Crypto markets are experiencing one other sharp selloff led by Bitcoin BTC/USD, which is now hovering across the $21,000 degree.
In mild of the current occasions, maybe it’s time to revisit the full 101 information from Crypto Whale, recognized for his “unbiased and contrarian” views, on tips on how to survive the Bitcoin bear market, printed in July 2021.
Settle for Actuality: Based on him, we’re within the “denial stage” of the market cycle, provided that standard crypto influencers are nonetheless calling for brand spanking new all-time highs.
“Whereas many nonetheless imagine Bitcoin will push past $100K or $1,000,000 within the quick time period, I believe these predictions are a combination of wishful pondering and irrational exuberance. It’s very clear we’re in a bear market,” he mentioned.
“This market is not going to be forgiving, and proceed to develop the losses of those that jumped in late, and did not correctly handle their dangers.”
Do not Cave To Feelings: Mr. Whale suggested in opposition to investing with feelings and beneficial following bears in a bear market. In his view, Bitcoin will ultimately tank again under $7000 in 2022.
Money Is King: “In bear markets, Money is King,” he said, explaining that having funds within the financial institution beats protecting them on an unregulated trade.
“Inflation is round 5% within the US. Whereas that may appear to be quite a bit, think about how a lot you’ll lose if Bitcoin dropped 85% or 95%.”
Do not Purchase Dip Too Early: Highlighting one other mistake that almost all buyers make, Mr. Whale cautioned in opposition to shopping for the dip too early.
“This subsequent bear market is anticipated to be the most important one ever. With all the world centered on the crypto business, the volatility shall be loopy,” he defined whereas advising in opposition to shopping for till most individuals have bought in worry.
Keep away from ‘Shit Cash:’ He additionally beneficial avoiding funding in “shit cash and zombie initiatives” fully and focusing as a substitute on high quality cryptocurrencies with robust fundamentals.
“Throughout unsure occasions, it’s essential to give attention to initiatives with rock-solid utility, robust fundamentals, and sturdy aggressive benefits,” he mentioned.
Editor’s Observe: This story was initially printed on July 20, 2021, and has been re-published with edits.