It’s all too easy to be on the wrong side of a crypto trade when markets turn wildly volatile, but that doesn’t mean you have to sit there and watch your portfolio plummet by the hour.
2. Use indicators to find the best entry point
For investors that possess a basic or higher understanding of technical analysis – the practice of predicting an asset’s price movements based on chart trends, indicators and patterns – it’s possible to use certain indicators to gauge when an asset has reached a bottom.
3. Diversify your investments across different crypto assets
Just like it’s nearly impossible to accurately predict the bottom of a bear market, it’s also impossible to know exactly which of the 17,000+ cryptocurrencies will recover the fastest or go on to rally the highest.
4. Don’t freak out
This might seem like a no-brainer, but managing your emotions during bear markets is not as easy as it sounds. In fact, it’s often described as being the hardest thing to master when learning how to trade professionally.