Bear markets are the absolute best for finding opportunities.
However a bear market can be divided in 3 stages.
Stage 1: Market turns bearish, money starts exiting the market. Denial, fear and desperation. Everything bleeds rapidly as liquidity dries up.
However a bear market can be divided in 3 stages.
Stage 1: Market turns bearish, money starts exiting the market. Denial, fear and desperation. Everything bleeds rapidly as liquidity dries up.
Stage 1 is not a stage where we want to buy and be long!
The only exception is extremely oversold days/days with liquidation cascades - these are the only days we want to buy oversold assets for the short term.
The only exception is extremely oversold days/days with liquidation cascades - these are the only days we want to buy oversold assets for the short term.
Stage 2: This is a stage where market goes into boring mode. Volatility is low and market chops sideways for months.
Coins continue bleeding. This is a stage where we want to look to find and accumulate hidden gems for cheap prices.
Coins continue bleeding. This is a stage where we want to look to find and accumulate hidden gems for cheap prices.
Stage 3: Bottoming stage.
High timeframe trend is about to reverse. Understand that you won't be able to buy the bottom majority of the time - and thats perfectly fine.
We want to be buying with confirmation of high timeframe trend reversal. (check last MA tutorial)
High timeframe trend is about to reverse. Understand that you won't be able to buy the bottom majority of the time - and thats perfectly fine.
We want to be buying with confirmation of high timeframe trend reversal. (check last MA tutorial)
Currently I would say the market is at the end of stage 1 possibly beginning of stage 2 depending on which asset we look at.
Letβs break down my bear market portfolio and my plan for buying.
Letβs break down my bear market portfolio and my plan for buying.
In case you forgot letβs remind ourselves that bear markets are all about capital preservation and surviving.
Majority of people wonβt be able to make money in a bear market.. but remember if you can preserve your capital you are already better off than the majority.
Majority of people wonβt be able to make money in a bear market.. but remember if you can preserve your capital you are already better off than the majority.
My bear market #crypto portfolio:
β’ $ETH (long term): 5%
β’ Stablecoins in #DeFi farms: 7%
β’ Trading portfolio: 8% - Short term alt trading/leverage trading
β’ Locked investments: 5% Various projects/funds (calculated at investment value)
β’ Stablecoins: 75% (BUSD/DAI/USDC/USDT)
β’ Stablecoins in #DeFi farms: 7%
β’ Trading portfolio: 8% - Short term alt trading/leverage trading
β’ Locked investments: 5% Various projects/funds (calculated at investment value)
β’ Stablecoins: 75% (BUSD/DAI/USDC/USDT)
As you can clearly see I'm majority fiat and waiting.
However my portfolio would look VERY different if I had a portfolio of half or 1/10 the size.
Let me explain.
However my portfolio would look VERY different if I had a portfolio of half or 1/10 the size.
Let me explain.
There are different risk profiles and strategies you should adapt based on your portfolio size.
β’ <$10,000
β’ $10,000 - $100,000
β’ $100,000 - $1,000,000
β’ $1,000,000 - $10,000,000
β’ $10M+
β’ <$10,000
β’ $10,000 - $100,000
β’ $100,000 - $1,000,000
β’ $1,000,000 - $10,000,000
β’ $10M+
Someone with a $10,000 portfolio should not focus on buying $ETH and $BTC but rather possibly aim to get whitelisted in NFT projects and gamble on dogecoins that either go x50 or -100% (as an example)
I will create a full guide on this so make sure to follow @macnbtc.
I will create a full guide on this so make sure to follow @macnbtc.
People with bigger portfolios (mid 7 figures, $10M+) should aim to spread risk and preserve capital while looking for that few opportunities per year when the market literally hands you free money.
All you have to do is identify the opportunity and pick it up.
All you have to do is identify the opportunity and pick it up.
I hold $ETH and 0 BTC.
I donβt plan on buying any long term $BTC unless I see a reversal in BTC dominance.
For now BTC has been in a bear market + downtrend vs alts for months.
I donβt plan on buying any long term $BTC unless I see a reversal in BTC dominance.
For now BTC has been in a bear market + downtrend vs alts for months.
#altcoins:
I only trade altcoins short term with around 8% of my portfolio.
Focusing on alts with upcoming events or narratives.
I created a short list of these last week:
I only trade altcoins short term with around 8% of my portfolio.
Focusing on alts with upcoming events or narratives.
I created a short list of these last week:
Stablecoin Yield Farms
I currently farm with around 7% of my portfolio spread across low risk and higher risk DeFi yield farms.
Around 2% is allocated for high risk farms/farming retroactive airdrops.
Will go in depth on these in another guide.
I currently farm with around 7% of my portfolio spread across low risk and higher risk DeFi yield farms.
Around 2% is allocated for high risk farms/farming retroactive airdrops.
Will go in depth on these in another guide.
My long term plan for buying is wait for a high timeframe trend reversal before starting to scale in. (as mentioned in my last moving average trend reversal guide)
Until then I will continue to take short term trades with around 8% of my portfolio which I afford to lose.
Until then I will continue to take short term trades with around 8% of my portfolio which I afford to lose.
- My goal recently has been focusing on building businesses outside of crypto.
- I want to grow my audience while teaching them everything I know for free.
- I want to grow my network. (after all you are the average of the people you surround yourself with)
- I want to grow my audience while teaching them everything I know for free.
- I want to grow my network. (after all you are the average of the people you surround yourself with)
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