What Are Some Of The Things You Do During Bearish Situations?

in LeoFinance2 years ago

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Every crypto owner has the habit of checking the changes in the dollar value of their holdings, especially when it is spread to different portfolios. When it's in a bullish situation, there's a certainty for an increase, but the joy only comes when the increase in dollar or the percentage change is even higher than you'd expected.

Infact there's a different feeling to this. Whether it's the bear or bull market, everyone checks their holding, per minute, per hour, or day, the excitement that happens determines how people make their financial choices.

The feeling of getting richer by the day brings extra usefulness or validity to one's spending culture. Nevertheless, whether one's portfolio is going up or going down, it always influences an irrational choice or decisions, depending on the emotion that's triggered by this "loss" or "moon"


The Constant Sad Stories

When it comes to bearish situations, it's an entirely different story with similar experiences. People are quick to bemoan their loss with the effect of what they think they should've done. For example, when steem went from $8 to about 20 cents people with constant sad stories were flooding their blogs with regret stories.

They tend to curse their inactions especially when their bags rose to unimaginable figures and they didn't withdraw everything. It wasn't as if withdrawing everything was the right thing to do in that context, the reason why they feel they should take everything was that they can't believe they were very rich some months ago and now they've lost all that money.

People sulk, throw tantrums and begin to rethink each of their actions when their bag is going down. Especially if they kept the faith only to have their bag dip even further, they didn't believe it could be 50/50, this is the reason why predicting or reading the market as a result of previous cycles can go wrong.


Panic & The Feeling Of Inaction

The feeling of inaction is the mother of regret, this is why panic is what other people do. Now, no one is immune to panic, especially when they're dependent on crypto to run their lives. Panic happens in a bid to ensure safety. Because of the volatility of crypto, there's this need to guarantee some atom of safety and this is why stablecoins exist in the first place.

It's easier to be calmer with the changes to one's portfolio and some of the ways to establish this safety is by having stable assets. Now panic arises mostly from the fear of loss, (not that this is the only crypto situation that causes panic) especially when one is trying to cut their losses in order not to incur more loss.

So panic makes people choose half bread, rather than lose the whole loaf, it's a risk management mentality held by many crypto owners. While this isn't bad, it's a panic-based mentality that is surprisingly helpful in precarious situations.


Selling To Ascertain Safety

The effect of panic results in panic selling. Now, panic selling is caused by irrational decisions, but the goal is to stay safe while mitigating or reducing the degree of loss to a bearable extent. While panic-selling feels putrid on the surface, sometimes it helps people keep their sanity especially if they're going to interact with crypto throughout their lives.

Unfortunately no matter how solid, matured, or experienced we feel when handling situations with crypto, if one doesn't have solid assets outside crypto, they're sure to make irrational decisions, the only difference is that it wouldn't be definitive or impactful as to the choices or decisions that are going to be made by a person with no experience to handle or salvage bearish situations.

However, what we're currently experiencing is mild, so what if we're getting to the region of 50 to 70% loss in dollar value?


More MONEY.. More Safety?

I think rich people will still experience the urge to move their crypto assets because rich or not, no one wants to incur a loss. However, there's no solid strategy to cope with bearish situations. the gloom becomes even more rampant especially when you've keyed in with reading sad tweets or posts that tend to signal the end.

The selling of assets can prevent further regrets or it can even bring more painful regrets. Sometimes people sell for the fear of losing everything, but these assets go up in prices contrary to their predictions.

This further proves that one man's loss, is another man's gain and one man's gain is another man's loss, which further proves that we "win" some and "lose" some. Everyone isn't losing or gaining at the same time even when it's bear or bull, some people will constantly lose or win, this is a cyclical process.

We don't always win and the fact that we can lose is the entry point or advantage to another person. So, what are some of the things you're guilty of doing when it's bearish?




Interested in some more of my works?


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However, what we're currently experiencing is mild, so what if we're getting to the region of 50 to 70% loss in dollar value?

That will be crazy, especially if one depends on crypto to survive. I have been fortunate enough no to panic in these instances because I haven't been in situation(s) where I solely depend on crypto to cause me hitting that irrational sell button.
I think the long term plan of me have kept me unmoved whether we are in bearish or bullish season. I just focus on the goal.

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That's exactly where I'm going, if one depends on crypto to survive then surely they'll find ways to mitigate that volatility. Whether it's through stacking stablecoin and maybe other assets. Well the best way to grow crypto is not to be too dependent on it in the short run.

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Stablecoins have to be in one's portfolio, am looking at one or two more besides HBD but I don't like leaving my cryptos on exchanges.

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It's important. As a matter of fact, I want to save some, so I wouldn't need to sell my assets when the bear comes.

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Besides HBD, which other stablecoin would you recommend?

