Top Crypto to Invest in the Bear Market! (by Market Cap)

Introduction

The Crypto market has been going through a resetting phase since the Terra LUNA crash took place in May 2022. However, the crypto ecosystem has not been having the best of times, in terms of token values, since the beginning of the year. Following the market crash that started in May, there has been various news regarding different crypto companies who have either declared withholding their withdrawals services or announced layoffs of employees due to fast growth. All of the negative sentimental news that started to influence the crypto market sentiments joined hands with the 1% TDS that the Indian Government levied on crypto assets. The overall result turned out to be a prolonged bear phase for the crypto assets. 

The different phases of any volatile assets, that is either a bear phase or a bull phase, are not something new to the investors. While some of the top cryptos in bear market has been the smaller altcoins, some of the top crypto in bear market has been among the cryptos with the highest market caps. Any volatile asset class has alternate bear or bull markets which is majorly the result of how the market sentiments have changed. Along with the behavior of various investors or crypto whales, the valuations of some of the top crypto assets also trigger market scenarios. In the detailed article below, we will be diving into various some of the top crypto tokens available in the market (by market cap) and how to invest in a bear market. 

Also Read: Top Cryptos to Invest under $1

Top 5 Cryptos by Market Cap Today 

Data as of 20th July, 2022

How to Invest in a Bear Market

As the crypto market is currently going through a ‘crypto winter’ phase, it is essential for every investor to analyze the market and its past behavior. However, rather than reacting based on FOMO during such market cycles investors should strategize and optimize their methods with thorough research and make the most out of such opportunities. Below are some of the methods that will help you in investing on some of crypto during the bear market.

Note: It is imperative that investors do their research before investing in crypto assets.

Rupee Cost Averaging: You might have come across Rupee Cost Averaging while dealing with Mutual Funds. The method is very much applicable while you are strategizing your crypto investments for the best crypto, during a bear market. Essentially, Rupee Cost Averaging is when you are investing a fixed amount of funds, at regular intervals, on your choice of top crypto in bear market. This ensures that the amount invested allocates more units while the markets are down and lesser units when the markets are bullish. Usually SIPs work based on this method.

Diversification: While every investor has a different set cryptos for their portfolio, the best way to invest in some of the best crypto in bear market is by diversifying your portfolio. Set aside your funds and divide it among all the tokens. The process of diversifying the portfolio among various crypto assets depends solely on the risk appetite of the investor. The goals and conditions of every investor are different, with a proper asset allocation strategy investors can easily avoid potential negative impacts on their assets

Invest the amount you are comfortable with: It is important to have a proper idea about your risk appetite is important before you start investing in any asset class. This becomes all the more important with volatile asset classes like crypto. Investing is good to create long-term wealth, however, it is important to invest wisely. No one wants to become the biggest crypto investor while sleeping on the streets. Invest only that much that you can afford to lose. One should always remember that bear markets and minor corrections can be destructive. 

Additional Read: Ways to Survive the Crypto Bear Market

How to Start Crypto SIPs in Bitcoin & Other Cryptos

To start investing in Crypto SIPs, the first step is to find a crypto investment app that facilitates the demand. CoinDCX has recently launched a feature called crypto CIP. Crypto Investment Plan, also known as CIP, helps you build your crypto investment portfolio by investing a fixed amount every week. Crypto tokens available as of May 2022 are, Bitcoin, Cardano, Ethereum, Polkadot, Loopring, Solana, and Ripple. To srat with CIP, here are the easy 6 step process:

Step 1: Open your CoinDCX App & Select “Buy with CIP” on your home screen

Step 2:  Select the coin you want to start your CIP for

Step 3: Click on CIP Amount 

Step 4: Select the amount you want to invest on a weekly basis

Step 5: Click on “Start CIP”

Step 6: That’s it! Your Crypto Investment Plan(CIP) will be active!

Read more: Crypto Investment Plan

Crypto Bear Market Mistakes To Avoid

There are several ways that investors can explore and choose to survive the crypto bear markets and potentially earn some profits. Irrespective of the bear period turning into a lengthy crypto winter, investors can follow these strategies to better manage their overall risk and portfolio. Some of the mistakes that investors can avoid while the crypto space is going through a bear market phase are as mentioned below.

Trade with Greater Discipline: Many traders today are short term traders. That means they sell as soon as their list of best crypto goes a little higher on value. While short term trading is not a bad way of trading, however, it is important not to aim for larger profit amounts before selling the assets. Taking modest profits periodically is the better way as waiting for larger profits might not be the best way during a bear run.

Learn How to Short Crypto: 

• Shorting crypto basically means selling higher valued crypto assets to buy them back when the values are low. 
• The goal of shorting crypto assets is to buy them when the price is expected to fall.
• One of the major drawbacks of this method is that there is no definitive way of deciding when one of your best crypto in bear market will have a dip.
• Correct timing and in-depth analysis is imperative for shorting cryptos.

Diversify Your Crypto Portfolio:

• Financial advisers are always suggesting diversification to avoid incurring huge losses.
• The mistake that investors make in diversifying their portfolio is investing in newer projects without thorough research.
• After a definite and in-depth research investors can choose which are the best crypto investments for their portfolio.

Keep Emotions in Check: However the market sentiments be, in the end, it comes down to how involved you are with the projects. If the research that you conduct before investing in a certain asset, the market behavior is not the facto that should be determining the buying or selling of the assets.

Consider Low-Risk Strategies Like Staking: When in a bear phase, taking up the method of Staking as an investment strategy is a smart move. Staking promotes investing for the long term along with relief from obsessing over current market behavior. 

Also Read: Top Crypto Bear Market Indicators

Conclusion

Despite the bear run in the crypto market, the crypto space is advancing at a great pace. With the Web3 evolution, the crypto projects are joining hands with various partners and coming up with newer inventions!  Owing to factors like volatility and market sentiments, these crypto winter periods and bear markets will still be occurring in the future. The top ways to survive this or any other crypto bear market are patience, positivity, and a well-researched survival strategy that incorporates the tips discussed above.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].

The above information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational & educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, virtual digital assets/ crypto products or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as a legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.