Crypto veterans extend a helping hand to bear market newbies
As the bears take over and the markets slow down, Twitter user DeFi Edge asked crypto veterans, who experienced the bear market of 2018, what advice they would give to traders who are encountering it for the first time.
In a reply to the thread, Guy Swann put buying Bitcoin (BTC) at the top of his advice list to bear market rookies. Additionally, Swann also told traders to hold their own keys, ignore the market price and stack regularly.
• Buy #Bitcoin
• Hold your own keys
• Ignore the market price
• Stop gambling on garbage
• Get rid of leverage
• Stack regularly
• Prepare for a financial collapse
• Take care of your family
• Use any extra time to learn the new Bitcoin tools & services
— Guy Swann ⚡️ (@TheGuySwann) May 19, 2022
Apart from simply a downtrend in crypto prices, a crypto bear market is characterized by several other factors including the lack of investor confidence in the market, a sustained period of decreasing prices, lower highs when good news comes and lower lows when there’s bad news. Amid these circumstances, Erik Vorhees advised traders to “do nothing.”
According to Vorhees, normal traders don’t need to do anything as their “seeds are planted” and the “wheat will grow in the spring.” On the other hand, Voorhees noted that crypto businesses must cut back on spending and make sure that they have “24 months of runway.”
Nic Carter also weighed in and shared his advice with crypto traders. According to Carter, the crypto community needs to put its energy into building things that people want. He also warned against assuming that everything will make a comeback and said that “some things die permanently.”
Related: Contrarian Bitcoin investors identify buy zones even as extreme fear grips the market
A bear market also often shows many signs like lower trading volume, which means that people are holding due to uncertainty, negative comments from crypto haters and backwardation, an event where an asset’s price in futures markets becomes much less than the normal market price. The big question is when will this end?
In an exclusive Cointelegraph interview, macro investor Raoul Pal shared that the bear market may end if the Federal Reserve halts interest rate hikes. The investor predicts that this may happen in the coming months.