What should you do during a bitcoin bear market?
Bear markets may offer better prices for investors who believe bitcoin has long-term value. But that doesn't mean they should recklessly approach the market with fear, excitement, or other emotions. For some investors, a sensible approach to investing during a bitcoin bear market may look like gradual buying, keeping plenty of cash on hand, or avoiding trading or investing in bitcoin derivatives or leverage products.
Trying to predict the exact bottom of a bear market is rarely a successful or profitable endeavor even for veteran investors. Incrementally acquiring more bitcoin on recurring bases, however, has historically been a rewarding approach, especially during bear markets as shown in this chart.
Bear markets also present excellent opportunities for education. Reading or researching about bitcoin is often more satisfying for long term-focused investors during bearish periods when markets are less frothy. Tinkering with the technology and even building something that uses bitcoin is also a great bear-market activity.