I'm about as optimistic as one can be about the future of bitcoin, but that doesn't mean there won't be bumps and rough patches before we reach that moon landing goal of ours. We have to be honest and admit that bitcoin is not at the place in terms of prices that many expected we would be entering in May 2022. Although I would argue that with everything bitcoin has had to contend with, and still hovering around a price of $40,000 is something incredibly bullish. A few years ago, who would have thought that people would be declaring bitcoin doom and gloom stories as it fell to $40,000. Keep in mind it was $3,400 in March 2020.
With all that said, however, there is no denying that the last few months have not gone as we had hoped. With the price of bitcoin being sliced sideways in a way where it is more common for the price to fall lower than higher. We went from a high of $69k last November to $39k. If you have a long enough time horizon for bitcoin, this short-term price action shouldn't bother you in the slightest. In fact, it should make you excited to have the opportunity to accumulate bitcoins at a lower price again.
But what if bitcoin enters a bear market? What do bitcoiners need to do during this time to not only survive, but set themselves up to thrive in the future?
Without further delay, let us delve into this important topic.
The first thing that you should always be aware of while investing in the bitcoin and cryptocurrency markets is that market sentiments can change in a blink of an eye. One minute we can experience hopium emotions and that will definitely get us to a bitcoin price of $400,000. And then the next minute the price of bitcoin could drop by thousands of dollars and our future includes nothing but doom. Going from a bull market to a bear market can happen so quickly, most people just don't realize it. This is because they are often too stuck in their opinions and not open to the facts and information being presented to them. In order to be successful with bitcoin and cryptocurrency, we must continue to keep an open mind, be nimble, and adapt as the market changes. If you are able to do that,
Continue to buy
There are a lot of people who will try to perfectly define the bottom of the market. Hoping to spend a large amount of money and buy perfect bitcoins at that exact lowest price. If you are able to do this, it could be a life changing moment for your financial future. Unfortunately, I don't believe I will have such a great moment. Instead, I keep buying more and more and the price drops. The hope is to lower my average purchase price I've paid for bitcoin. Naturally, because it could be a bear market. It's very possible that prices will continue to fall even after buying your bitcoin or cryptocurrency. This is called trying to catch a falling knife. This is where taking your time and researching the market becomes so important. If you invest in a great crypto asset like bitcoin, chances are high that eventually its price will recover and even significantly surpass previous highs. This is a great opportunity to build your portfolio. For those investing with the dollar cost averaging method, you can continue doing what you've always done. Although during bear markets I like to put even more money into the market. Much of the noise in the market will always be when coin prices go up during the bull market and then a lot of people will get involved. By that time it is too late to make much of a profit. The real money is made during bear markets when prices suffer. This is the best time to build your portfolio. Put in the hard work during a bear market so you can fully enjoy bull markets. This is a great opportunity to build your portfolio. For those investing with the dollar cost averaging method, you can continue to do what you have always done. Although during bear markets I like to put even more money into the market. Much of the noise in the market will always be when coin prices go up during the bull market and then a lot of people will get involved. By that time it is too late to make much of a profit. The real money is made during bear markets when prices suffer. This is the best time to build your portfolio. Put in the hard work during a bear market so you can fully enjoy bull markets. This is a great opportunity to build your portfolio. For those who invest with the dollar cost averaging method, you can continue to do what you have always done. Although during bear markets I like to put even more money into the market. Much of the noise in the market will always be when coin prices go up during the bull market and then a lot of people will get involved. By that time it is too late to make much of a profit. The real money is made during bear markets when prices suffer. This is the best time to build your portfolio. You put in the hard work during a bear market so you can fully enjoy bull markets. during bear markets I like to put even more money into the market. Much of the noise in the market will always be when coin prices go up during a bull market and then a lot of people will get involved. By that time it is too late to make much of a profit. The real money is made during bear markets when prices suffer. This is the best time to build your portfolio. You put in the hard work during a bear market so you can fully enjoy bull markets. during bear markets I like to put even more money into the market. Much of the noise in the market will always be when coin prices go up during a bull market and then a lot of people will get involved. By that time it is too late to make much of a profit. The real money is made during bear markets when prices suffer. This is the best time to build your portfolio. Put in the hard work during a bear market so you can fully enjoy bull markets. The real money is made during bear markets when prices suffer. This is the best time to build your portfolio. You put in the hard work during a bear market so you can fully enjoy bull markets. The real money is made during bear markets when prices suffer. This is the best time to build your portfolio. You put in the hard work during a bear market so you can fully enjoy bull markets.
Making passive income
Many of you know that I'm a big fan of making passive income by borrowing portions of my bitcoins. The problem with this is that I'm from the US and recently many of the major lending services have stopped accepting new deposits from Americans to earn interest. Not only that, but interest rates are drastically declining across the industry. Almost to the point where I started debating whether it was even worth risking giving my precious bitcoin for the measly interest given to users who have a larger amount of bitcoins. Would it be better to just send my bitcoins into cold storage and wait out the storm that is the bear market. The situation might be a little different if you're not American. But if you're like me and already have some cryptocurrency lending services, what should you do? This is what I decided to do. I withdrew my funds from Blockfi a long time ago, and recently took my bitcoins off Celsius. The prices were reduced to an amount that the rewards just didn't match the risk I was willing to take. There were much better opportunities elsewhere. For the moment I hold a good amount of crypto on FTX where I can earn 8% from my first $10,000 worth of crypto and 5% from everything after that. I also continue to hold bitcoin on both Ledn and Nexo for the time being. Besides what I mentioned above, there are other opportunities to make your bitcoin work for you and earn passive income. Such as lending on exchanges like KuCoin, and also being a liquidity provider on DEX. One thing is for sure and that is that making passive income with bitcoin has become much less passive if you want to maximize your income. You need to keep up with everything that is going on in the industry and find the best one for you.
Care for yourself
Something that is incredibly underrated in this market is actually self-care. This market can be an extremely tiring and stressful place if you let it. As you can see over the past few months, during bearish times, the price of bitcoin can often become boring. If you have become quite stressed or burnt out on this market, there is nothing wrong with just taking a step back and taking a much needed break. You don't want to be the person who is so stressed out by this industry that you sold bitcoin, an asset that could change your life if you just had the conviction to hold onto it for a few more years.
As for me, I'm trying to not only gain significantly while prices are low, but also become more knowledgeable in the crypto space. During bullish times, it's almost impossible to keep up with everything that's going on in the market. Now I have a chance to learn about new projects and improve your skills through experimentation. Learn how to use decentralized DEX and do layer 1 to layer 2 circuit swapping. Experiment with making bitcoin transactions on Lightning and consider starting your own node. Look for the best places to pledge your coins and the best lending services to suit your needs. Finally, purchase Ledger and learn how to take custody of your own coins. Or if you're a cryptographer like me, keep writing and aiming higher. Maybe eventually you'll be able to get a job in the crypto industry.
Make the decisions and moves today, it will ensure the best future for you.
What about you? What are you doing now with bitcoin and cryptocurrency to set yourself up for the future?