5 Ways To Grow Your Portfolio In A Bear Market

The crypto market has been witnessing a bloodbath over the past few months.

The total market capitalization has fallen by 738 billion in the past month. Bitcoin price has fallen from the All-Time High of $69,000 to $31,000. The Fear and Greed Index is now at 10, representing extreme fear.

So should you sell everything and get out of the crypto market?

A bear market is nothing new for seasonal investors. However, most new investors are panicking and selling their assets in losses.

However, do you know that you can profit from bear markets?

This article will discuss 5 strategies that you can use to grow your portfolio in a bear market.

1. Invest in Dips using dollar-cost averaging

You must have heard of the evergreen advice “Buy the Dip.”

Let’s look at an example:

Suppose ETH is trading at $2300, and you’ve $1,000 to invest, and you want to buy ETH as you believe it is bottomed out.

There are two ways to buy a dip:

The first one is investing all your funds at once in a particular cryptocurrency. So in this situation, you will buy ETH worth $1000 at $2300.

The second is to divide your funds into smaller fractions and invest at regular intervals when the price keeps falling. You split the $1,000 into five parts of $200 each. Now, you have bought ETH worth $200 for $2300. You currently have reserve funds to buy the dip if the price drops further.

You invested everything at once in the first situation, and if the price dips further, you’ll bear a loss.

Whereas, in the second situation, if the price dips below, a loss will be significantly less when compared to investing at once. You’llYou’ll be able to buy the further dips without worrying about the funds.

Dollar-cost averaging often produces better results than buying early before the price has bottomed out.

2. Get the maximum out of Indicators

No indicator is 100% accurate, but a technical indicator can help you in decision-making by giving an idea about the performance of a crypto asset.

Some of the good technical indicators are:

Relative Strength Index (RSI)

The RSI indicator reveals whether an asset is overbought or oversold, indicating a bullish or negative trend. 

If the RSI is near 70%, the cryptocurrency is overbought. If it is less than 30%, then cryptocurrency is underbought.

200 Moving Average (200MA)

200 MA is considered the best indicator for long-term investing.

If the price breaks the 200 MA, it represents a downward trend. Similarly, a price above the 200 moving average suggests an upward trend. 

3. Crypto Staking

The declining profits arena isn’t ideal for any cryptocurrency portfolio. However, suppose you have a long-term strategy. In that case, you may offset falling prices by staking your cryptocurrency and earning interest on it.

Staking involves locking in your cryptocurrency in a given blockchain for a specific period to earn some passive income (staking allows you to profit regardless of the value)

On the verge of prevailing bear markets, several exchanges and DeFi protocols provide great APYs for staking.

Staking is risky, too, if the value of your asset does not grow. But when you compare it with investing in crypto, you’ll still see a staking rise in your overall investments.

The most crucial part of staking is choosing an excellent platform for short-term staking periods and regular rewards.

Roseon has come up with a solution for all your staking issues. We offer our users excellent Annual Percentage Yields (APY) and two (2) main staking options – Locked Savings or Flexible Farming.

In Locked Savings, users will lock their cryptocurrency for a set period and benefit from fixed APR.

While in Flexible Farming, users can have variable APR, and they can freely stake and unstake their tokens.

Sound interesting? Download Roseon App today and protect your gains from wiping out.

4. Diversify your portfolio across various crypto assets

Investing your hard-earned money in a single asset is never a wise choice.

Different cryptos experience big and minor drops.

Diversifying your portfolio reduces your risk exposure. Some of your coins would be performing well, and some may be running at a loss.

However, it doesn’t mean that you invest in every project.

Try to Do Your Own Research (DYOR) before investing and develop at least 5 to 7 projects you believe in and trust.

You can find all the information about a project on its website.

5. HODL and Don’t Panic

Investing your hard-earned money in a single asset is never a wise choice. Different cryptos experience big and minor drops.

Diversifying your portfolio reduces your risk exposure. Some of your coins would be performing well, and some may be running at a loss.

However, it doesn’t mean that you invest in every project.

Try to Do Your Own Research (DYOR) before investing and developing at least 5 to 7 projects you believe in. You can find all the information about a project on its website.

Final Words

It’s challenging to keep your cool while crypto assets suffer double-digit losses. Follow these simple actions to capitalize on this bear market opportunity.

Uptrends and downtrends are essential for market corrections.

Start having a positive approach towards a bear market. It offers you many great projects and coins at a discounted rate.

Believe in your decision, and don’t let emotions rule your primary purpose of investing in crypto.

If you haven’t started your crypto journey yet, this is the right time.

Register with Roseon today and join the revolution.