Investing during a bear market or when the market is uncertain can be difficult. This is because it’s hard to predict in which direction the market is heading – and how much you should invest and where. When things are uncertain in the cryptocurrency market, it makes it tricky to try and decide which projects to put your money behind.
Some projects like Bitcoin and Ethereum are established and will regain value when the bull market rallies. Other projects, however, that are still starting and developing rely on funding to continue building. As a result, many projects suffer during a bear run to the point where they cannot continue operating. This makes it difficult to know which projects are worth putting investment behind. Even experts aren’t able to predict where the market is heading and projects will thrive when the industry rallies again.
There are a few strategies you can undertake to invest in crypto during a bear market, depending on your risk appetite.