BlockchainBlockchain GuideThe 10 rules to prepare for the crypto bear...

The 10 rules to prepare for the crypto bear market by the savvy investor

While the Bitcoin and cryptocurrency market reached a record capitalization in November 2021 (nearly $ 3 trillion), the memories left by the bear markets of the last decade seem very distant. At the dawn of an increasingly palpable euphoria, return to these unforgiving periods of decline.

The definition of the bear market

A bear market or “bear market” is commonly a drop of more than 20% since the last high point of an asset. This definition from traditional financial markets is however difficult to apply to cryptocurrencies and the legendary volatility that accompanies them.

More accurately, a bear market could result in the breaking of an upward trend – bull market – followed by a medium / long-term bearish reversal . By its violent but extensive character, the bear market is therefore distinguished from a simple correction.

Cryptocurrencies facing the bear market

Historically and despite a fundamentally bullish market for 12 years, cryptocurrencies, starting with King Bitcoin, have not been spared by these bear cycles.

On several occasions, Bitcoin has experienced retracements of -80% to -90%, particularly in 2011-2012, 2014-2015 and 2018-2019. 

Bitcoin fell from its previous all-time high   

Altcoins, these alternative cryptocurrencies to Bitcoin, are not left out. Carried away by various bearish waves, their total capitalization fell by 92% between 2018 and 2019 …

CoinMarketCap allows you to browse the ranking of the 200 largest capitalizations in the sector as of December 17, 2017. Between a few well-known figures, you will (re) discover altcoins which occupied a major place before losing 99% of their values, from sometimes be de-listed from exchange platforms and finally, disappear from speed cameras. Here are some examples :

HCash, 20th capitalization in December 2017:
Einsteinium , 40th capitalization in December 2017:
TenX, 47th capitalization in December 2017:
Dragonchain , 85th capitalization in December 2017

As for the survivors considered today as pillars of the ecosystem and who have fully benefited from the rise in prices over the past year, none has really been spared:

Ethereum
Cardano
XRP
Litecoin

The investor facing the bear market

Like the price of cryptocurrencies, investor morale itself goes through very volatile phases, as violent as they are sudden. From the euphoria that precedes the fall, to the denial and panic that follows, the less prepared often find themselves helpless and unable to respond. When they understand that an asset that depreciates by 90% can still depreciate… by another 90%, it is often too late.

This is, in particular, a crypto bear market: a complete purge , certainly healthy, but which hurts as many people as possible. A market where everything goes down, then down, then down again. A market that overthrows all beliefs, mocks beliefs and destroys all dreams.

Psychology of Market Cycles – Source: Wall St. Cheat Sheet

Once the storm has passed, only the best projects and investors remain. They are quickly eclipsed by those who have lost everything after winning everything: savings, morale, friendships, family, etc. They can be found on Twitter, Reddit and other forums usually inundated with record earnings generated during bull markets.

Prepare for a crypto bear market

If it is noted that the cryptocurrency sector has professionalized since 2018 and that the fundamentals of altcoins are much better, the violent fall in prices last May (-55% over 1 month) will have served as a reminder: the bear market is part of the very nature of markets and it is essential to prepare for it.

The first step would be to ask yourself the following questions: Am I psychologically ready to endure a 90% fall? Am I really ready to wait 2 or 3 years before getting my head out of the water? Am I aware that the bullish momentum will not last forever? Have I taken the necessary measures to protect myself from a scenario similar to the previous ones?

This introspection is essential because it leads to an awareness that erases all denial. It allows an investor to finally be willing to follow the following 10 tips:

  • Adopt a strategy, a plan.
  • Invest only the money you are prepared to lose.
  • Take regular profits.
  • Don’t fall in love with your investments.
  • Limit the use of leverage.
  • Do your own research.
  • Identify and anticipate the psychological phases of the market.
  • Be patient.
  • Learn from mistakes so as not to repeat them.
  • Build a diversified portfolio.

As you will have understood, a bear market does not forgive. But the investor who today really wants to protect himself against these risks has, unlike previous cycles, all the tools and information available to do so. It is up to him to take advantage of it.

Stephan Evans
Stephan Evanshttps://www.newsalarms.com/
I'm the Man in charge of News Alarms, but also getting all the reviews up on the website, so you can thank me for all those shining stars – or blame me for a lack of them. I also spend my time working my SEO magic to try and coax the Google Juice to flow in our favor.

Latest news

“Digital Compass” Decodes the “Yantai Model” of China’s Wine Industry

Understanding the Yantai Model’s Impact on China’s Wine Industry Hubei, China, 14th July 2025, ZEX PR WIRE, The recent release...

Zak Manhire Launches Mint. io: A Web3 Gaming Platform Driven By AI That Prioritizes Product Over Token

Marbella, Malaga, 14th July 2025, Serial entrepreneur and global strategist Zak Manhire has announced Mint.io, an innovative Web3 gaming...

Faranak Firozan Calls Out Surface-Level Diversity Campaigns and Urges Brands to Prioritize Inclusion Behind the Scenes

Santa Clara, CA, 13th July 2025, ZEX PR WIRE, Marketing strategist Faranak Firozan is issuing a challenge to modern brands:...

ZainTECH secures international certifications in compliance and service excellence, reinforcing regional leadership

Reaffirming ZainTECH’s commitment to global standards in IT services, cybersecurity, and data protection. Dubai, UAE, 12th July 2025—ZainTECH, the integrated digital...

Renowned OBGYN Dr. Thomas John Byrne Advocates for Earlier Prenatal Care and Innovation in Fetal Medicine

New York, US, 12th July 2025, ZEX PR WIRE, With over four decades of medical practice, innovation, and teaching,...

Anand Lalaji Urges Action on Mental Health and Youth Sports Leadership

Georgia, US, 12th July 2025, ZEX PR WIRE, Anand Lalaji, CEO and cofounder of The Radiology Group, is using...

Must read

SenturoPay Goes Live with All-in-One Crypto Spend App and Card Solution

Launch introduces a streamlined platform where users can send,...

MFEV Marathon Success in Serbia: Celebrating Runners, Community, and Charity

MFEV proudly announces the successful conclusion of the MFEV...

Top Cryptos Under $1 to Buy in 2024: Invest Now!

Top Cryptocurrencies to Consider for 2024: Best Picks for...

Must-Grab Crypto Airdrops This August 2024

Get Ready for Exciting Upcoming Crypto Airdrops! Prepare yourself for...

Trending Now: The 5 Best Tap-To-Earn Games Across the Globe

Earn Crypto with These Top 5 Tap-to-Earn Telegram Games The...

You might also like
Recommended to you