AskLeo - What Are You Going To Do In The Next Crypto Bear Market?

This may be a bit premature to ask since not even the ongoing bull market is over, yet. Some people say we are 2/3 through it while others think we're not so far, yet.

Suppose you manage cash out around the top. You will have plenty of cash from which you pay your capital gains taxes and maybe address whatever pressing needs you may have in your fiat life.

Then you'll wait for the bear market to run its course with your powder dry for the next round of bottom picking.

The question is what are you going to invest in.

What I have learned from this bull market is that sticking to the large caps like Bitcoin and Ethereum is not the best of strategies, in addition to investing time and money in our beloved Hive and many of the tokens on it. All kinds of silly nonsense can fly in addition to the coins and tokens used by some really groundbreaking projects.

The thing is that during the depths of a bear market coins and tokens that can go viral are sold dirt cheap.

This is RUNE of Thorchain. I managed to pick up some at around 40 cents. In hindsight, I've been pitifully under-invested in RUNE. This is a project that always had rock solid fundamentals. Around the time of Bitcoin's last mining reward halving on May 12 2020 RUNE had already started to inch upwards and was receiving some attention but was sold for just 10 cents. Dropping $1000 on RUNE then would have bought a stash of couns already worth about $18,500. This bull cycle isn't even finished, yet. Who knows how high RUNE can go.

As recently as January 2021, DOGE was sold for less than 1 cent. A year earlier, DOGE was priced at 0.2 cents. DOGE has been around since 2013, which should tell you that the coin has some staying power. Nothing wrong with dropping, say, $300 in DOGE when it was that cheap. That money may have bought you 500*300 = 150,000 DOGE. DOGE is priced at 67 cents now. Your stash would be worth $100,000. :D

How about doing some research on projects like Link or Polkadot in 2019 when articles were already written about them in crypto media - and actually investing a bit of money in them? Very little would've been necessary for life-changing gains.

Altcoins get absolutely crushed during bear markets. While some altcoins wither away, fresh projects that solve real problems and that have capable people behind them, can be absolute gems during a bear market. In the next cycle, I will definitely do my research when interest in the space and money frantically chasing gains are mostly absent.

In this bull cycle, I will no longer invest in anything. I'll be just watching my bags appreciate until I feel it is time to pull the trigger and sell them.

Posted Using LeoFinance ^Beta