A Beginner’s Guide To Surviving The Crypto Winter

A Beginner's Guide To Surviving The Crypto Winter

The dreaded bear market is here. In the past few months, many best cryptocurrencies like Bitcoin, Ethereum, and BNB have lost billions in market capitalization. Experts warn that we are in for an extended bear market, often termed as crypto winter. In other words, if your token has already dumped 50%, it might fall another 50% from its current price.

While such a drastic dump can be daunting, you shouldn’t lose hope, especially if you’re a new entrant. Here’s an extensive guide that can help you survive the crypto winter.

Avoid Low Cap Tokens:

When the market melts, everything starts dumping left, right and centre. But guess which tokens dump the most? Low market cap tokens. Sorry. No prizes for guessing that right.

During a bear market, most low market cap tokens often dump like there’s no tomorrow. Unfortunately, in some cases, some of these tokens turn into absolute scams by abruptly shutting down their operations.

Therefore, while it may seem like a lucrative option to invest in low caps, you should stay far away from them. Instead, focus on large and mid-cap tokens. And then, gradually, start investing in fundamentally sound tokens such that you have heavy bags by the time there’s another bull market.

Never Panic Sell:

“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” Mark Douglas

In crypto, all hell breaks loose on the first sign of volatility. Most traders panic sell their bags at market price, and later regret their decision. However, if you carefully observe the market, it moves in the form of waves.

A majestic pump is often followed by an insane dump and vice versa. Therefore, keep aside your emotions when trading crypto and always develop an exit strategy. This approach will save you from losses and regrets.

Diversify Your Portfolio:

As the old saying goes, “Never keep all your eggs in a single basket” crypto investors are often advised never to put all their funds in a single token. Poor asset allocation is among the most common mistakes by new and experienced traders.

Experts believe investing everything in a single token is akin to gambling in a casino. Such a strategy results in massive losses during a bear market.

The key is to diversify your portfolio into multiple tokens. Ideally, it would help if you started building small bags of top 20 large and mid-caps tickets. It will help you sail through the max pain scenario, which wipes out most traders from the market.

Join Crypto Communities:

Crypto winter is brutal, and there’s blood on the streets once it gets going. In times like these, you need people who can listen and empathize with your situation.

Most crypto tokens have communities on Discord, Reddit, and Twitter. You can join them to engage in discussions about the token. Believe it or not, such communities are one of the best ways to survive the bear market. They keep you updated about the latest developments and drop news about possible future partnerships.

Understand The Market Cycles:

Imagine planning a picnic on a rainy day! Wouldn’t it completely wreck your plans and spoil your mood? However, if you plan the picnic after going through the weather forecast, you can reduce the possibility of rain playing a spoilsport.

Similarly, it would be best if you didn’t trade in the crypto market without understanding the crypto cycles. These cycles are largely divided into four phases.

Accumulation: This phase begins when the selling pressure reduces and the price stabilizes. During the accumulation phase, you should avoid taking trades and sit tight.

Bull Market: During the mark-up phase or bull market, the price starts to increase gradually. It is around this time when you may notice many new entrants in the market, which leads to a notable increase in the overall crypto market cap.

Distribution Phase: When the market is entirely euphoric, some sellers start offloading their bags, which leads to selling pressure. However, buyers are not yet ready to budge. Therefore, tokens continue to range before other dumps.

Bear MarketIt is the most dreaded phase in the crypto environment. For most traders, it can be a painstaking experience because they lose enormous wealth during this phase. During this period, the market is fueled by fear and paranoia.

DCA (Dollar Cost Averaging):

“Be fearful when others are greedy. Be greedy when others are fearful.” ~ Warren Buffett.

When everyone’s panic selling and exiting the market, start dollar cost averaging at regular intervals. For instance, if you bought a token at $1, but it dumped up to 0.50 cents, it’s time to start reducing your average buying price.

To survive the bear market, be patient and continue buying. Instead of trying to time the bottom or top, you should look for the most plausible entry points. It is the perfect time to prepare heavy bags for the next bull market.


Bear market comes with excruciating pain and slows down. Therefore, staying optimistic and keeping in touch with the market is important. Focus on the building blocks of crypto, as they will help you prepare for the next bull run. Last but definitely not least, DYOR – do your own research.


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