The Overview of Bull Market & Bear Market
What is the bull market?
In the world of investment, a bull market usually indicates there is a positive movement, even making people jump right into investing without knowing what it is. The cryptocurrency investor who entered at the end of 2017, became a real witness of the investment could skyrocket overnight.
Lots of new funds enter the cryptocurrency environment and pump those funds into new projects. Thanks to this incident, the price of Bitcoin has been fantastic, even inviting the mainstream media and bringing people who have never heard of cryptocurrency or those who have not been interested in crypto before.
Investors who enter at the time of the Bull run must be very careful, as the saying goes up will definitely go down, and of course, it's easy to buy at the top of the bull when it happens. And it feels like it must have been a very correct decision, and when it has been a few months ahead will see a disaster when prices fall. When choosing your investment, you should be careful in analyzing every important asset, do not trade when inflation and prices are not stable.
If you are interested in earning income, you should choose your investment that has a high-value project that is still not well known. Do not buy the price and the volume skyrocketed because it is the best way to drop the price. Be sure to analyze long-term charts and not just because of the current volume and prices to make the right choice.
What is the Bear market?
A Bear market is a period of the downtrend. This occurs at the start of 2019 after the Bullrun ends, and the chart begins to correct itself. Because cryptocurrency is a new thing and has not been touched all, this is very shocking for new investors. After the prices start to fall, many investors got panicked and sold all their investments. This creates a lot of pressure on all markets, and this has not been completely covered.
While having a downward investment makes everyone feel depressed, this is also an excellent opportunity. The distressed cryptocurrency market tends to cut the price of each project because they follow the prices of Bitcoin. This means that smart investors will wait until the best price when everything is pressured to sell their investment. For smart investors, a broken market is a dream come true.
Investors take advantage of these prices. However, they must do a proper analysis before choosing the right assets. There are lots of choices at the moment, and if you can find the best among coins or tokens, you should know that it's a substantial project. Then you have the opportunity to take a position that may not happen again in the next few months.
How do you prepare a portfolio when you believe the Bearish is coming?
This might look crazy, and you are afraid that bearish is imminent, maybe your interest now is to reduce your positions, especially positions that allow high inflation to happen. Even though famous coins and tokens like Bitcoin and Ethereum can also find big losers during the Bearish.
Your best bet is to move the assets that you hold onto fiat or stable. This is the best asset held when it is bearish, it can also make the best position to buy dips (bottom shoots) when the market is in turmoil.
How do you prepare your portfolio when you believe Bullish is coming?
When the bleeding in your investment seems to have stopped, and you see the volume starting to rise again in several projects, maybe this time of bearish has begun to manifest. It's very difficult to identify when you are bombed (middle). But when the market cuts down, this is the best time to start educating.
Keep in mind that investors are pickier when buyers trust and trade to return the volume when they have burned it before. Only put your funds in a solid project that has a real function. This is a good time to enter into a better project than before your investment.
As always, it's very necessary to do your own research, and don't invest money that you are not prepared to lose. Cryptocurrency is a new financial instrument, and they are very agile up and down. It is important to diversify your assets to secure your financial future.
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