3 Tips for Investing in a Bear Market

Authored by Makara


Published July 26, 20222

Investing in a bear market can be daunting. Here are three tips to help decrease your stress and keep you on track through the ups and downs:

1) Consider dollar cost averaging (DCA)

DCA can help reduce risk and build up your investment over time. Using dollar cost averaging, you would deposit a consistent amount into your crypto portfolio each month. This results in buying more units when prices are low and less when they’re high.

2) Diversify your investments

If you're only invested in one or two cryptocurrencies, we recommend holding a more diversified portfolio (that's why we have baskets). Also, we recommend only investing up to 5% of your investable assets in crypto to ensure your entire investment strategy is well-diversified.

3) Be intentional about monitoring your portfolio

It can feel good to log-in and see gains, sure. But logging in during a down period will probably just make you feel stressed. And we don’t make good decisions when we’re stressed—like panic selling for a loss.

See how to set up dollar cost averaging on the Makara app.