Buy the dip! Buy the dip! You probably did, but the dip deepened, and you found yourself in the bear market. Bitcoin’s price doesn’t seem to be taking off anytime soon, but you probably want to sell and make some profits. Here are five key considerations for selling Bitcoin in a bear market:
- Wait till the Trend changes.
- Apply the short-selling method
- Invest in other crypto assets.
- Use Dollar cost averaging
- Stay calm
If you are a seasoned crypto trader, you are familiar with the ebb and flow of the bear market. But if you are new, you might be shaken with fear. Fear not! Here, we tackle how you can make the best out of selling Bitcoin in a bear market. Keep reading as we unravel five considerations to note when you sell your Bitcoin without losing your wallet or mind!
The Five Key Considerations for Selling Bitcoin in a Bear Market
Finding your way around the bear market might be confusing, but it is not difficult. You just need the right strategies to approach the market to maximise gains and minimise risks.
1. Wait till the Trend Changes
I know you are itching to sell that Bitcoin, but wait. Trading in the bearish market can be tricky, and the best move is often to HODL since the bull market will be back. Ignore all FOMO(Fear of missing out).
The bear market is notorious for snatching a trader’s portfolio. Many investors lose big by prematurely opting out of the market. Hence, it is often best to wait it out unless you are adept in short selling and other considerations we will outline on our list. If you are battling the FOMO, stop panicking and step back from going long (selling).
2. Have You Heard of Short Selling?
You don’t always have to come out of the bear market with a loss. Since you have decided to sell off your Bitcoin, consider short selling. But, you should note that it is an investment strategy to tread cautiously. That said, short selling is selling at a high price with the hopes of repurchasing it when the price is lower.
It is the exact opposite of the typical trades beginners are familiar with—buying at a low price and selling at a higher price. Short stems from the ability to profit even though the market is down. How this happens is you borrow a particular crypto and sell it immediately. When the price drops, you repurchase it. You receive a profit, which is the difference between the two prices.
You should only short-sell on trusted platforms like Breet. And you want to sell Bitcoin when it is high and repurchase it when it’s low. This method has saved many investors from accruing losses. It is a notable consideration regarding selling Bitcoin in a bear market.
3. Invest in Other Crypto Assets
While the market seems bleak, some crypto assets are thriving. Once you get a good deal on your Bitcoin sale on the Breet app, it is time to diversify your portfolio. This tactic is an effective way to win back the money you may have lost to the bear market.
All you need is to do your research (DYOR) to find promising crypto assets. Here are a few things to watch out for while you research:
- How well the assets have performed in the past
- The assets’ all-time high
- The assets’ roadmap
These factors often show the assets’ future price and growth projection. While doing your research, it is also essential that you learn how to build a profit-rich crypto-investment portfolio.
4. Use Dollar Cost Averaging (DCA)
Dollar-cost averaging is one of the best ways to beat the bearish market. After you sell your Bitcoin at the best price, you can opt for dollar cost averaging and reinvest using a tested and trusted crypto exchange.
Dollar-cost averaging is investing a fixed amount at intervals (daily, weekly, or monthly) regardless of the price of Bitcoin. This tactic has proven incredibly effective during bearish markets and can earn you much profit.
Instead of going all in, you can try Dollar Cost Averaging. The logic is that with Dollar Cost Averaging if the price dips further, you buy again and aren’t losing as you would if you go into the market head-on. This method reduces the risks and offers an opportunity to win big while selling Bitcoin in a bear market.
5. Keep Calm
While keeping cool in the bear market might be challenging, it is necessary. The fear, uncertainty, and doubts (FUD) that surround the bear market often lead many to make impulsive decisions. Panicked investors make poor decisions that shut them out of much more significant gains. But you should strive to be different.
It’s vital to stay updated. But social media and online forums aren’t the best way to go about it. Take your time to dig deep into the market and figure out what might have plunged it into a bearish state.
Frequently Asked Questions (FAQs) About Selling Bitcoin in a Bear Market.
Is it safe to buy Bitcoin in the bear market?
Bitcoin has a spectacular standing in the crypto market. As a result, it is a safe investment, even in the harshest bear market. You can buy the dip while we are still in the crypto winter. Remember, however, to use dollar cost averaging!
Are we in a bear market?
Yes, we are in a bear market that started in early 2022 and has run well into late 2023. This bust cycle has been active for some time, so it is unclear when it will end, but one thing is sure: it will end.
What causes the bear market?
The bear market is by a downward price trend. Investors lose confidence and opt out when the market drops, leading to a much bigger downtrend. The mounting downtrends are what lead to a bear market.
How long do bear markets last?
We can’t say for sure. However, bear markets typically last between five months to two years. It is also significantly less than the bull market. It is difficult to tell where the market is headed in this bearish period.
Can Bitcoin crash to zero?
A complete and entire crash of Bitcoin is unlikely. Bitcoin is here to stay, and its popularity and growth mean it is not leaving anytime soon. As long as you do your research, don’t shy away from buying assets!
The bear market is not a favourite season among crypto traders; however, it is a part of the cycle that cryptocurrencies must go through. I don’t know how long the bearish season will last, but with this list, you can make the best of it.
Despite the bearish state of the market, crypto traders are still making profits. They exchange their Bitcoin for cash or a better-performing crypto using the Breet app to maximise this profit.
The Breet app is the best solution for crypto-to-cash and crypto-to-crypto transactions in Nigeria and Ghana. Breet features lightning-fast transactions, offers juicy exchange rates, and is highly secure.
Ready to get the most out of your Bitcoin transactions in a bearish market? Use the Breet app for the most seamless experience.