Properly Understanding Crypto Bear Markets

Jordan Mendiola
Photo by Mariia Shalabaieva on Unsplash

2022 has been a rollercoaster of volatility, both good and bad.

  • Bitcoin started the year at $37,000 and made its way up to $48,000.
  • We’ve seen Solana drop as low as $75 and takeoff back above $130.
  • Apecoin started at about $8, shot up to $27, and fell back to $16

Whether you’re holding utility tokens, altcoins, bitcoin, gaming tokens, metaverse tokens, defi, or Web3, the trends have been alike.

Bitcoin is basically the S&P 500 of the crypto world. Cryptocurrency is acting very much like the stock market and trying to find the bottom before the next bull run.

If you’ve clicked on this article, you may be seeking some reassurance or a strategy to survive these storms and come out profitable.

If your goal is big returns, you’ll want to dollar cost average.

Dollar-cost averaging is purchasing a set amount of assets several times throughout the week, month, or year.

In order to see those juicy 10x returns, you have to be in early and hold through all the ups and downs. It won’t always be sexy, but hitting it correctly on one investment is all you need.

You don’t need to be right about the entire market. You just have to be right about one.

Typically, they say don’t put all your eggs into one basket, but if it’s a solid project like Ethereum or Solana, the odds of your investment succeeding are much higher.

As time goes on, we’ll see the crypto coins that survive and won’t hear about those that don’t anymore.

If your goal is to find a hot new coin, you’ll want to sell your position and re-evaluate.

Some people have had horrible investing years in 2022, including me. But that’s why you dollar cost average or change your strategy entirely.

You can do a high risk-high reward strategy on Coinbase to convert all of your assets into one. That way, if it takes off, you’ll be rewarded nicely.

Hindsight is 20/20. There are posts saying if you had invested $1,000 into XYZ, it would have been $7,000+ today.

These bear markets are something to look forward to.

Although you may have bought at the top, you are getting a redemption shot to buy deep down low at these current levels.

The ones who load up in bear markets are the ones who profit the most on the bull runs — the only caveat is timing your sell.

Even if it’s a few dollars at a time, small purchases add up, and once your assets appreciate, you’ll feel wiser and more financially in control.

Final Thought

Bear markets are when things are down.

Bull markets are when things are up.

We are currently consolidating and testing lower lows. Depending on the next few months, we’ll see whether crypto is having a significant pullback or gearing up for new all-time highs.

Either way, it’s exciting to be in crypto versus not.

This is not financial advice, but I hope it helped you at least get your mind right during these volatile times.

If investing in crypto is something you’re venturing into, consider using my Coioinbase link here for $10 in Bitcoin.

Comments / 0

Published by

Creative entrepreneur, U.S. Army Engineer, and dedicated runner. Committed to sharing ideas that lead to more fulfillment in all areas of life. Email:

Chicago, IL

More from Jordan Mendiola

Comments / 0