The bear run was quite unexpected for some of us and an even bigger number of users have never faced one before because of how recently they entered the crypto market. Here are the opinions, every rookie and maybe even some professionals would love to be aware of before the rates started constantly going down. ☹️
Staking shall be controlled
Free cheese only in a mousetrap. Those 10% APY might not be so important, when all of the assets sitting on your wallet start simultaneously doing elegant inverted X’s right into the void. 📉
Most staking initiatives are usually slightly (or not so slightly) adjusted to the terms of founders getting their own tokens unlocked. While your tokens are locked in, evil-minded developers sell their assets for a good price due to the artificial demand you created with your locked in tokens. Once the tokens are unlocked from staking, they would most likely have little to no liquidity. 😡
In one of their blog-posts Cobie described staking as “idk we give you more coins as a reward if you don’t sell your current coins lol.” 😵💫
However, don’t mistake profit focused staking with the actual PoS functioning variant - industry needs true PoS and its participants for further development. 🙌
Start worrying about your altcoins growing in price and develop a habit of selling more
ETH/BTC or fiat just can’t collapse entirely, so every time you see some asset in your portfolio increase rates, forget about that FOMO and secure your profit by selling your alts for one of those three. 🪙
During a bull run most people would look at their balance increasing excitedly, while completely forgetting a bear run could be right around the corner. Don’t get hypnotised and keep selling like there is no tomorrow. 😆
Twitter might become your best friend or your worst enemy
Even though the advice to not trust most Twitter “crypto-experts” might seem quite obvious, we still get cases with thousands of people being used as puppets for getting exit liquidity. 😤
To be fair, some crypto bros are actually your bros and have earned enough to provide the audience with a reasoned opinion, but those are minor. ❌
Find what suits you best
Are you a trader? Fundamental researcher? Jpeg flipper on Solana? A community manager on a salary in a project?
Develop in the field of competence where you have the highest results and don’t spray yourself on multiple things. 🤝
The only three topics that are obligatory to know for every market participant are liquidity management, risk management and diversification.
We hope you found those tips useful and will keep them in mind, when the next bear run comes.
Stay tuned 📻
What is APY?
The annual percentage yield (APY) is the rate of returning profit earned on an investment in a year.