A Bear Market is known as scary and uncertain; it causes investors to run away with financial losses. Yet in this threatening concept, there are hidden opportunities for investors to make a profit.
A Bear Market is a concept in the investment world. It refers to a financial market in a general downward trend, with the total market value falling by 20% from its previous high, in a reasonable period. You can see just that in the crypto market, Bitcoin has fallen by 56% and Ethereum has fallen by 63%, in the last 7 months. The fall of these two dominant assets in the crypto market has caused a much larger plunge in other medium and small size assets.
What is a Bear Market
By: Ofek B. | 23-06-2022
The opportunities
While today’s market seems frightening and alarming, a profit can be made:
◉ Short-term investing – For these investors the Bear Market produces golden opportunities. Due to the volatility that can only increase in such market conditions, one can find coins with a low market cap that may decrease or increase in value due to a slight change of the dominant cryptocurrency (Bitcoin).
◉ Long-term strategy – In this investing strategy the Bear Market is just another period that will pass, as has happened time and time before. One can buy "discounted" coins that will show their profit in the long run.
In Conclusion
A bear Market can scare many investors. A lot of money is flowing out from the market and leading assets are cut in their value. But if you look closely at the market, you can find opportunities to make a profit in the short-term and long-term investing.
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