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Smart Strategies for a Bear Market

As I wrote in this article, the bitcoin dominance is at a three-year low. This could (!) be sign of a beginning bear market and the market looks very red right now. I want to share some trading strategies for the bear market. These strategies have to fit to your personal risk awareness and long-term strategy.

Bear Trading

If you just stood on the sideline of the cryptomarkets, maybe this could be a good starting point to acquire your first bitcoin. Nobody has a crystal ball and the markets could continue to fall. So,I highly suggest to use the DCA strategy to invest, which means you split your invest. If you want to invest 1000$, split it to ten invests of 100$ each over a period of 10 weeks. For a beginner is good service for buying bitcoin, it has higher fees but you don’t need to a full KYC, it´s very easy to use. Unfortunately, it is only available in Europe.


I know some people would kill me for the following statement but I am not a big fan of holding coins to death. I don’t talk about bitcoin, I dare to touch my btc stack but I would sell all of my other coins. Nobody lost money from taking profit. I came into the crypto 2017 and I kept all of my positions during the bear market and it is not fun. A lot of coins are still >90% down. So, don’t be afraid to sell your coins. You can use the DCA strategy for selling as well, especially if you´re not sure what to do. For instance, if you’re 200$ up and do not know what to do, just sell coins for 100$. It does not hurt. But like I mentioned earlier, it all depends on your long-term strategy, I know some people who don’t care about fiat gains, they only care about to have more satoshis. I don’t want to spread fud but this could only be the beginning of a bear market. When you sitting on a huge altcoin bag, it´s not the best decision to hold because you’re 20% down. In a real bearmarket your bags will be down up to 90%.


Another suitable but highly risky strategy is to short the markets. I use binance future perpetuals, binance has the biggest liquidity and, that’s important, offers you the ability to test your shorting strategy with a test account. I used the last months to get familiar with the interface and to get a feeling of entry points and stop losses. I personally use a leverage up to 15% and very tight SL. But to be clear, this is a high risk strategy you have to have some experience with trading. You can find various in depth tutorials on youtube.


If you totally convinced in bitcoin and crypto, you can also get a job. What I mean by that? Well, acquire fiat and invest it. Sell some stuff on ebay or craiglist and put that money into crypto. The winners of the next bullrun are made in the previous bear market. Like stated above, I came in 2017 and invested every month, it´s not easy to put money into an asset which is constantly going down and a lot of my friends thought I am crazy but at the end I had a very low btc acquisition price. But take your time, you don’t have to be fast. Acquire money and wait till the markets go sideways and then invest.


At the bottom line I want to close this article with a quote from the Book “How to Not Get Rekt Trading Crypto”:

“Bull markets are fun and ecstatic. However, they last for a short time and they do not really teach you anything as a trader. Bullish trading environments give you a false sense of skillfulness that only long-term traders have. Nothing really beats a bear market. They give you more time to learn and have a more realistic price movement. Bulls often trade on speculative value alone. However, bear markets tend to be all about fundamental value and what a project really offers. On that account, the next time you become sad that bitcoin entered a bear market, do not be! You have just received even more time to become a true professional and accumulate some satoshis.”

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