MrSotko CryptoCurrency begins his video by defining a bull market and a bear market. MrSotko says, “A bear is essentially a slash as a bear slashes downward and it’s a seller dominant market meaning basically the price is going down. A bull market is considered to be a bull because it thrusts its horns upward and that is the good market that everybody loves because it is going up and everybody’s buying.”
MrSotko points out that most of his experience is in the stock market and while the cryptocurrency market is different from the stock market the principles of trading in a bear market generally remain the same.
MrSotko gives three options for crypto traders:
Sit and Hold: It’s hard to know when the market will recover so if you believe that the market will go up, in the long run, you should just continue to hold onto the investments that you already have and wait for the market to return to its bullish state. If the market does expand you will eventually earn back the money you lost and make investment gains.
Sell: On the flip side, if you think that the market is in a downturn and will not recover or take an extended period of time to recover you may want to sell your investments at a loss and hold onto it while the market continues to suffer. Your investment will have lost money but it will not continue to lose money if you pull it out and the market keeps spiraling down. This is the appropriate strategy if you want to play it safe or think the market is going to experience a major correction.
Put money into Tether: Tether issues tokens that are consistent with the value of fiat currencies from around the world (US dollar, Euro, and Yen). This makes the risk of investing in Tether only variable to other token prices.You can almost think of it as shorting the cryptomarket in a way. You won’t gain any money by normal fiat currency standards but you will increase your capacity to buy more cryptocurrency.
It’s important to remember to not invest any money you don’t feel comfortable losing. Only invest the money you feel you can lose and remember to appropriate research in crypto companies before investing in them.