Crypto markets are experiencing another sharp selloff led by Bitcoin BTC/USD, which is now hovering around the $20,000 level.
In light of the recent events, perhaps it is time to revisit the complete 101 guide from Crypto Whale, known for his “unbiased and contrarian” views, on how to survive the Bitcoin bear market, published in July 2021.
Accept Reality: According to him, we are in the “denial stage” of the market cycle, given that popular crypto influencers are still calling for new all-time highs.
“While many still believe Bitcoin will push beyond $100K or $1,000,000 in the short term, I think these predictions are a mixture of wishful thinking and irrational exuberance. It’s very clear we’re in a bear market,” he said.
“This market will not be forgiving, and continue to expand the losses of those who jumped in late, and failed to properly manage their risks.”
Don't Cave To Emotions: Mr. Whale advised against investing with emotions and recommended following bears in a bear market. In his view, Bitcoin will eventually tank back below $7000 in 2022.
Cash Is King: “In bear markets, Cash is King,” he stated, explaining that having funds in the bank beats keeping them on an unregulated exchange.
“Inflation is around 5% in the US. While that might seem like a lot, imagine how much you would lose if Bitcoin dropped 85% or 95%.”
Don't Buy Dip Too Early: Highlighting another mistake that most investors make, Mr. Whale cautioned against buying the dip too early.
“This next bear market is expected to be the largest one ever. With the entire world focused on the crypto industry, the volatility will be crazy,” he explained while advising against buying until most people have sold in fear.
Avoid 'Shit Coins:' He also recommended avoiding investment in “shit coins and zombie projects” entirely and focusing instead on quality cryptocurrencies with strong fundamentals.
“During uncertain times, it’s important to focus on projects with rock-solid utility, strong fundamentals, and durable competitive advantages,” he said.
Editor's Note: This story was originally published on July 20, 2021, and has been re-published with edits.
Visit Benzinga's Crypto Homepage - 1,000,000+ depend on Benzinga Crypto every month
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.