How to survive an altcoin bear market [strategies from veterans]

[kyman1]

We saw when the market went bear for a few weeks/months, altcoins, AI coins, etc., went from an $800M market cap to $100M very easily.
What are some strategies you use, especially if you are a successful veteran? What type of diversification do you use?

[markm]

On average your example, 800 to 100, amounts to value going down to 1/8th what it was.

However if you had had buy offers in place all the way down, so that in order to lower the price coins would have to be sold to your buy offers all the way down, how many times as many of the coin would you end up with by the time it had been sold to you at a whole column of prices going all that way down (and hopefully more, in case prices were driven even lower yet, selling you even more even cheaper)?

Maybe if you deploy your column of buy offers carefully it would be possible to end up with 8 times as many of the coin, so that even though it is worth only 1/8th per coin what it had been you have 8 times as many so "it is a wash" so to speak.

Might it even be possible to achieve even more than just 8 times as many of the thing by the time it is driven down to 1/8th the price, resulting in a net profit?

Math worth contemplating...


-MarkM-

[passwordnow]

We saw when the market went bear for a few weeks/months, altcoins, AI coins, etc., went from an $800M market cap to $100M very easily.
What are some strategies you use, especially if you are a successful veteran? What type of diversification do you use?

Don't diversify a lot, it's best for you to have some focused cryptos that you're going to hold and invest with. People think that the more choice of your diversification is going to be good, not at all times. Too much of it can cause you a lot of problems in the long run and will lose the balance of your portfolio. Even holding BTC and ETH will suffice the trick but others choose to get into many, as many as they can.



Check this chart on how much and how many holdings each of us in estimation for Bitcoin. It's no doubt that it has saved a lot of us during bear markets and made us win on the bull run. And everyone hasn't got their BTCs yet. I hope it becomes a motivation for someone who asks for diversification and doesn't have BTC yet on their ports.

[Dr.Bitcoin_Strange]

One best strategy you can have as an altcoin investor is to know how to predict the market, pay close attention to the market and how to make informed research in picking good altcoin and also being extremely lucky, if you don't know how to scale through the market, there's a high chance that you will get burned. Now that the market is trending on the bullish direction, some investors that are experts have already marked their selling/exit plan and once they see a decline in volume and price, they start taking profit and hold their fiat until they see a signal to go in again, that's when they start to buy again.

[luckyspirit]

We saw when the market went bear for a few weeks/months, altcoins, AI coins, etc., went from an $800M market cap to $100M very easily.
What are some strategies you use, especially if you are a successful veteran? What type of diversification do you use?

Don't diversify a lot, it's best for you to have some focused cryptos that you're going to hold and invest with. People think that the more choice of your diversification is going to be good, not at all times. Too much of it can cause you a lot of problems in the long run and will lose the balance of your portfolio. Even holding BTC and ETH will suffice the trick but others choose to get into many, as many as they can.

Sadly people don't understand strategies and have limited thinking. They hear the old don't put all your eggs in a single basket thing and instantly think that it is the best strategy ever that could never go wrong. Then the person proceeds to diversify from 100% BTC and ETH, into 10% BTC and ETH, 90% random shitcoins which all end up doing a a -99%.  

The fact of the matter is that there are way too many coins and tokens out there now. This means that the chance that someone will lose money has increased massively. The more you diversify the higher the chance that everything you have will go bust. Stop chasing new narratives, stop reinventing the wheel. BTC primary, ETH small secondary, and small amounts to capital to gamble in new opportunities.

One best strategy you can have as an altcoin investor is to know how to predict the market, pay close attention to the market and how to make informed research in picking good altcoin and also being extremely lucky, if you don't know how to scale through the market, there's a high chance that you will get burned. Now that the market is trending on the bullish direction, some investors that are experts have already marked their selling/exit plan and once they see a decline in volume and price, they start taking profit and hold their fiat until they see a signal to go in again, that's when they start to buy again.

Nobody knows how to predict the market, so that strategy has failed because it does not exist.

[Webetcoins]

I have been around for 10 years now, even more. The way I avoid it is by not getting some silly shitcoin.

People go buy the 68th ranked shitcoin that should be gone, and say "if this goes up just a bit more, it could be so huge" but then do not realize "why would it go up?". That's the most important question and they ignore that.

Sure, there is a possibility of it going up, but only if the project gives a reason for it, otherwise we won't buy, and it has proven that we do not like it by being not that highly ranked. Then they put all their money into it, and the project scam exists or falls off, and then they wonder how they could have avoided it.

I have bought 20+ different coins, and in all of them, I made money, because I buy stuff that are highly ranked.

[o48o]

We saw when the market went bear for a few weeks/months, altcoins, AI coins, etc., went from an $800M market cap to $100M very easily.
What are some strategies you use, especially if you are a successful veteran? What type of diversification do you use?

Don't fall in love with a coin, has probably been best advice i have heard. That means that if you have strong emotional bond with your bag when it's going up, you don't see what's happening, because you stay convinced that it's the next ETH or something.

