A bear market is when cryptocurrency prices as a whole are falling significant amounts compared to recent times. Generally, these times follow an incredibly positive, high-priced market. Traders might seem more pessimistic than usual, and millions of dollars will pour out of the market. It might seem like a bad time for crypto, but all markets go through periods of drought. Generally speaking, a bear market refers to a strong market downtrend that presents significant falling prices over a relatively short period of time. When compared to traditional markets, cryptocurrency markets are smaller and thus more volatile. Therefore, it is quite common to see stronger and prolonged crypto bear markets, where 85% price drops are not that rare.

In traditional markets, some say that a bear market is indicated when a 20% price drop occurs within a 60-day period. 

Here are a few things that you can do as a cryptocurrency investor when faced with a bear market.

• Make the right buys. The bear market can just be the right time for you to make some good cryptocurrency purchases that will prove beneficial in the long run. ...

• Diversify your cryptocurrency portfolio. ...

• Think long-term.


Cryptocurrency investments can seem tricky when you are faced with a bear market, but some smart choices can make it worth your investment


• A bear market could be a good time to experiment

• Not all cryptocurrencies go through dips at the same time

• A bear market could be a perfect catalyst for long-term investments


Here are some things you can do to make profits in a Bear Market:

Yield farming

Yield farming is the act of staking, or locking in, your cryptocurrencies into a platform to earn interest on them


Similar to yield farming, staking is the act of locking in your cryptocurrencies. 

Analyze smaller projects

Newer crypto projects are a dime a dozen, but there are certainly diamonds in the rough. If you spend some time doing research on the newest tokens and investing in them as they become available, you can likely profit off of the right projects. Even if we’re in a bear market, you’ll ideally get in early enough that even a slight increase would generate reasonable gains.

There’s always something going on in the market. You just have to learn how to properly pay attention.

Tips for profiting during a bear market


While the aforementioned are valid methods of profiting during a bear market, here are a few tips to consider no matter how you choose to participate.

Don’t fall for FOMO

The fear of missing out (FOMO) is a significant factor when it comes to trading in any industry. Point is, don’t lose your money investing in something just because others say so. 

Never invest more than you can afford

You’ve surely heard this multiple times by now, but it’s always worth stating. Never invest your life savings in something as volatile as cryptocurrencies. The prospect of doubling all of your funds is exciting, no doubt, but it’s not worth the alternative.

Learn how to analyze

It’s best to follow different charts around the Internet from reputable sources. Mix your knowledge with both technical and fundamental analysis, follow experts and reputable content creators on YouTube and Twitter.