When cryptocurrencies experience double-digit declines, staying calm is far from easy. But this is precisely the critical moment that separates successful investors from those who are eliminated. Although a bear market is brutal, it also offers unique opportunities for prepared traders. This article will explore 7 practical actions to take during a crypto bear market to help you protect your capital and accumulate wealth.
Understanding the Nature of a Crypto Bear Market
Every crypto investor has their own understanding of a bear market. In traditional finance, a bear market is defined as a decline of over 20% from a recent high. However, in the crypto world, this standard is far from sufficient — we have seen extreme cases where prices drop by 90% in history.
A more accurate definition is: a bear market is a prolonged period during which market confidence remains low, prices continue to decline, and supply exceeds demand. Economic activity noticeably slows down, and the market falls into a pessimistic cycle.
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