Many investors in Kenya tend to pull out entirely from the market during a bear market in cryptocurrency investment. This is because they think that, during a bear market, there is no reason to hold onto their investments.
However, such an approach is misguided. While the value of an investment is unlikely to increase during periods of low volatility in the markets, certain actions can be taken to maximize gains going forward. Here are tips for new entrants into the crypto market for Kenyans:
Buy the Dip
Investing in a bear market can be nerve-wracking, especially when new to crypto. But just like the stock market, buying the dip is one of the best ways to get started in crypto.
A bear market is a time when most cryptocurrencies are experiencing low prices, and their prices are expected to fall further. Buying the dip means you buy cryptocurrency when it’s experiencing a price drop to sell it later at a higher price.
If you’re new to crypto, buying the dip can be a great way to get started because you don’t have much money invested in crypto yet — and it will help you build up your portfolio.
Use Indicators to Find the Best Entry Point
A bear market is the worst time to buy and hope for the best. Instead, use indicators to find a good entry point so you can be confident that your investment will pay off in the long run. You can use different indicators to help you determine whether it’s time to invest.
One of these is support and resistance levels, which show where the price could bounce back up after a dip in value.
Another indicator is MACD (moving average convergence divergence), which shows how much momentum a stock has and predicts whether it will increase or decrease its value over time.
Diversify Your Investments
One of the best things you can do in a bear market is to diversify your investments. This means spreading your cryptocurrency holdings across different digital assets or coins. For example, if you have $10,000 in Bitcoin and Ethereum, add another $2,000 worth of Litecoin, Monero, or Swerri.
Why? Because if one currency tanks while others rise, your portfolio will be protected from losing too much value at once.
You should also spread out your investments across different platforms. The more places you put money into, the safer it will be — even if some of those platforms are risky or unstable.
Don’t Freak Out
Bear markets are a normal part of the cryptocurrency cycle, and bull markets often follow them. If you’ve invested in crypto, it’s important to be prepared for bear markets. These periods can be scary, but it’s important to keep perspective and not panic. When the market goes down, don’t make rash decisions or sell everything — you could miss out on a great opportunity.
Some of the best cryptocurrency investments have come from people who bought at low points during bear markets and held onto their coins until they recovered.
Remember: there are no guarantees! But if you can weather the storm and stay positive, there’s a good chance you’ll be able to ride out these turbulent times and come out ahead in the long run.
Final Thoughts
In summary, if you have the right attitude and a few useful tips on this subject, there are many things that individuals can do to ensure they don’t go through the bear market in Kenya with empty pockets. Grow your investment today with Swerri today!
