Bear markets: your chance to create substantial wealth and exponentially increase your position in crypto & NFTs.
But how do you ACTUALLY do it, apart from "buy the dip" advice from your neighborhood influencers?
In this complete guide, I will teach you the principles I use to get the most out of NFT bear markets.
Principle #1: Focus on mitigating risk
NFTs & crypto will continue to soar in the future, but the truth is that 99% of the current NFT projects aren't going to make it.
This is why your absolute top priority is positioning yourself with a mindset of surviving beyond all else.
So start by figuring out what your risk tolerance is.
If you can't sleep at night feeling safe with your current store of value, you won't be able to make rational decisions or be ready to pull the trigger when it matters the most.
(inspiration down below)
Principle #2: Stack ETH
Assuming that you have access to capital, I suggest buying ETH to increase your buying power as well.
All you need to do is simply time the local bottom in the most volatile asset class in the world with a lump sum... Right?
A much better move is to average your way in through Dollar-Cost-Averaging (DCA).
DCA is all about hedging your bets: it restricts your potential upside to mitigate possible losses but serves as a much safer choice, reducing your chances of taking severe hits.
Most exchanges have features that support DCA.
Look at your risk tolerance, then set up automatic triggers in your desired exchange accordingly. This will help you avoid looking at the chart(s) 24/7.
I personally do a weekly schedule every Monday.
Principle #3: Buy blue-chip NFTs
NFTs have shown some interesting price movement as they have drastically dropped in value during the most recent bear market.
This is completely normal considering crypto is usually the first asset class to get dumped during extreme macro events, so many retail speculators leave the market amidst extreme fear that crypto is going to 0.
But from a fundamental value standpoint, the teams or visions behind these teams haven't changed, meaning you are essentially able to pick up some of these incredible assets at unreal discount prices.
Now before we move on and dive deeper into our evaluation criteria for shopping NFTs during scarce market conditions, let's talk about how the NFT market typically moves:
During an NFT bull market, the market mainly rotates based on hype. But during an NFT bear market, the market consolidates back into fundamental value for safety.
This means you'll want to steer far away from projects with low fundamental value as most of these projects will be at 0 when the market fully recovers.
Sure, being a degen is fun, but now's not the time for that unless you want to increase your risk significantly.
Principle #3.1: Invest in high-value projects
"But ser, how do I gauge fundamental value?"
I look at a myriad of different factors. Let's break them down below. ↓
Market Cap & All-Time Volume
Projects that have high market caps & all-time trading volumes are considered more established.
Look for projects that have survived bear cycles in the past, as these are considered safer picks amidst uncertainty.
i.e. amount of capital
Projects with more capital in their war chest(s) going into a bear market can survive as they can stay heads down building without the added stress of producing or exploring new revenue streams.
Look for accrued royalties, successful investment rounds, high price mint-outs, etc.
i.e. execution risk
Naturally, you'll want to invest in teams that have a higher probability and track record of executing on their promises.
Look for successful track records both inside and outside of web3, alongside a solid advisory board.
An early edition of something is typically seen as a safer store of value - these are basically cemented as "grails" and carry lots of speculation in terms of future value.
Look for historical significance, gen art, and archeology.
or networking effects
Many investors seek safety in projects that offer instant utility upon entry.
Examples are private communities that offer networking opportunities, software that simplifies vital workflows, and governance DAOs.
Don't get mad if I didn't list your project - you're free to invest in whatever YOU feel is best. The above projects in each their own categories are just meant to serve as examples and are not limited to just those displayed.
Azuki still has tremendous potential upside but is in a weird position given the overall sentiment & uncertainty toward @ZAGABOND's history.
However, needless to say, Azuki has done an incredible job of rebounding after all the May 9 @ZAGABOND FUD and is, in fact, doing better than the majority of blue chips post-consolidation.
Azuki remains at the top of my list for discount pickups if you're willing to slightly increase risk.
Here's my personal list of projects I hope to be increasing my exposure to in this current bear market:
Principle #4: Increase your buying power
"But ser, I don't have money to DCA into ETH or buy NFTs at discount prices."
Most people would tell you to increase your risk and just try to get lucky on degen plays... But this is not the wei. Instead, I'll give you some focus points to help increase your buying power. Then you'll take a portion of that new money and deploy it using the strategies above.
We're optimizing for $$$, and these should be your top priority.
Increase Your Salary
switch to a higher-paying job or produce an additional income stream
Be vocal and proactive.
Get good at negotiating.
Don't be afraid of job-hopping if it gets you closer to your goal.
Read the books below to become a beast.
Build a Brand
Your Twitter acts as a funnel - don't let it go to waste
Think about what web3 niche verticals you're passionate about, and start producing content and network with others on Spaces.
It's slow but well worth it.
I'll create a guide for this eventually, so make sure to stay on the lookout if you want to strengthen your presence on social media.
Increase WL Opportunities
One of the best ways to leverage your network amidst a bull market
One of the best ways to increase your capital is by maximizing your WL opportunities.
This is more so a strategy to leverage during bull markets as there are a ton of projects launching new projects and allocating whitelist spots to prominent communities & projects.
Attach yourself to an alpha group/collective and start offering services to them in exchange for WL spots. This will enable you w/ lots of opportunities.
Nothing to leverage?
Break into a high-value industry
Break into a high-value industry and get the ball rolling.
Best industries to be in for time & financial freedom:
- Tech Sales
- Digital Marketing
I recommend tech sales. SDR -> AE will get you to 6-figures within a year.
There is a huge demand for professionals in tech sales, but if you want to break into tech sales, you'll have to prepare and be sharp.
I've listed a couple of great forums down below to guide you on your path to becoming an SDR if that's the route you choose to go.
If you don't have the capital to operate in a bear market soundly, then you need to disconnect from NFT Twitter and focus on increasing your earning power.
Find an industry you're passionate about.
Predicting future bear markets
Bear markets are tough to predict because NFTs are still in discovery in terms of what type of asset class it's going to fall into. Personally, I draw many parallels to how ICOs would overextend a few years ago:
- Everything is green
- NFTs & crypto start trending on social media
- Your friends & family start asking you to teach them about NFTs
- You start thinking you're a walking legend & a genius trader
- You start looking at other asset classes as irrational & stupid
So do yourself a favor and develop a sustainable system during bull markets instead of trying to time the local tops in the most volatile asset class in the world:
- Stay liquid
- Always take profits
- Don't sell your blue-chip NFTs for degen mints
- Don't buy in at ATH
Complete Bear Market Workflow (Recap)
- Risk allocate your portfolio; never overexpose
- Always mitigate risk & be safe above all else
- Evaluate every project fundamentally
- Increase your earning power
- DCA into ETH
- Stay liquid and increase exposure to blue-chip NFTs
- Touch grass
That's it, my fellow degens.
I really hope you found this guide helpful.
If you did, please follow me at @krissyos for more content like this as well.
And last but not least, feel free to share this with your fellow degen friends to keep them safe and sound during scarce market conditions!