It’s not the first time that cryptocurrencies have been in a bear market. While it is easy to make money in a bull market, getting through a bear market is the key to gaining more experience in trading crypto.
While Bitcoin recently made an all-time high at almost $65,000, it also quickly made a massive correction, taking the leading cryptocurrency to lows of $47,000. While BTC and altcoins are making a comeback and rebounding, bear markets will continue to exist in the future.
Despite what you hear out there, you could still be able to profit in a bear market. As long as the cryptocurrency market is moving, you can make a profit. Although no one will know how long bear markets would last, you can position yourself to benefit from them.
What is a crypto bear market?
A crypto bear market is when the prices of cryptocurrencies decline sharply. While most cryptocurrencies have a similar correlation to the leading digital asset Bitcoin, many altcoins will follow and move in the same direction.
During a bear market, it is hard to tell when they will reach their bottom. Timing the market may also be tricky to buy back into the market and wait for the cryptocurrency’s price to rise again.
Setting your buy-the-dip entries
There’s no better time to buy a dip than when in a bear market. There are plenty of opportunities to buy the dip during this time. Although it is common to be fearful when entering the market when almost every crypto is trading in a sea of red, the new asset class could be quickly rebounding as well. Don’t let your emotions get to you. The market can move down as soon as it can bounce back up.
By doing your own research and analysis of your preferred trade, you can set entries ahead of time to make sure that when the dip does come, you are able to lock in your entries. You can do this with CoinPanel’s Full Trade Feature, where you can set your entries following your bear market strategies and buy the dip.
After buying the dip, you can also sell your cryptocurrencies swiftly when the digital asset prices regain strength and be able to make a quick profit.
Be careful of massive red candles
Despite the benefit of being able to buy the dip during a bear market, you will also need to set stop-losses, which ensures that you manage your risks properly. Both bear and bull markets are not stagnant and could move quickly, so volatility may not always be your friend.
Whether you are longing or shorting a trade, you must always set your stop-losses in case the market moves too quickly, and you can get out of a losing trade. CoinPanel offers more stop-loss options than exchanges, giving you more support and a sense of security when trading during these volatile times.
Most returns happen overnight
As mentioned before, the crypto market can move down and move down and be capable of moving down and equally capable of doing the reverse just as quickly. Therefore, you will never know when this would happen, and it could even occur when you are sleeping.
Let’s say you could buy a decent dip during the hours when you are awake — but what happens when the market recovers in the hours you are sleeping?
This is why you need to set a Full Trade — where you are able to set your entries, take-profits, and your safety net, your stop-losses. To ensure you will profit as soon as the market wakes up and rebounds again, you can set your take-profit orders ahead of time with CoinPanel, where the platform can automate these trades for you.
The market waits for no one, so start trading with CoinPanel, so you don’t miss out on profits!