The entire crypto world has been struggling with this bear market. Many people have decided to take a step back from staring at their screens. But is that really the best course of action?
DCAing the Bear Market
We all have been in the spot where we look back on a chart and think, if only I had bought back when the price is low. For most of us at Palisade Crypto, we feel the bear market is the a good time to start that dollar cost averaging into the projects. Projects that you believe will survive and actually provide value. A few extra dollars into a coin or token that is down 75-90% could turn into some large returns if that project returns to its normal trading price.
Lowering your Cost Basis
Lowering your cost basis on any project that you’re in always feels good if you believe in the project and are excited about its future. Sometimes we get too excited about a project and just want to be in it. Hopefully you don’t feel this way when a project hits all time highs but FOMO can happen to the best of us. In the past few months I’ve been able to double my position in a few projects with spending less that 20% of what I initially put in the first round.
DeFi in a Crypto Bear Market
Sadly, DeFi summer has long passed. And with that the majority of the yields that I had grown accustomed to. The risk of providing liquidity has many scared to continue in DeFi. My personal DeFi investments had toned back, I try to only provide liquidity on coins/tokens that I think would move together, or are pegged together. WMATIC/stMATIC has been one of my major pools this crypto winter. With both tokens being almost exactly the same price yet still managing to get 10% APR.
Get Into Crypto Projects
Crypto Twitter often spams the BUIDL term during crypto winter. As many people who tweet that out you would think it would be hard to find a project looking for people. When I joined a DAO, it has been super easy to jump in and get involved. DAOs are a great place to start. Many DAOs post tasks on Dework and you can get paid to help them out. Spending a few hours of your time to help a project with your skillset can be extremely rewarding, both financially and personally. I have been helping out over at PhononDAO to get their testnet going. Along with assisting with the day to day operations. In the past few months I’ve learned an incredible amount from that community regarding cryptography. I’ve been shown tools for crypto that have become , and have made some awesome connections to people in the space.
Keep a Lookout for Changes
Last thing to do in a crypto bear market is to be watching it. I know that we all need a break from the market, but you shouldn’t ignore your investments. Being up to date with what is going on is important in this asset class. The Palisade Community is still going strong with daily users in its voice channels in Discord. We have posts with what is going on in all of the markets. Come join us and be apart of the conversation to stay up to date.