Introduction
The crypto bear market is a continuous period in which the value of cryptocurrencies is falling. Cryptocurrencies have seen a lot of volatility in the past year. It means buying and selling confidently may take a lot of work. However, there are steps you can take to make sure your crypto trading is done right:
Make educated decisions
- Understand the market and do your research.
- Don’t sell.
- Invest just what you can lose.
- Don’t invest in something you don’t understand or don’t believe in (i.e., marijuana stocks).
DYOR
- Do your research.
- Don’t trust everything you read.
- Don’t jump on the latest trend, especially if it seems too good to be true.
- Don’t invest more than you can afford to lose; try not to let your emotions get the better of you when investing in crypto assets.
Create strong passwords
In the crypto bear market, it’s essential to protect your assets. To do this, you need strong passwords. How can you create a strong password?
The first thing you should do is use a password manager like LastPass or 1Password. A password manager will generate and store random passwords for all your sites. They generate strong passwords for each site in advance so that when you sign up for new accounts, you only need to copy and paste them into the login fields.
You should ensure that each of these passwords is unique: don’t just reuse one across multiple sites! It provides an extra layer of protection against hackers who try to breach your wallet or cryptocurrency exchange account by guessing how many letters they should try adding before they hit the correct answer. Finally, it would help if you changed these passwords regularly—every few months at least—to avoid being hacked because someone guessed yours correctly after watching how often people tend to change theirs online.
Use a hardware wallet.
Hardware wallets are another form of wallet that is more secure than software wallets but have different drawbacks than paper wallets.
In a hardware wallet, the keys are stored offline in a secure element that is not connected to the internet. It makes it so that your private keys aren’t exposed to any risk and can be used for long-term storage. It means that even if someone could steal your hardware wallet, they would only be able to access your funds if they had physical possession of it at some point during their possession period.
Hardware wallets are also significantly more expensive than software wallets since they require more complex manufacturing processes than traditional USB sticks or SD cards used by most cryptocurrency-based wallets. However, these added expenses may be worth it if you’re looking for an extra layer of protection between yourself and any potential hackers who might try to target your cryptocurrency holdings for theft purposes.
Understand the project you’re investing in
- Understand the project you’re investing in. Look at the team product and market. Reading their website’s whitepaper, roadmap, or other documents.
- Ask questions on Telegram or Discord if there is a community around the project – this will help you understand if this is something that people are interested in using and how many people are involved with it.
- Find out what problems does this company solve for its users? Without user-friendly solutions, it might be worth investing money into a new project like this!
Crypto markets can be risky, but they have great potential.
The crypto bear market can be volatile, and it’s possible to lose money by investing in them. You should invest just what you can lose. Even still, the growth potential is excellent.
The crypto markets are still young and have a lot of room to grow – they currently represent less than 1% of the global GDP (a market capitalization of $200 billion). The technology behind cryptocurrencies is powerful and can disrupt many industries, meaning there will be plenty of investment opportunities in the future as new products are built around blockchain technology.
Conclusion
These are only a few tips you can follow to ensure your crypto trading is as safe and profitable as possible. For more information, check out our other articles on crypto trading basics and strategies.