets you are investing in rise by 20%-30%, sell 20%-30% of your position to secure profits; if the decline exceeds 20%, then appropriately increase your position, but the additional investment should not exceed the amount of your regular investment.
Third, maintain cash reserves. I always keep 30% of my cash on hand, and when the market experiences a significant correction, I use cash to buy quality assets at low prices. This approach not only reduces risk but also allows me to seize buying opportunities.
My view is that a bear market is not the end, but rather the best opportunity for positioning. Many people suffer significant losses in bear markets simply because they lack the correct strategy and let emotions dictate their decisions. The bull and bear cycles in the crypto space are objectively present; as long as we can protect our principal and accumulate chips during the bear market, when the bull market arrives, we can achieve a reversal of wealth. Remember, in the crypto space, patience is more important than anything else; those who can calm down and position themselves during the bear market will reap great rewards in the bull market.
Tomorrow I will talk to you about the investment logic of the Layer-2 track, teaching you how to strategically position yourself in the Layer-2 space and seize the benefits of the next bull market. Follow me, and I will help you see through the underlying logic of the cryptocurrency world, transforming from a 'retail investor' into a true investor. After all, in the crypto space, money made by luck will eventually be lost due to lack of skill; only by mastering the correct methods can you make money in the long run!
If you currently feel helpless and confused in trading, and want to learn more about the cryptocurrency world and get the latest information, follow me @标哥说币
