Being Smart During A Bear Market

If you’re reading this, especially if you’re reading this in mid-2022, you’re probably worried about your investments, given that we’re right smack in the middle of a bear market. Most cryptocurrencies and stocks have fallen and the market sentiment is generally quite negative, which is definitely cause for concern.

Yet, as Warren Buffet once said, “be greedy when others are fearful”. When others are selling and market sentiment is uncertain, it might be the best time to buy quality cryptocurrencies – and at a massive discount.

This has shown up in the area of stocks in the past: a year after November 2008 (when stock markets crashed and investors were extremely pessimistic), the S&P 500 returned 22%. Yet, when investors are confident and consumer sentiment is high, research shows that the S&P returns just over 4% on average during the following year.

Here are three strong cryptocurrencies that will likely last through the bear market and give you stronger returns when the market inevitably picks back up:

  1. Ethereum (ETH)
    Ethereum is almost a no-brainer, with the number of projects just built on Ethereum alone. It’s home to digital money, global payments, and applications, being a decentralized, open-source blockchain with smart contract functionality. The number of projects built on Ethereum and transactions done with it increases by the second. Although the current market sentiment is negative, ETH has shown its potential to grow and has even more potential ahead to grow; most experts would definitely say that choosing to purchase ETH now is a smart financial decision for the long term.
  2. Polygon (MATIC)
    Polygon is a Layer 2 scaling solution that speeds up transaction speed on Ethereum smart contracts, increasing it to millions of transactions per second. Various scaling techniques such as sharding are used to reach this high level of scalability. It has also been going into various partnerships over the years, which shows the team’s level of initiative. The Polygon native token MATIC is used to pay fees on the network, and MATIC tokens can be staked to earn more rewards in the form of fees generated by the network. Given how innovative the Polygon team is, many would expect that MATIC will be a promising token to hold right now.
  3. MetaPocket (METAPK)
    MetaPocket is a digital wallet optimized for GameFi that supports multi-currency, multi-layer and cross-chain transactions. It lists almost all the top GameFi projects and is compatible with a huge range of platforms as well. Users can benefit from exploring and interacting with all the blockchain games as well as earning from staking their GameFi tokens. In-app, there are also several functions including a sniper bot that allows users to snatch up launch tokens at incredible speeds, which will subsequently increase one’s profits. Developers and users alike can benefit from MetaPocket’s inherent community aggregating ability, and use the METAPK token for earning, getting rewards like airdrops, as a security, or even as fees for listing their games. With MetaPocket’s continued community growth and both GameFi users and developers flocking to it, it would be no surprise that METAPK is positioned well to grow once the market bounces back.

The similarity between all three above are that they have very strong functionality, which means that even when fads and the weak seasons tide over, they are likely to stand strong and keep increasing in value, giving you a much higher return for what you’ve paid. This is not a recommendation to time the market as nobody knows when the peak and bottom will be, but being in a definite bear market, it’s a great time to start amassing the tokens at a relatively lower price. While Bitcoin definitely has first-mover advantage in cryptocurrency and has strength, it loses out in terms of utility and hence might not be our top choice at this point in time.

If you’ve been wanting to invest or are getting worried about your current investments, this could very well be the time to start or work on your dollar-cost averaging.

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