This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. The terms “bear” and “bull” are widely used in an attempt to describe and simplify our highly complex and volatile market. As you know, I am generally opposed to using these terms unless a specific time frame is attached. An investor can be both bearish and bullish depending on the time frame. My position is that Bitcoin has effectively been in a macro bull market since inception, but entered a local bear market with the break below 53K.Price action is far more nuanced than 2 buckets defined by limited animal terminology and there still lacks an agreed-upon definition for these words.Regardless, I recently spoke to Fortune.com about my strategies on “How To Survive A Bear Market.” They also spoke with my friend John Wu, President of Ava Labs ($AVAX). Our advice was simple and can be broken down into 4 ideas: Don’t try to short the marketHave a long-term perspectiveConsider stakingUse dollar-cost averaging to your advantageConsidering the timing of the article and the importance of the subject at hand, I figured expanding on these ideas here for you would be helpful. After all, the goal is to mitigate the damage as much as possible and set ourselves up for future success.Remember, rule number 1 of trading is to preserve and protect your capital.The first piece of advice is “don’t try to short the market.” It is my belief that the time to short is likely over and would be an emotional decision based on the idea that the market is ‘going to zero.' The upside of buying now is exponential, the upside of shorting is extremely limited. If you did manage to open a short around $60,000 that’s incredible, but those traders are few and far between and likely exited their positions long ago. Opening a short now and hoping Bitcoin hits $30,000 (or even a bit lower) is not worth the risk for the limited reward unless you are a talented trader. Adding on leverage is only more dangerous. Investors are far better off accumulating tokens they believe in at a discount with a long time horizon. This leads me to my next piece of advice.Use dollar-cost averaging to your advantage if you want to accumulate larger positions and average into your assets at better overall prices. Dollar-cost averaging is agnostic to bull and bear markets. It's a "forget about it" strategy that allows you to buy at every price, taking advantage of both dips and rips. The bear market is the best time to do it, but it should be actively happening regardless of price.Our third piece of advice was to consider staking your long-term holdings. By no means should you dive headfirst into a yield farming pool, but maybe it’s a good time to look at interest rates offered by popular platforms. Staking is a great strategy for earning passive income and yield, akin to a high-interest savings account, which clearly does not exist anymore The caveat is that there is counter party risk because you are counting on the platform or protocol to survive high volatility. Do your research and decide where your coins are safest and only expose what you are willing to put at risk.The last piece of advice John and I discussed was to invest with a long-term perspective. This market is no stranger to serious swings. A 50%+ drawdown seems significant in most markets, but seasoned crypto investors call it "Tuesday." Bitcoin has seen a number of corrections of 50%+ and has always recovered and risen to new highs. People have a short memory and seem to forget that Bitcoin dropped from $60,000 to $30,000 in 10 days last May. I expect a course correction and new highs down the road.As hard as it may be, try to look at the bear market as an opportunity. Approach the market with optimism - optimists tend to perform better over time and sustain a healthier mental state. After all, markets "only go up" if you zoom out.If you want to read the full interview you can click on this link HERE for the article.To my free members (I love you!) - paid members receive emails like this one 5 times a week - Monday through Friday. Every Wednesday I chart any request sent by my paid members, often over 30 charts. It’s a ridiculous amount of work, but I do my best to add real value to anyone who subscribes. If you would like to join the paid side, you can do so for $15 a month here.In This Issue:How To Survive A Bear MarketBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsChart RequestsIntoTheBlockThe Fed Put 101ARK Is Mega Bullish On EthereumTesla Is Still HODLingBiconomyThe Wolf Of All Streets Podcast Ft. Greg IsenbergMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #423 - How To Survive A Bear Market
The Wolf Den #423 - How To Survive A Bear…
The Wolf Den #423 - How To Survive A Bear Market
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. The terms “bear” and “bull” are widely used in an attempt to describe and simplify our highly complex and volatile market. As you know, I am generally opposed to using these terms unless a specific time frame is attached. An investor can be both bearish and bullish depending on the time frame. My position is that Bitcoin has effectively been in a macro bull market since inception, but entered a local bear market with the break below 53K.Price action is far more nuanced than 2 buckets defined by limited animal terminology and there still lacks an agreed-upon definition for these words.Regardless, I recently spoke to Fortune.com about my strategies on “How To Survive A Bear Market.” They also spoke with my friend John Wu, President of Ava Labs ($AVAX). Our advice was simple and can be broken down into 4 ideas: Don’t try to short the marketHave a long-term perspectiveConsider stakingUse dollar-cost averaging to your advantageConsidering the timing of the article and the importance of the subject at hand, I figured expanding on these ideas here for you would be helpful. After all, the goal is to mitigate the damage as much as possible and set ourselves up for future success.Remember, rule number 1 of trading is to preserve and protect your capital.The first piece of advice is “don’t try to short the market.” It is my belief that the time to short is likely over and would be an emotional decision based on the idea that the market is ‘going to zero.' The upside of buying now is exponential, the upside of shorting is extremely limited. If you did manage to open a short around $60,000 that’s incredible, but those traders are few and far between and likely exited their positions long ago. Opening a short now and hoping Bitcoin hits $30,000 (or even a bit lower) is not worth the risk for the limited reward unless you are a talented trader. Adding on leverage is only more dangerous. Investors are far better off accumulating tokens they believe in at a discount with a long time horizon. This leads me to my next piece of advice.Use dollar-cost averaging to your advantage if you want to accumulate larger positions and average into your assets at better overall prices. Dollar-cost averaging is agnostic to bull and bear markets. It's a "forget about it" strategy that allows you to buy at every price, taking advantage of both dips and rips. The bear market is the best time to do it, but it should be actively happening regardless of price.Our third piece of advice was to consider staking your long-term holdings. By no means should you dive headfirst into a yield farming pool, but maybe it’s a good time to look at interest rates offered by popular platforms. Staking is a great strategy for earning passive income and yield, akin to a high-interest savings account, which clearly does not exist anymore The caveat is that there is counter party risk because you are counting on the platform or protocol to survive high volatility. Do your research and decide where your coins are safest and only expose what you are willing to put at risk.The last piece of advice John and I discussed was to invest with a long-term perspective. This market is no stranger to serious swings. A 50%+ drawdown seems significant in most markets, but seasoned crypto investors call it "Tuesday." Bitcoin has seen a number of corrections of 50%+ and has always recovered and risen to new highs. People have a short memory and seem to forget that Bitcoin dropped from $60,000 to $30,000 in 10 days last May. I expect a course correction and new highs down the road.As hard as it may be, try to look at the bear market as an opportunity. Approach the market with optimism - optimists tend to perform better over time and sustain a healthier mental state. After all, markets "only go up" if you zoom out.If you want to read the full interview you can click on this link HERE for the article.To my free members (I love you!) - paid members receive emails like this one 5 times a week - Monday through Friday. Every Wednesday I chart any request sent by my paid members, often over 30 charts. It’s a ridiculous amount of work, but I do my best to add real value to anyone who subscribes. If you would like to join the paid side, you can do so for $15 a month here.In This Issue:How To Survive A Bear MarketBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsChart RequestsIntoTheBlockThe Fed Put 101ARK Is Mega Bullish On EthereumTesla Is Still HODLingBiconomyThe Wolf Of All Streets Podcast Ft. Greg IsenbergMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO