In the crypto money market, investors can experience more losses by panicking, especially during periods of decreases. Cameron Fous, one of the popular analysts and experts in the market, shares 3 tips that will allow investors to survive, so to speak, in declines.
Keeping Up With Trend Changes
According to the analyst, the first way to exit the bear market with the least loss is to keep up with the trend change. At this point, investors can see that the trend has changed or will change by following various technical indicators and can change their investment strategies accordingly.
Analyst investors state that the more they are exposed to the chaos environment, the more mistakes they will make, and states that they need to get the emotions out of the business.
For this reason, according to the analyst, if investors are receiving a bear market signal, they should sell their cryptocurrencies. At this point, the strategies used in the bull market also need to change. The analyst states that the market progresses in cycles throughout the year and that a different strategy should be adopted in each cycle.
Earning Passive Income
Fous states that in the bear market, there is also a method by which investors can make a profit rather than making a loss: staking. With staking, investors can earn a kind of interest income by locking their cryptocurrencies.
Therefore, even though the prices of cryptocurrencies change during the decline periods, the income increase with staking can continue. At this point, investors should research the APY rates of the projects, examine whether the project is reliable and take a staking step after the research.
Downsizing or Waiting for Positions
The third step is to drastically shrink your positions or wait until the market turns in your favor. The analyst states that this situation may last for 3 months or 2 years. At this point, as we always say, it is important for investors to invest with money they do not need.
In addition, it should be taken into account that the declines may continue, although the decline periods make new additions to the investors as buying opportunities. Therefore, following graphics and trains is also important at this point.