It’s no secret we’re in the middle of a cryptocurrency bear market. Anyone who’s still clutching to their coins has seen their portfolio nosedive double digits in the past few months. But now is not the time to “take your ball and go home.” No, it’s the time to set yourself up for the next bull market — wherever that may be.
You can make several moves right now to capitalize on the discounted prices on Bitcoin, Ethereum, and any other altcoin you’re into. No, need to bank on hitting a jackpot at a Las Vegas casino and sportsbook to make up your 2022 losses. No, no, just follow these next rules and you’ll be prospering when the bulls retake control of the market.
Build Cash Flow Aggressively
Priority number-one for you is to build up your cash flow — e.g. not only how much money you make, but more importantly, how much you SAVE. The reason is simple enough: the more money you can dedicate to crypto investing, the more assets you’ll be able to accumulate. With the current prices of coins, there’s a TON of bargains market-wide.
Obviously, we know this is a tough rule to follow with inflation peaking worldwide. While you can save money here and there by deciding to cook at home rather than eat out, you’ll be able to build cash flow more easily by getting a “side hustle.” The Internet has made making money on the side (after work) easier than ever. Hone in an online skill — marketing, teaching, data entry, etc. — and sell your services online to earn extra spending funds.
Research Coins & Projects
Once you have the extra spend, you’ll have to decide where to disburse that — stick to the tried-and-true Bitcoin? Is a new Layer 1 on the horizon that’s super scalable? Is there a new web3 project riding the metaverse macro-trend with huge potential? Ideally, you need to be asking yourself all these questions, plus more, to figure out where your funds should be allocated to.
And by research, ideally, that’s independent. If this year has taught you anything, it’s that there’s a lot of FUD in the market — many of which are peddled by “thought leaders” and”influencers” being paid to shill coins or projects. Look no further than Bitcoin maxis promoting centralized platforms like BlockFi despite self-custody being the hallmark feature of crypto. The lesson? Form your own opinion.
Dollar Cost Average
Once you know what you want to purchase, you’ll want to dollar-cost-average buys. Every month or week, have a set day where you buy coins regardless if the market is pumping or dumping. This consistency will be rewarded when the bull market returns.
The reality is no one can “time” the bottom. It doesn’t matter what any technical analysis chart says, no one and nothing can accurately predict the lowest price an asset will go. It’s never good to be greedy in investing — and right now, prices are already distressed enough. It doesn’t need to go “lower” for you to profit off of.
We alluded to this before, but we’ll repeat ourselves: self-custody is what ultimately separates cryptocurrency from fiat. If you own your coins, NO ONE can take them away from you if secured properly. And guess what? If your coins are sitting on centralized platforms — BlockFi, Binance, Coinbase, etc. — then they’re not truly yours!
Invest in a wallet to store your coins, whether it’s cold or hot storage. As you saw with Celsius and Voyager’s recent bankruptcies, if a platform goes under, your coins go down with them. You avoid this if coins are stored in your own wallet and not centralized services.
Last but not least, STAY PATIENT. This bear market could last six more months, maybe 18, heck even 36 months — no one knows for sure. History says the crypto market will reheat near the next Bitcoin halving event (early 2024), but things can change. There’s different macro conditions — possible global recession and food shortages — this time around that can change crypto’s trajectory. All you can really do is wait, prepare, and accumulate assets in the meantime.
David is a crypto enthusiast and an expert in personal finance. He has created numerous publications for different platforms. He loves to explore new things, and that’s how he discovered blockchain in the first place.