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Hahaha I wouldn't really recommend though, but I use USDT, I think it's the safest.
This is not a financial advise. 🤣🤣🤣🤣

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Okay just looking at other options I can utilize besides HBD, USDT is the one I use mostly too, actually never used anyone besides that.

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I don’t think that you need to rely on this, the initial task is to increase your assets today, to mitigate a hard landing)

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It depends, different people with different economic situations.

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No, only patience makes people wealthy and rich people know the value of their patience.

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Staking stable is also important very important and it give power to buy more during the bearish market too

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I would be ready for bigger losses, up to 80%), the main thing is not to panic, if this happens, time will heal it).

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Not many people have the time, some are more impatient.

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Yes, but you can learn this, you need to learn this patience, otherwise ... there is no point in doing it.

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It is more than not to be panic though it is very important to have because we might have an emergency that will require a lot of money

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Yes, such a situation may arise, sometimes, such a situation may have a long-term character, but, in any case, either sell or wait, the third is not given ... although no, you can still start buying, because the coins on the market are cheap. At such moments, it calms and gives hope that when the situation improves, you will sit in a white suit on a white camel and drink a cocktail)

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Bearish market is the time to buy more and accumulate as much as possible, when you believe I the vision of the project you have invested in the price won’t have much effect at the long run because growth will always be your main target.

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When there is an opportunity and there is an idea where to direct the funds, I do it)

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I think one has to be prepared and know days of such dips in the market or one's holdings are almost inevitable.
With that in mind panic selling becomes no option. These is something the new ones getting in on crypto have to bear in mind.

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Exactly!

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Long term has always been the plan and to beat bearish market long term plan must be put in place and to stay off market during bearish market not to have heart attack. Determination to do something always go a long way in creating wealth with crypto

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Actually great how we are opportuned to learn about this things here on Hive, I think the Hive fundamental set impacts us to think long-term and it's either that or you can't win here or rather pump in money.
Great place to keep learning around here

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Hive is a full package and I think for anybody that want to invest in crypto must first pass through hive because that is where the knowledge of it begins

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I think for anybody that want to invest in crypto must first pass through hive

I agree with you on that, start out with almost zero cost, learn as you go along. The knowledge we gain for free here are being sold out there for a rip off.

Some will come here focused on the money and get discouraged by slow growth.

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Slow growth is one of the best way to build, it will let appreciate how far coming and where we have been, the information has been really helpful and it has help me to grow with amazing pace

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Every crypto owner has the habit of checking the changes in the dollar value of their holdings

Especially we in Naija here, we smile at rise in dollar prices.

Another thing in the case of a bearish market, is only to emphasize, apart from no one wanting any loss, that human wants are insatiable. If it was in a case where its greenny, no one would flood their blog with regret or inaction stories but with praises on how strategic and proactive they were.

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Well I have never complained about price hahaha I just suck in the pain. Because complaining seems to spread FOMO. I just endure the bear market lol because I know there will be better days

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Spit out the pain, buy lidocaine, it will numb you, and go ahead!

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Hive, this is an alternate reality), everything is the other way around. In Ukraine, many suffer because of the rise in the price of the dollar, I'm glad) ... it's nice to be out of the system, lol.

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Thats quite the same here. Higher dollar prices adversely affects those who earn in the local currency but had little to no effect on those who are on the dollar thingy like some of us on Hive.

This is what is called the Hive). There is a thunderstorm over everyone, and we have a lightning rod. When everyone is panicking, we learn patience, we are strength!

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That's the spirit, sire.!!

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Absolutely right!

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I already have a past bear market experience so I'm not doing much.

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Well same with me, but I think this experiences might have different influence.

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Experience cannot be drunk away, as they say).

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Probably, this experience gave rise to a very right feeling - calmness)

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I am not doing much but I try not to look at the price because it doesn't matter until I buy or sell. If I was trading (different from investing), then I would just take the loss and move on.

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Hahaha I guess looking at the price sometimes creates this gloom. I use to check especially when I want to switch or move assets. We only lose when we sell hahaha

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Drive away despondency from yourself, it is like a worm eating you from the inside, use only positive).

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The only time I see the price now is when other people write about it or if it shows up in my face like PeakD or LeoFinance in the wallet section.

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Hahaha well, I check the prices not because I want to sell, sometimes it feels like am inborn attitude.

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Very wise.

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Bear market is different, just be mentally prepare when it come because I think that is where all the work will be done

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Panic selling is not just a textbook-reality or Hive-post-reality, but it is just as real as crypto assets ("Internet money") can be converted into REAL CASH (spendable money).

In other words, it is 💯 real!

There are so many people who would swear an oath that no matter how dip the dip goes, they would never panic-sell their coins. But, when faced with the reality of the BEAR, "panic-selling becomes an indispensable factor to ascertain the safety of their assets."

Just as you rightly pointed out, sometimes it may work out to their favour and other times they will be REKT.

