5 Things to do during a bear market
NFTs can be a difficult space to navigate during bearish markets. Cryptocurrencies are often very volatile that could influence the entire web3 area during downward trends. While these moments can feel dull to many because of the lack of exciting new projects, there are still many things that traders can do to occupy their time until the market begins to turn around.
Manage your wallets
One of the first things people do when they first delve into crypto is trying to figure out what kind of wallet they should use. While there are multiple options available ranging from cold, hot, and warm, choosing to use only one wallet is less beneficial than one might think.
Opening multiple wallets are one of the most efficient ways to protect your crypto funds from scams and hacks. By operating separate wallets for different functions, traders can easily establish a wallet hierarchy to protect themselves.
There are three main wallet types that traders can set up during a bear market:
Burner Wallet - Used to mint NFTs which pose unknown risks
Trading Wallet - Your active wallet for buying and selling NFTs
Cold Storage Wallet - An offline wallet which stores the major liquidity
Learn about the technology
Blockchain is a complex topic that requires a lot of effort to understand. Fortunately when a bear market comes, there is plenty of time to study these concepts. Understanding how the smart contract works or learning a new programming language such as Solidity might not necessarily make you a better trader, while it can leverage your knowledge as a web3 user to understand the crypto space.
Research upcoming projects
While a bear market leave the NFT market stagnant, it doesn’t mean that NFTs are finished. New projects are being created all the time. You can find them on different websites such as UpcomingNFT and NFTCalendar.
Although it’s unwise to try and time the market (which is impossible) because the cryptocurrencies are highly volatilite - sometimes the price could change rapidly and almost randomly. Traders can still find good projects early by looking ahead by 2 or 3 months when they can expect the market to begin to recover slightly.
Join a community
Discord servers are a thriving environment for NFT and crypto projects. There are countless communities throughout the platform filled with friendly people who are willing to talk about blockchain technology with anyone.
It is an easy place to find some of the most intelligent people in the space to talk with. Community members share a common interest in web3 and enjoy the different discussions being held daily throughout Discord.
By joining a community and talking to different members, you could expose yourself to a true global community. People may offer valuable opinions, advices, and even job positions to work for their communities.
If a bear market lasts long, those communities could be some of the most beneficial places to visit. The members that stick around through the bad times are some of the most committed to web3. So taking some time to get to know them could be proven invaluable.
Create your own project
If you are exhausted diving into the others' options, there is still something else to keep you occupied during a bear market - create your own NFT project. There is nothing to stop anyone from doing so.
There are countless Youtube channels, such as Hashlips, which provide in-depth coverage of how to create a 10,000 set NFT collection and upload it onto IPFS. By the time your project is ready for mint, the bear market might have ended, and you could see yourself making a small profit.
