Crypto currency : How To Survive In A Bear Market?

                How To Survive In A Bear Market  Hello my dear friends, I hope you all are doing well. Today I'm gonna share with you ho...

               How To Survive In A Bear Market

 Hello my dear friends, I hope you all are doing well. Today I'm gonna share with you how you can make a profit and survive this volatile market, especially when the market is very bearish.

Ok ok wait, if you don't know what are the meanings of these terms(Bullish & Bearish) let me explain you.

⦿Bullish:

When we see an eternal higher trend in the market or the market is touching all-time highs, then we tend to decide it is an optimistic market. During this trend each quality category appearance terribly expensive. And a few investors get treed during this trend as a result of they can not price the market in a very right approach, this can be referred to as pump and dump method.

⦿Bearish: 

When we see an eternal lower trend within the market or once the market crashes from all-time highs, then we tend to decide it is a pessimistic market. During this trend, several investors typically get terrified and unload their holdings in a very low value, that they suffer a loss.

So before investing we tend to should look at the trend, to form a decent call.

In this weblog I'll discuss Cryptocurrency, therefore there's a Cryptocurrency connected proven fact that I wanna tell you.

✦Fact: 

Over 20% of the Bitcoin(BTC) mined so far has been lost. According to Satoshi Nakamoto every day we lost some Bitcoins which makes everyone's coin slightly more valuable.

⦿Short Term Market Cycles:

Every single asset category incorporates a boom and bust cycle. We tend to should recognize why associate degree asset's value goes up or down in brief term. It's directly coupled with human psychology and emotions like 'FEAR' & 'GREED'.
This is however the act currency conjointly fluctuates daily. Currently, Cryptocurrency will fluctuate 100x generally 1000x in exactly in the future, that is why it's the foremost riskier quality category ever discovered. Cryptocurrency price until currently in the main depends on offer and demand. We tend to still do not know the important price or basic price of any Cryptocurrency which is why individuals do not know the most effective tag for one token.

⦿Long Term Market Cycles: 

Besides human emotions, there are some macro factors that manage the value of any Cryptocurrency. These macro factors affect the marketplace for the future. Like once Governments and Central banks of any country cut their interest rates on borrowing cash for long terms, then individuals typically take loans and pay cash, and also the economy grows swimmingly.

But the most downside came once these central banks charge the high rate on loans then the market crashed, as a result of then individuals haven't got the cash flow to pay additional.

The same happens with any quality category, and also the final result's a crash or a depression, we tend to see these sorts of events in past. At once most of the governments haven't got any rules on Cryptocurrency, still currently, it's a free market, however whenever any government takes any action on that, the costs as fluctuate heavily. conjointly in recent times, we tend to see some events wherever Elon Musk same his company Tesla wouldn't receive BTC(Bitcoin) as a result of its mining method harms the atmosphere and also the once impact was the full Crypto market folded.

When I am scripting this weblog, attributable to COVID-19 the governments and central banks giving loans to individuals to pay additional, however once a definite time all of them ought to pay back. Then another market crash or market is anticipated in close to future.

✦BTC Halving Factor: 

BTC halving happens in every 4 years or we can say after mining 210,000 blocks. This reduces the 50% amount of newly mined BTC, so if the demand gets the same or high and the supply became low then the price will automatically go up. I already discussed it in my previous blog, click on this link and check out 🠆🠆 Crypto Currency 🠄🠄 link.

Note: After each Bull or Bear market, we tend to see associate degree opposite market starts therefore we've got to identify that point to form additional profit.

⦿Hyperinflation & Depression Bear Market:

When hyperinflation hits the market then the cost of living will gradually increase and at these times people stop their luxurious spending and also at that point of time many people want to hold their money just to buy essential things. That can be a cause for a bear market in Cryptocurrency, still now we didn't see anything like that. For this scenario, people save precious metals or buy them. So this reason can cause you to sell off your holdings. Then just like the domino effect, we can see here another bear market.

Also, depression is the worst time to exit from your asset holdings, the problem is you don't know when the depression will start. In these times either you have to sell your assets or buy because you don't know what is the real value of that currency and also don't know when the price will start to surge or to tanks so you can make a profit. Still now Crypto market didn't have any impact due to the recent depression for Covid-19, though the prices went up higher in this pandemic and that too throughout the year. Many people even made a profit from it.

⦿Cryptocurrency Legal Tender:

When I am writing this blog, a country named El Salvador makes Bitcoin and Cryptocurrency legal tender in their country. That means the population of this country can invest or trade without any problems. This will also help the Crypto market for more liquidation and the market will have more cash flow.

➤What is the meaning of Legal Tender: In very simple words, legal tender means if anyone wants to give a currency as an exchange of any goods or service then the service provider has to accept that currency.

Like this, if every country makes Cryptocurrency legal tender, then their population can have the right to freely invest and trade on Cryptocurrency. And this effect may cause a new market cycle.

⦿Conclusion:

Now Crypto bear market can make you worry but you have to understand that this is a very normal and necessary part of any asset classes market cycle. We cannot expect that every asset's price will go up in double digits every week or every month. The short-term volatility may happen but the long-term upward trend will continue if we patiently wait for the right time. We must remember "What Comes Up Must Come Down Though". Because of the big rally of Cryptocurrency in 2020, maybe 2022 be the year when the decline begins.

But the question is how hard the bear market will hit. Now the good news is more countries are adopting this so, it is likely to survive every type of bear market scenario on the table. Bear market or correction in the market is good for new investors to start.

Here are some bear market hits in recent days, the reason may be for some news or because of some tweets, but still we saw some hits of the bear market-->

Recently we saw the Anonymous group threatened Elon Musk for his recent tweet activities and market manipulation. So we must learn from it and be more cautious about our money.

I will come back soon with my new blog still then happy investing, thank you😀.

Editor:  Sk Elaf Ahmed, Rupak Chowdhury.