The bear market is the winter season of crypto and NFTs. It creates a stressful scenario for investors and traders who have spent their entire time and money on Web 3.
Popular blockchains like Ethereum and Solana have had significant drops in NFTs, which has caused many floor prices to drop and many people to sell their NFTs for a loss.
But don’t panic, because every investment carries some level of risk that you can’t avoid. The key is to figure out how you’ll survive through NFT bear markets and similar circumstances.
What Is an NFT Bear Market?
A bear market occurs when the market experiences extended price falls. This is a typical scenario that describes a situation when the market price drops by less than 20% from recent highs, along with negative sentiments among investors.
Why Do We Have An NFT Bear Market?
As much as we would like to avoid bear markets and always be in a bull market, it doesn’t work like that.
Unfortunately, like any other investment asset, it’s not always sunshine and rainbows in the NFT market. Of course, like the traditional market, it’s normal that we also have some downtime like this.
What Can You Do To Survive The Bear Market?
1. Stay as liquid as possible.
The stop loss tool is available to crypto trading apps for a reason—to stop burning money. You need to do that in your NFT portfolio.
Stop losing money by selling the middle-range NFTs you own that you don’t care about. Don’t let them just sit in your wallet, doing you no favors. Convert them to stablecoins that you can use for other purposes.
Most of those NFT projects will most likely not survive the bear market anyway. They will just end up having no value in the future.
2. Search for NFTs that are cheap now that you couldn’t afford before.
There might be some projects that you really love and believe will be the next big thing, but you can’t afford them.
You might be able to afford it now! Since cryptocurrency is much cheaper and NFTs are cheaper too, you can now afford to buy the NFT projects you couldn’t afford before.
Who knows? They might be the next blue-chip projects.
3. Focus on blue chip projects.
Speaking of blue-chip projects, you shouldn’t take your eyes off them now. The bear market is the perfect opportunity to enter into these projects.
Blue chip projects like BAYC, Cool Cats, CryptoPunks, Doodles, World of Women, and others may have a lower floor price now, but their value over time, especially after a bear market, will be even higher.
Most holders that are panicking or losing funds will most likely sell their blue-chip projects at a loss. Therefore, monitor these projects’ floor prices and see if you can buy them at a massive discount.
4. Be Extremely Aware Of Your Mints
We hate to break it to you, but you can’t make degen moves as you did in the last bull market. You need to do extensive research on the projects you want to mint to avoid getting scammed and burning more money.
Be a smart investor and always do your own research.
4. Consider Taking Some Profits
Despite being in a bear market, there are still some projects that did well, like yOOts.
However, even though this project did well, we recommend not holding them. What you can do instead is flip them and take some profit.
The market now is too unpredictable and unstable for you to hold any new projects. As we said above, it’s much better to focus on blue-chip projects at this time.
Therefore, taking profits to save up for more valuable assets is the smarter move.
The Future of NFTs
Despite the current economic status and other issues that our world is having, big brands are still continuing to prepare for the future of Web 3.
Here are some examples for your reference:
- Facebook is investing more money in the metaverse than it previously did.
- Coinbase has made an NFT marketplace available to its 68 million users.
- Beeple NFTs were sold for over $69 million.
- Opensea’s $13 billion NFT trading volume last year
- Gcash, Paymaya, and other e-wallets and banks are integrating crypto features into their apps.
These are all clear indicators that crypto and NFTs are here to stay. These big brands are betting more on it than ever.
Therefore, stop overthinking and start strategizing instead. The bear market is a great opportunity to increase your portfolio and experience. Don’t get caught up in the negatives and start making your own moves.