Crypto Investing during a Bear Market

What is a Bear Market?

Any economic market that shows a fall in prices of 20% or more from their most recent high illustrated the start of a bear market. This degree to which the price is falling triggers investors to start “panic selling” their investments. The trust that people have in the market decreases and weaker projects start to vanish.

Prices continue to slowly drop until it reaches an amount that the majority of investors find attractive. This means the end of the bear market and a new bull market cycle to begin. When the first investors start buying during a bear market, FOMO is created for a continuously increasing group of investors. As prices increase again, FOMO reaches larger and larger groups further increasing the price. Both bear markets, as well as bull markets are a result of the snowball effect.

Bear markets are mostly characterized by the temporary negative mindset of investors. During a bear market, investors tend to ignore any type of good news and have their main focus set on negative news. This leads to investors following their negative feelings and eventually selling their investments pushing the price even lower.

Fortunately, there are many ways to survive the bear market with a profit. Bad times also force companies to innovate. Stable projects are born in bear markets. Times like these are great for discovering gems and finding out how projects cope with a change in the market. In this report, you will find some extra tips on how to act during a bear market so that you will be able to start the next bull run with a profit.

Low Market Cap Coins

A great way to invest during a bear market is to focus on coins with a lower market cap. A low market cap means that coins are more volatile. A great project with a low market cap supported by a strong community most of the times results in significant growth whether the market is bearish or bullish. There are a few things you need to think about before buying a coin that has a low market cap. Looking only at market cap the chance is considerable that you will end up buying a so-called “shit coin”. There are a couple of factors you need to take into consideration before buying a Low Cap coin.

During the current 2021 bear market, we have some personal preferred low cap coins that we believe show great potential. Of course, this is based on our research and experience, being greatly involved, and having monitored the business activities of all of these projects. Of course, please take in mind that you should always do your research. We do not guarantee any financial growth. Having that said, we highly recommend checking out the following low-cap crypto coins:

  1. HAPI

Hapi is a cybersecurity coin that shows great potential using machine learning to quickly warn exchanges whenever stolen funds are deposited on their platforms, this way stolen funds can quickly be blocked until the situation is resolved. Cybersecurity projects are often projects led by a smart and determined team that share an important goal to achieve.

Current market cap: $10 mln.


Another cybersecurity coin, this time focused on defending websites from DDOS attacks. By creating a system in which people use their bandwidth to become a node that powers the network of a website. This means that whenever a DDOS attack occurs, a node will be attacked instead of the complete network. This will allow websites to successfully repel a DDOS attack.

Current market cap: $550.000.

3. xDAI

A stable blockchain designed for fast and cheap transactions. It also offers the seamless ability to move tokens between chains using the unique token bridge architecture. As a coin that enables cross-chain technology, it shows that it knows how to implement important technology that will play a critical role in the future of crypto as we further decentralize the crypto economy.

Current market cap: $40 mln

Promising Crypto Projects

Next to low market cap coins, there are also larger projects that are focusing on innovation during the bear market. These types of projects are ideal to hodl as they tend to innovate their way to bits of profit while other projects stagnate and fall with the economic disruption created by the bear market. Projects like Hacken, who understand the importance of continuous innovation. During the bear market, Hacken has developed and implemented cross-bridge technologies for all their active projects. Besides, they announced the potential launch of two more projects which has led to an increase of members and stakeholders making their community stronger during tough times.

Hodling some of your money in these types of stable yet innovative coins goes hand in hand with the “play dead” method. This method is inspired by the common advice given when facing an attacking bear. The play dead method means that you won’t pay attention to your investments during the bear market and act like you hadn’t invested at all. This way there won’t be room to panic as you won’t be constantly spammed by red candles. During this event, having your money invested in a nice promising stable coin will give you peace of mind.

Crypto Diversification

As for previously named options, there is also the ultimate combination. Diversification itself always has been the wisest, safest, and often, also one of the most beneficial ways to invest in any type of economical market. This also counts for crypto. Keeping a nice diverse portfolio with some small-cap gems combined with promising stable coins will give you the edge during any bear market. It will give you peace of mind yet also hope as low cap coins can still be potentially bullish.

While creating a diverse crypto portfolio there is also the option to invest part of your money in initial coin offerings (ICO), one of the riskiest crypto investments. Make sure to research as much as possible and only invest in tokens of companies with a strong reputation and a clear business model which shows exactly how the project is going to benefit the investors and the community. Many investors are choosing to invest in ICO’s during a bear market as the potential profit remains of astronomical size when a project is launched accordingly. However, it takes some thorough investigation and a good amount of luck to pick out the golden eggs. Even the best ICO projects can easily turn out as failures when timed wrongly.


Think long term: History has shown us that after a bear market another bull market commences. There is nothing worse than having to see a market show bullish behavior right after you decided to panic sell your investments. Invest in projects that you want to own for the long run, and don’t sell them simply because their prices went down in a bear market.

Focus on quality: When bear markets hit, projects that are overleveraged or don’t have any real competitive advantages tend to get hit the hardest, and eventually disappear. While high-quality companies tend to have a stronger foundation and a loyal community. During uncertain times, it’s important to focus on projects with rock-solid whitepapers and roadmaps.

In addition, trying to time the market is neither something we would recommend. Buying coins in a bear market is recommendable yet it’s completely normal that prices go down a little more after you bought. Instead take advantage of lower prices and buy more.

Bear markets are here to stay. They come and go every 2–3 years. They are unique opportunities to buy cryptocurrencies with a nice discount, so start preparing your bags for the next bull run!

Like Warren Buffet once said: “Be fearful when others are greedy, and greedy when others are fearful.”.