What to do in a crypto bear market?
By Femi Babatunde & Zaradeen Ibrahim.
“Building quality products”
It’s no secret that the crypto market is filled with psyops orchestrated by scandalous projects. Many market participants have fallen prey to the promise of short-sighted projects. While the market situation may seem gloomy to the ordinary eye, it might be different for the observant and analytical market participant. Now, more than ever, one can easily weed out myopic teams that have left their so-called community. The bear provides an opportunity to carry out extensive research across a variety of projects without the FOMO one feels during the bull market.
We at Savecoins have tunnel vision. We’ve built our entire DCA product through the bear market, making it evident that we care about providing you with quality financial solutions and structured crypto-native financial products regardless of the short-term turbulence we are all faced with.
Develop your skills.
While it might feel like there isn’t much to do in the market at this time, we argue that now is a great time to add to your arsenal of quality skills you can use to contribute to the crypto market. As there are fewer market participants, there is an ease of dominance in any field you choose to develop yourself. You can learn how to code, start a YouTube channel, join a community and build with them, or start a crypto blog on Medium, etc..
Buying with DCA
Dollar-cost averaging (DCA), also known as recurrent buys, is a periodical purchase of financial assets as opposed to using your entire purchasing power at once. For example, if you have $1000 and you want to use it to buy ether, Normally, without DCA, you’d simply buy at a price you perceive to be fair. The risk associated with this methodology of obtaining assets is that market volatility can be unfavorable. After your purchase, the price of Ether could plummet to a price you did not anticipate, and you might have to sell at a loss.
If you were to use DCA to buy your Ether, here is something it might look like;
You’d split your $1000 into ten parts, 100 dollars each. On a regular interval, let’s say daily, weekly, or monthly, you buy $100 worth of Ether till you exhaust the $1000 you allocated for your purchase.
Why would you do this
Using DCA as a strategy to obtain financial assets helps mitigate the risk of short-term or irrecoverable price depreciation. Try our DCA calculator on savecoins to attest to the financial security and lesser risk DCA provides.
Research & Development
It’s no secret that the performance of the crypto market affects the blockchain industry. In a bear market, there is a wild winter, less fiat is coming into the crypto market, so protocols, companies, and DAOs have fewer transactions and liquidity locked in.
The blockchain industry has provided opportunities in research and engineering, but understanding what steps to take and how you fit into some roles can also be pretty challenging.
Finance / Research analysts
For financial and research analysts in traditional finance who are interested in working in crypto research and development, some steps will be highlighted about paths to take.
Technical research and analysis
If you understand financial concepts and theories, it will be easier to understand the mechanism behind most DeFi protocols. You understand that most features/products in DeFi are similar to those of traditional investment and retail banks. Knowing this isn’t enough to be a technical researcher or analyst. These are some of the things to tick off.
- Understand how DeFi protocols works
This involves reading white papers by important DeFi protocols in the industry. This will give you more insight into how yield mechanisms work, AMMs and several DeFi primitives. Prominent whitepapers on protocols built on different chains will also help you improve your knowledge of protocol architecture.
- Learn how to script and read code
- Smart Contracts
You have probably heard a lot about smart contracts and don’t really understand how they work.
Reading up on this will make you realize its possible mass importance in financial escrow services, financial contracts, and different forms of automation in finance.
Being a technical protocol researcher will require you to at least be able to read and understand smart contracts written in either Solidity or Rust. Chainshot provides easy and smooth access to this Ethereum (Solidity) development.
Research & Analysis (Macro)
Finance professionals and analysts will have it easier with this because it requires little or no scripting or researching code. The best thing to do is to learn more about the crypto market, especially with the fundamentals involving crypto assets, crypto-derivatives, and the various market dynamics.
This is for researchers interested in blockchain research. You can either learn through docs of your favorite Blockchains to understand the architecture, the layout, and different mechanisms involved. you can learn about Ethereum here .
UX engineers interested in working in crypto companies and protocols will have to embark on UX research for user flow, liquidity flow, and the necessary interface relating to the type of products these companies and protocols are building.
Backend engineers working in either TradFi, fintechs, or software firms are in high demand in crypto, and a particular entry into this market as an engineer will require you to understand some important languages and also the reasons for learning them.
Thanks to the web3.js library collection, you can communicate with a local or distant Ethereum node using HTTP, IPC, or WebSocket. you can check the documentation here.
As stated earlier, writing smart contracts is an important skill in the industry. But a big problem for most developers is they do not know what they are learning to write the contracts for; DeFi or NFTs?
Since a lot in crypto is/used to be open-source, it is important to know what exactly you are interested in learning to write contracts for. Understanding this is paramount to how your research fuels your curiosity and widens your knowledge of the implementation of the codes for these contracts. You can start learning at Ethereum and Chainshot.
From the writers’ views, it’s never been easier to be a recognizable member of a DAO. Joining the DAO, a Company of your interest, and contributing to the achievement of their goal could lead to an unexpected positive result. As crypto is generally open-source, so is the community. Open participation is always encouraged.
Nothing here is financial advice.