With the recent drop in the crypto market, many investors are worried that they have lost all of their investments. This is not the case, there are multiple ways you can safeguard your finances during a bear market.

If you’ve been watching the market recently, you would have noticed that most coins are down by 30-70% from their all-time highs.

While this is a great opportunity for patient investors to enter the market, it can be quite intimidating for new investors.

Investing in bear markets is not as easy as investing in bull markets, but as Albert Einstein said “The only thing that is constant is change”.

There are many strategies an investor can use to maximize returns when investing during a bear market such as:

  1. Day trading is a great way to mitigate market volatility. With daily price movements up to 20% for the major coins, day trading is a great way to accumulate cheap coins. For example, if you invest $100 into a coin with a 30% drop in price, if you’re able to sell it within 24 hours at the current market price, then you would earn an extra $30.
  2. Trading on small exchanges is also another risky but profitable strategy in bear markets. Smaller exchanges like KuCoin and Cryptopia don’t have as much volume. But they have a lot of cheap coins.
  3. Buy throughout the year rather than investing just at the beginning of a new year. If you invest in January when the market is at its all-time high, then there’s a high chance that you might lose some of your investments by December due to market volatility.
  4. Hedging is the key. If you’re holding a portion of your investment in an asset that is down, there are many strategies that you can implement at different levels during the bear market to maximize your returns.
  5. Diversify always. There are many different types of coins that are created, with different values and uses. Each coin has its own specific value that gives it its own market value.
  6. Don’t panic. The market is always making small corrections, but if you react to every single correction, you will be at the top of your mistake. If you hold for a longer period of time, then some of the changes might not bother you as much as they initially did.


Do not panic and keep calm. A bear market is a natural part of the market cycle, it can make bitcoin and other cryptocurrencies vulnerable especially if you’re not prepared for it.

The market is always going to change and there will always be new opportunities that arise. Investing in the right coins is key, but also understanding what you’re investing in.

To be really successful at investing, you need to have an open mind and be willing to take risks with your investments.

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