That means when bad news come, you will brush it off as a fud and you don't see clearly what's happening. You are delusional and in denial to the -99% drop. When you don't have strong bond with your bags, they are easy to sell in profit without looking bag. And when you sell, sell slowly and never sell everything, because there's a tiniest change that bag will moon in the future, and you might want to have bag that you forgot even existed. That once happened to me with one coin that's already dead by now.

[cabron]

Just sell them before their price plunged to zero. There is no better way to do it than dump them as bear market comes. Take it from someone who have tried holding them because of the thought that it can't dive from $50 to less than $1. Unfortunately, it does happen regardless of which token that is, as long as its an altcoin, you save yourself and survive the bear market.

[MArsland]

We saw when the market went bear for a few weeks/months, altcoins, AI coins, etc., went from an $800M market cap to $100M very easily.
What are some strategies you use, especially if you are a successful veteran? What type of diversification do you use?

First of all, to disclaim that I don't claim to be a successful veteran, nor am I an altcoin investor or currently holding any. This is based solely on experience and observations of the altcoin market. When investing in altcoins, never go all-in for long term holdings. Deep bear markets often lead to the bankruptcy of altcoin projects, and they are quick to exit liquidity at any time. So far, there's no effective way to survive a bearish altcoin market other than capitalizing on momentum while the market is still bullish.
Even if you have done TP and the altcoin price continues to rise, remember not to enter again. Disciplined profit management is always better than taking risks where you cannot measure the potential loss.

[passwordnow]

We saw when the market went bear for a few weeks/months, altcoins, AI coins, etc., went from an $800M market cap to $100M very easily.
What are some strategies you use, especially if you are a successful veteran? What type of diversification do you use?

Don't diversify a lot, it's best for you to have some focused cryptos that you're going to hold and invest with. People think that the more choice of your diversification is going to be good, not at all times. Too much of it can cause you a lot of problems in the long run and will lose the balance of your portfolio. Even holding BTC and ETH will suffice the trick but others choose to get into many, as many as they can.

Sadly people don't understand strategies and have limited thinking. They hear the old don't put all your eggs in a single basket thing and instantly think that it is the best strategy ever that could never go wrong. Then the person proceeds to diversify from 100% BTC and ETH, into 10% BTC and ETH, 90% random shitcoins which all end up doing a a -99%.  

The fact of the matter is that there are way too many coins and tokens out there now. This means that the chance that someone will lose money has increased massively. The more you diversify the higher the chance that everything you have will go bust. Stop chasing new narratives, stop reinventing the wheel. BTC primary, ETH small secondary, and small amounts to capital to gamble in new opportunities.

It's still a good strategy after all. It has never gone wrong to put most that they have to BTC and if they want to really diversify then it's holding ETH that should come next. But little did they know, if they are going to diversify even more, the balance wil be gone on that portfolio. They're making a huge mistake and you're right about that. There are more altcoins now and the choice is becoming harder for them because they're too confused of what altcoins that they have to diversify with. But we say, they don't have to diversify a lot and go with the traditional holding of these known cryptos in the market and so that they don't have to think a lot about it.

[luckyspirit]

Don't fall in love with a coin, has probably been best advice i have heard. That means that if you have strong emotional bond with your bag when it's going up, you don't see what's happening, because you stay convinced that it's the next ETH or something.

It is when a person starts confusing their luck for skill. The coin that they invested in pumped a lot, and to them this must mean that it is going to be a big thing. Of course the things don't work that way and most of the time it is just pure luck and timing, most of these coins die later on.

And when you sell, sell slowly and never sell everything, because there's a tiniest change that bag will moon in the future, and you might want to have bag that you forgot even existed. That once happened to me with one coin that's already dead by now.

This is rare and good advice. I would say keeping a healthy 10% of whatever shitcoin you had is good enough. If it goes to zero, this loss is not important. However, if it recovers and becomes relevant again this 10% will be worth more than the other 90% that you sold before.

It's still a good strategy after all. It has never gone wrong to put most that they have to BTC and if they want to really diversify then it's holding ETH that should come next. But little did they know, if they are going to diversify even more, the balance wil be gone on that portfolio. They're making a huge mistake and you're right about that. There are more altcoins now and the choice is becoming harder for them because they're too confused of what altcoins that they have to diversify with. But we say, they don't have to diversify a lot and go with the traditional holding of these known cryptos in the market and so that they don't have to think a lot about it.

Diversification is a good strategy when used correctly, but most people apply it wrong and that is why the results are terrible. Bitcoin is the diversification from most things you may have already. If you can find one or two more great alternatives then sure diversify reasonably. But if you don't have great alternatives, don't force diversification thinking that you are a smart ass. This is what leads to losses.

[pawanjain]

I have been here for nearly a decade but to be honest, I have always lost money trading altcoins.
On the other hand, I have made decent profits by just holding on to BTC and ETH for long term.
So from my experience, holding any other altcoin than ETH is risky.
Saving capital should be the primary goal of any investor that can only happen if we stay invested in BTC and ETH.
We can surely try our luck on other altcoins but that should be only a small amount from our portfolio.

