As we’re all aware, the financial world is in the midst of a full bear market.
This refers to a long-term drop in stock prices, often accompanied by an economic recession and higher unemployment. As a result, the NFT market is significantly impacted. For investors, this can be an extremely difficult time, and many give up hope.
Thankfully, there is a silver lining to an NFT bear market; it’s a great time to invest while stock prices are low. And for those who HODL (hold on for dear life), there are fantastic rewards waiting when the bull arrives.
Here is our full guide on surviving the NFT Bear Market:
Try to stay away from degen projects that are only built on pump & dump – it’s only a gamble at this point. It might be a good play once or twice if you’re lucky, but the greed will have you buying the top and losing your money.
DON’T GET EMOTIONAL
Regardless of the market, emotions should never be a factor in your trading. Trades built on emotions are rarely successful ones, and the regret just isn’t worth it.
CUT YOUR LOSSES, OR WAIT FOR COMEBACK?
Although most, if not all, of the projects are down in price, you might have some bags that you bought for a higher price. Are you better off selling for a loss or holding and waiting?
Well, that depends on you. Just answer these questions:
- Can you afford a potential loss?
- Do you have the patience to hold and hope for a pump?
- Does the project REALLY have potential to make a comeback, or is it wishful thinking?
- Do you love being a part of the community?
Overwhelmed and need to clear your head? Go out, meet up with friends and family, do some exercise – remember that these are the most important components of life. De-stress, socialize, have some fun, and then go back with a fresh mindset.
Remember that NFTs are an investment above all; choose projects that you believe will hold value in 5 years’ time. Think long-term, do your research, and make an informed decision.
GET INVOLVED IN THE COMMUNITY
This means interacting with the community you love by building an audience on Twitter, saying your GMs every day, spreading positive vibes, and joining Discord channels. This is what it’s all about – a big family enjoying art that they love. We can’t do it alone – we’re in this together.
Last but not least – and we can’t emphasize this enough – make connections.
The best thing about this NFT bear market is the ability to connect with people and grow your network. Make the most of this opportunity, before the bull returns and everyone’s only concern is money.
And while you’re waiting, make an effort to improve every day. Learning to code, draw, trade or just educating yourself on the NFT world will put you a step above the rest. Don’t waste this chance!
WHY SHOULD YOU HODL?
Okay, so you’ve found a project that you really believe in. You love the community, the artists are doxxed, the buying price is low, and after doing your research you’re certain that this project will make it big.
This is when you Hold On for Dear Life – or HODL.
During an NFT Bear Market, the chances of altcoins losing value is higher than usual. This directly affects the value of your whole NFT collection, which could make you panic and sell to prevent yourself from losing even more money.
This is the wrong thing to do, however! The crypto market is volatile, which means things can change at any time. While this can cause prices to fall drastically, it also goes the other way. Prices will inevitably skyrocket again, and so will the value of your NFT. A trick that any veteran trader will tell you is that no matter how bad things may look, you need to hold on.
HODLing is the only real way to survive an NFT Bear Market. That, and a community that keeps you inspired.
ARE NFTS REALLY WORTH IT?
As a potential investor, you must be aware of the current financial climate. It’s in your best interest to make an investment that will reap rewards and to spend your hard-earned money on something that’s really worth it.
The crypto market is very unpredictable, going through sudden and drastic highs and lows with very little warning. But take what cynics say with a grain of salt; things are looking very promising in the crypto world. With countries like El Salvador adopting Bitcoin as a legal tender, and others soon to follow, it’s inevitable that values will increase in the next few years.
But what does that mean for NFTs?
Well, the value of NFTs directly correlates with that of cryptocurrencies. A token on the Ethereum blockchain will fluctuate with the altcoin itself, and the same with Solana and the others. So when crypto goes up – so does your NFT!
Essentially, an NFT is an investment like any other. Purchasing a painting is no different to buying a piece from the y00ts collection, so if you feel like that’s an investment that you’d consider, then NFTs should fall into the same category.
The only real difference is that non-fungible tokens are a more modern investment, with a higher chance of exploding in value in a short amount of time. Plus, it comes with a community like no other!
Bear Markets are tough, but the NFT community is tougher. If you believe in your project, and you follow our step-by-step guide to surviving an NFT Bear Market, we have no doubt that you’ll come out on the other end with no regrets. That, and a sizable reward for your efforts.
When the Bull comes, you won’t be sorry!