Unlock the smart investor’s guide to surviving a bear crypto market

420 DAO
3 min readJun 15, 2022

A bear market is one in which the value of cryptocurrencies has fallen by at least 20% and is continuing to fall. And given the current market conditions, there is no denying that we have entered a bear market.

Usually, during bear market conditions investors lose confidence in the market and get consumed by all the negative talk in the media. But that doesn’t mean you should throw up your hands and run from the markets too. You can instead do what a typical smart investor would to survive and make the most out of the bear market opportunity.

#1 Do not panic!

I know, I know looking at the dropping prices and crumbling market conditions how can you not freak the f*uck out! BUT! Managing emotions is the biggest and most important challenge during a bear market. As Benjamin Graham once said, “Individuals who cannot master their emotions are ill-suited to profit from the investment process.”

#2 Do not panic sell, HOLD instead

If you are looking to convert your cryptocurrencies into fiat currency (for example USD, GBP) then reconsider. Holding your cryptocurrency will help you re-enter the crypto market at a more favorable time without dreading any loss of money during the crypto market volatility.

#3 “When there’s blood on the streets, you buy.” — Warren Buffett

Basically, “buy the dip”! This is a common phrase used throughout the crypto industry. It means the practice of buying up an amount of cryptocurrency whenever there’s a significant bearish correction in the market.

#4 Practice dollar-cost averaging (aka do not put all your eggs in one basket)

Dollar-cost averaging (DCA) is the process of investing your money over time. So basically, instead of investing in one single lump sum, you divide your initial investment into several tranches and trade at a set time periodically. The idea behind this method is that by purchasing smaller amounts over some time as opposed to in one go, you’re more likely to average out with a better return.

#5 Perform rigorous due diligence (aka do your research)

As explained above you can use DCA to hedge your bets across a range of different crypto assets. And this will help reduce your risk. BUT it’s not enough to randomly select crypto assets and invest in them. You NEED to do your research and look for the following:

  • Look for the assets’ previous all-time highs. It is hard to promise a guaranteed return to its all-time high, but it can give you an idea of the assets’ potential.
  • Research the assets’ previous performance such as price history and see how well it has recovered during previous crashes. Previous performance is no guarantee of future price activity, but, again, it gives you a rough idea of what might be possible.
  • Check their roadmap, tokenomics and any new recovery announcement they may have made to assist in asset’s recovery.

#6 MOST IMPORTANT rule of the game — only invest what you can risk losing

Now having discussed all these points let us keep our eyes on the recovery that is most likely to come after this fall.


About 420 DAO

Who are we?

A community-based investment and development fund owned by its members who have full rights to participate in the governance of the DAO.

What makes us special?

420 DAO’s staking APY starts at 420,000% then gradually decreases afterward according to its tokenomics. And the tokens are released using a double-halving mechanism to strengthen their value over time.

How do we safeguard valuable members from quick flippers?

→ Staking rewards are paid only to the stakers.

→ The distribution mechanism is designed to benefit long-term focused members.

→ Harmonic reward system is present to make sure ongoing stakers get additional rewards from the unstakers.

How can you play to maximize your number of tokens?

The simplest way to maximize the number of 420, which also means maximizing the share in the asset-backed treasury, is to acquire 420 early and consistently maintain staking.

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