[DeathAngel]

Don’t panic sell. Only invest what you can afford to lose. Hold strong projects with real use cases not hype. Keep some cash ready for dips. Avoid chasing pumps. Stay updated on news & trends. Use the bear market to research & learn more. Remember markets move in cycles & patience is key.

[passwordnow]

It's still a good strategy after all. It has never gone wrong to put most that they have to BTC and if they want to really diversify then it's holding ETH that should come next. But little did they know, if they are going to diversify even more, the balance wil be gone on that portfolio. They're making a huge mistake and you're right about that. There are more altcoins now and the choice is becoming harder for them because they're too confused of what altcoins that they have to diversify with. But we say, they don't have to diversify a lot and go with the traditional holding of these known cryptos in the market and so that they don't have to think a lot about it.

Diversification is a good strategy when used correctly, but most people apply it wrong and that is why the results are terrible. Bitcoin is the diversification from most things you may have already. If you can find one or two more great alternatives then sure diversify reasonably. But if you don't have great alternatives, don't force diversification thinking that you are a smart ass. This is what leads to losses.

That is right that they are doing it wrongly. Because what diversification means to them is to invest in as much as many altcoins that they can. Even with no volume, they're going to buy and hold that because that's what it means for them. And I agree with you that there is no need to forcing ourselves in diversification because if it's working for you to invest only with bitcoin, that's good. If you're only for ETH that's good as well, so whichever comes first and what is working for us, we don't have to force ourselves to be just like others if some other strategies or way of diversifying works for them.

[aioc]

We saw when the market went bear for a few weeks/months, altcoins, AI coins, etc., went from an $800M market cap to $100M very easily.
What are some strategies you use, especially if you are a successful veteran? What type of diversification do you use?

You should anticipate the market; this is where your careful research comes into play when the market is shifting from bull to bear.
Your analysis and research will be tested during a bear market, so my strategy is to compile the best guidelines for identifying the most resilient coin or token. This way, when the bear market arrives, as expected, you’ll be well-prepared.

[danherbias07]

Don’t panic sell. Only invest what you can afford to lose. Hold strong projects with real use cases not hype. Keep some cash ready for dips. Avoid chasing pumps. Stay updated on news & trends. Use the bear market to research & learn more. Remember markets move in cycles & patience is key.

Yes, I will have to agree on this, and I suggest the same OP.

Dumps are part of the cycle of the market, especially on Altcoins, which are mostly dumped to buy another coin or a stablecoin. There are traders who will move their assets from time to time to keep them healthy, and you should get used to it.

Now, you should identify what you are if you are worrying about this kind of fluctuation. Are you a trader? Because you will have to worry about not selling early if a sudden dump happens. Are you a long-term investor? There's nothing to worry about, and you should trust the altcoin that you picked that it will bounce back at some point.

[markm]

Think of dumps as lightning super-dips, lightning fast so you want to have your buy offers already in place when they happen else you'll miss them.

Buying the dips a lot of folk like, but by the time they react they can easily miss them.

You want the buy-side strong anyway for many reasons, not least because aggregation sites like CoinMarketCap and CoinGecko are going to base what they tell folks your coin or token is worth on its buy-side order-book, so being already in place with your buy offers before dips or dumps happen has additional virtues.

Presumably the main distinction between a dip and a dump in many people's usage of the two words is something to do with intensity, volume or depth, basically just how many coins or tokens are your already in place buy offers going to snap up cheap, and just how cheap are they going to get them?


-MarkM-

[Dunamisx]

The best solution i this is to first invest in a coin that has prospect, while on the other end, we need to have the required patient to hold till the end of the bear market and we begin with the bullrun, so that this will come in place for as we already have expected, the bear market could come handy with lots of fear, because the market are falling and continue to fall even the more, but what gives the confidence is in what we have invested and how we are more convinced about the possibility of the coin rising, we can take ethereum now for example, as it start rising after a long bear.

[o48o]

Don't fall in love with a coin, has probably been best advice i have heard. That means that if you have strong emotional bond with your bag when it's going up, you don't see what's happening, because you stay convinced that it's the next ETH or something.

It is when a person starts confusing their luck for skill. The coin that they invested in pumped a lot, and to them this must mean that it is going to be a big thing. Of course the things don't work that way and most of the time it is just pure luck and timing, most of these coins die later on.

I doubt that anything here is skill. At least i haven't yet seen anyone skillful in here, whose profits couldn't be explained by dumb luck. Sure, sometimes you catch coins with good fundamentals in right time, but just finding those and timing them right is a skill. And even with good fundamentals you can fail. And by definition any TA is based on probability, and even if that probability is high, usually those mean profits that are low in percentages, which can be taken away with one fast crash.

It's pretty much impossible to prove that you are making money because of skill, because if you try to recreate some investment that brought you 100x or more, i will guarantee that 99+% of those attempts will fail.

[TastyChillySauce00]

There is no strategy.

Just see if the altcoin is good enough, have high trading volume and come from reliable team then just throw money at it.
But i will be selective, usually only coin that have strong community gonna go up when bullrun came, the rest just stuck in their all time low.