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The bear market is changing everything as we know it in the crypto space. Some of our favorite tokens now sell for less than half their previous price. And investing in new tokens now is proving to be a huge gamble. Investing during a bear market is a tricky experience.
The bear market is not peculiar to the crypto space alone. It affects traditional markets like Forex, stocks, real estate, bonds, and other sectors. The crypto bear markets, however, are typically more volatile than conventional markets.
This could be because traditional markets are more established, and the crypto industry is still relatively new. So, we encourage you to do your own research. However, the suggestions here will prove helpful if applied. So, let’s get to them now.
Short and Long-Term Investment Options in the Bear Market?
Although the bear market can be troubling, there are some profitable options if you know where to look. Let’s take a look at long and short options:
1) Short-Term Option: Stablecoins are your best bet if you are looking for a short-term investment during this bear market. During a bear market such as this, you’ll need to redefine your strategy and ensure it can guarantee your profit. Most advanced traders and crypto users now rely on stablecoins for the short term.
Moreover, stablecoins offer the opportunity for people to get paid in a crypto asset that does not fluctuate in price. Fiat-backed stablecoins such as USCD or USDT are excellent short-term investments. They have a lower risk exposure since they are backed by a stable asset such as the US dollar.
2) Long-Term Option: Bitcoin has been the subject of much speculation since its decline. With BTC currently trading at $24,188.64, there are concerns that the foremost cryptocurrency will struggle to get back to its previous high. However, history has shown us that bitcoin will survive any bear market. Therefore, many experts believe BTC will rise again, although the timeframe remains unknown.
Bitcoin’s growth since 2009 unlocked the technological potential of money and triggered sub-industries such as DeFi. Despite the bear market, investors retain their belief that bitcoin is a safer investment choice than most altcoins.
Moreover, traditional investors believe Bitcoin will be the future competitor to the dollar. Countries like Russia are actively trying to break the dollar monopoly, and many see Bitcoin as the best option. This outlook on Bitcoin already guarantees its future. So, regardless of the bear market, Bitcoin is bound to bounce back.
Which Altcoins Will Come Out Strong From This Bear Market?
It can be challenging to determine which altcoins are worthwhile investments in a continuously changing and unclear market. But we think the value of these coins could skyrocket in 2022:
- BNB: BNB is the native cryptocurrency of the Binance exchange. It is also one of the fastest growing cryptos during this bear market and could take a leading role once the market stabilizes. Moreover, the coin has a huge potential to revolutionalize. So investing in it could be a smart financial move.
Binance’s growth is one of the core reasons for the surge of its coin. Several blockchains and play-to-earn NFT games use Binance as their base systems. The BNB aims to be a security token like Ethereum and Bitcoin.
Also, BNB is often used as a local service coin on Binance. Holders of this coin enjoy a variety of commission discounts and promotional incentives. As a result, the BNB has the potential to survive the bear market and yield gains for its holders.
On the other hand, the BNB-USD pair has recently grown to be one of the strongest, which may also make it a wise choice for investments when the dollar value is declining. In addition, it is less expensive than Bitcoin and Ethereum as a potential investment.
2. MATIC: Polygon, a Layer-2 Ethereum scaling solution, has found its way to the center of the news in recent months. Having joined the Disney Accelerator program, one can only predict the huge role Polygon will play in the entertainment world, especially its token, MATIC.
Moreover, there are several reasons why owning MATIC is a considerable investment. But, the Ethereum Merge happening in September is the biggest reason of all. Investors are looking for cryptos that can possibly profit from the upgrade, and as a result, they are rushing to Polygon.
Polygon also recently unveiled a significant technology upgrade that will increase the value and appeal of MATIC to users and developers. With the expected boom on Ethereum, MATIC would be a good buy.
3. ZIL: Zilliqa’s into the metaverse world has yielded huge rewards, especially for the holders of its token, ZIL. The coin serves as an incentive reward and as a payment use case in the Zilliqa ecosystem. With the huge expectations of the metaverse, owning the ZIL token could be highly profitable.