What Coin Should I Trade in a Bear Market

 

First of all, I will advice you to read the article on "Things you need to know in a bear market". 

Many who are new to the crypto space most especially during the last bullrun still find it difficult to believe the current state of the crypto market because of the narrow view or narrative they were taught about the crypto market. 

Now, only few among the new traders understands what a bear market is and what it can do to a long term investor (trader).  

OGs in this market understands the importance of a bear market and yet they also understand the possible ways one can still cash out in this bear market. 

This article might not give you a clear understanding of what you should know about the entire crypto space, this is why as a new crypto trader, you must pass through some crypto trading courses to be able to understand what a bear market is. 

How Do I Trade in a Bear Market?

There are no possible ways of trading during the bear market. You just have to be active in the space and keep a good positive character towards the market. Join a community of friends with the same goal of a crypto trader. 

Trading during a bear market can sometimes be very frustrating because of the imbalance of the movement of crypto assets (coins). So, most newbie tend to find it difficult to have a successful trade at the end of the day. 

What should I Do? then. 

It is important to note that, during bear market, you as a crypto trader should be able to spot out the best crypto project from the bad, why is that. it is because bear market brings out the worst project and some others don't end well during that period. Your ability to spot that, will enhance your chances of winning your trade or making profits from the bear market. So, what you should do, is to keep studying the market movement and trends using your FA and TA skills.  When you understand FA, you will make out the most in a bear market (long term holding). 

Should I think long term or short term.

 What you think during the bear market does not really determine your chances of making good cash when they is bullrun. This is why you need to DYOR before investing your money in any crypto project. There are projects that will do well after the bear market  and there project thats will crash also, you just have to be smart in FA and TA when looking for an asset to invest in. 

So, thinking long term  or short term comes when you know that the asset you are holding have been critically checked by you and you have been able to look at the following:

1. Market Cap during listing and Trading periods. 

2. Trading Volume.

3. Supply.

4. Blockchain integration.

5. Exchanges.

6. TVL.

8. Holders. 

9. Community comment and activeness.

10. Project Team or Developers.  

With the above ten. you should be able to decide what is best for you. 

What kind of Coin Should I Trade?

There are millions of coins out there in thousands of exchanges. To spot the right coin you need to look at the following:

1. Total Marketcap of that Asset.

2. Trading Daily Volume in Exchanges.

3. On what exchange is the coin.

5. Use case of the crypto coin or token.

6. Look at the monthly close, if it is bearish or bullish.

7. Market sentiments on that asset.

8. Developers views. 

Bitcoin still remains the best coin to invest in. Looking at what it has to offer, same way you should look at other altcoins you want to trade during bear market. 

ETH, BNB, ADA, SOL, MATIC, 1inch etc. These are coins with great use cases and also good for a bear market. 

However, trading in a bear market involve a lot of risks. while you trade, always remember to trade responsibly and never forget to stay Close to your Risk management.