For instance, someone who panic-sold his Steem at $3.1 when the Market was crumbling will be praised as a sharp guy who saw the future. On the other hand, if Steem had bounced up back from $0.9 to $4 and ultimately $50 after 7 days he panic-sold his coin, then he will be compared to the Man who was happy he sold off his BTC at peanut price.

On my part, I may be so slow to judge those who panic sell because of the the above instance. However, I also feel it depends on the trust for the project, coin or community. Infact, it boils down to the question:
"WHY THE HELL DID YOU BUY A COIN OR FOLLOW THE PROJECT IN THE FIRST INSTANCE?"

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You're 100% correct. While I might not panic sell, the reason I might do so is if I'm losing trust in tne project or if I need the money. Most times it's always the latter. But I haven't panic solid because these situations have not been presented into crypto endeavors.
Another thing is that my bag is extremely small so I can handle everything I've got.

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To an extent, these two cases (losing trust in tne project or if I need the money) go hand in hand.

The trust concern plays a huge role in panic selling, especially when it is a new project. Or when we hear a news that disrupts buyers and sellers relying on Fundamental Analysis. And when an individual didn't really plan on investing long term for such project. This will prompt panic selling also.

However, just like you said, it is important to coat your cloak according to your size. Invest what you can handle, come what may happen.

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Preparing for bearish market is more than been strong or trying not to sell your asset. Someone must have a perfect plan to survive in this period by all means because at the end of the day what matters is survival. Playing with crypto we must make plans with stables too

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Hahaha I was there during the 2018 bear market, my portfolio took 85% dump and I was nearly in the streets.

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The moment I saw your title I replied with "cry" 😆 but I guess that not everyone is me.

Loool cry is even good, some dips makes people suicidal. I'm telling you the truth.

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True!

I just nod my head with a sigh of pity when I remember that there are those who think crypto is a get-rich-quick scheme. Some of them borrow money or use money meant for something else to buy a coin, expecting a X100000 in two days, without understanding all there is to know about the project.

Well, they are the candidates for "suicide mission".

They are also the same people who will tell you that crypto is a scam! Because it didn't give them the X1000000 that they wanted. They think it's an advanced Ponzi Scheme.

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They are also the same people who will tell you that crypto is a scam! Because it didn't give them the X1000000 that they wanted. They think it's an advanced Ponzi Scheme.

Exactly, most of the people who are calling crypto a scam creates this oveizan mentality that crypto is a give and take scheme, it's evident that when one don't put effort into their research, they're liable to buy wrongly. Many people are beginning to curse Shiba Inu for dipping hence, giving crypto in totality a bad PR.

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True!

This is actually the tale of one of my friends who initially introduced me to crypto in 2020 via the Ponzi/smart contract Millions Money. I know at some point she began to learn/practice Forex Trading.... but I know her aim was just to cash out and hit big...

She made a huge loss in both platforms after building houses and buying cars in her mind. Right now anything crypto or forex is a scam to her.

People need to understand Trading mentality, financial mentality and crypto mentality before going into crypto.

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I understand mehn, crypto isn't for the light-hearted or weak minded.

It is for those who are ready to make friends with their own nervous system and not part with it either in joy or in sorrow).

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Exactly, those who can stay calm in times of trouble.

You just need to understand that there are no other options, hysteria will not help, eh. on the contrary, it hurts that the markets tend to worry.

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Actually, even the light-hearted ones are building solid mentality, job no dey this country.

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This is the truth mehn, when you have no options, you become strong.

Omo , I'd rather take the whole drama with crypto than what we have in this messed up country

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I understand very well, had to practically run away from my last job.

So, boy, forget such words, this is the machinations of the world that is outside the Hive).

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I swear, those Oyinbo don’t understand what dollars means to use Africans

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they don't, know. Sometimes I try to even explain better

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Ewe ee, I swear panic sell is real and the pain is unbearable sometimes. You will cry like… crypto madt gan oo

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Sometimes tears are needed in this life na

That moment when you sell a coin because of panic selling and the next 4 days it hits 300% increase 😭😭😭

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The feeling is always different and very painful, it has happened to me before but you know that’s crypto you just have to move on

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I am looking for a red rag to attract the attention of a bull, and a club to put a bear to sleep).

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Well, sometimes we are blind to these red flags.

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Facts! The feeling when you see your portfolio just jumping to double or triple is on another level thanks for sharing 😄

Yeah, it comes with this crazy feeling

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Likewise the other way around, you don’t wanna see red

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Even the richest Crypto holders doesn't like losing money lol

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It struck me when you mentioned fixed assets holding.
It's really important to hold some of those and take succour in them in the bearish times.

That we can win at all is all that matters. That's why we keep holding them coins.

Thanks for such a beautiful piece sir.

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Stable coins does a lot in this aspect. I've experienced bearish situations and I can say the panic and frustration that comes with it can be really painful

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