For a beginner

Cryptocurrency bear market: what is it?

Cryptocurrency bear market: what is it?

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You need to understand the basics and learn the terminology to make money on cryptocurrency successfully. For example, you should understand what a bear market is in cryptocurrency. This wording can often be found in thematic communities. You will be able to feel free on the stock exchange understanding the meaning and features of the trend.

What is a bear market in cryptocurrencies?

There are many animals in the crypto market, the main are bulls and bears. Bulls are traders who are actively buying cryptocurrency and the price of it rises as a result of it. Bears are opposite. These are traders who have accumulated assets, earned on them and are trying to sell. It means that a cryptocurrency bear market occurs when most of the participants sell their crypto assets.

It is a trend in the market, characterized by a gradual decrease in the value of coins.

The value of assets may rise slightly from time to time since the time when the cryptocurrency bear market has begun, but the general downward trend continues for a certain period.

How long does a bear market in cryptocurrency last? It lasts until the bullish starts and the asset price rises again. Experts believe that an increase in the value of the crypt by at least 20% from the previous values can be called the period of the bulls.

Bear market: a good time to invest or unjustified risks?

Figuratively speaking, bear pulls the cryptocurrency down with its heavy paw. This event is characterized by a declining market and most traders who are trying to keep their profits sell the currency. There is an opportunity to diversify your portfolio, that is, stock up on different cryptocurrencies at a low price but it is more difficult to earn at this time.

Remember that a bearish trend is always followed by a bullish one. To make correct predictions and buy coins that will really become more expensive is the main task of a trader.

How can a novice trader survive the crypto bear market?

It is difficult to predict accurately how long a bear market in crypto will last; so you need to learn how to survive in any conditions.

There are a few tactics that can help you stay afloat:

  • Buy at a low price. Traders who choose a certain strategy take advantage of the price decline and replenish their cryptocurrency holdings, hoping for further growth. But it is important to calculate risks and buy in moderation, because reliable ones are not always justified.
  • Search for other ways to make money. Cryptocurrency helps to earn money not only by selling. Binance exchange and other popular platforms offer users an alternative. For example, staking. It is the storage of assets in a cryptocurrency wallet to maintain the activity and security of the platform. In simple words, the crypto will be temporarily blocked for a fee.
  • Learn and improve your strategy. Bearish trend is a low threshold for entry into the market for beginners. Novice traders can use this period to improve their trading skills in the stock exchange, so that when the bull period comes, they will feel much more confident.

How to recognize a bear market in cryptocurrency?

Market is always growing; traders are buying up assets, as a result of which the price of the crypto is growing. In the certain moment investors’ interest declines and asset owners tend to sell them. At this stage the price growth stops and there is a decline, there are more sellers than buyers in the market. The starting point of a cryptocurrency bear market period is a decrease in the price of assets by more than 20% of the maximum value for a certain time. It can last from several months to even several years.

The cryptocurrency bear market period is not the only factor that affects the price of the crypto.

The volatility of the market is extremely high, and trading on exchanges, even the most popular and reliable ones, always carries certain risks.

It is important to understand the basics and subtleties of trading, to be able to analyze trends and choose the right behavior to earn income on the stock exchange. The easiest time to learn this is when you have the support of experienced mentors and a large community. You will understand how to trade in the cryptocurrency bear market profitably with minimal risk coming to Crypto Crew.