Top crypto to explore in a bear market

Market downfall is nothing new for an investor, but thorough research around top crypto assets, precautions, and clever tactic is the way to handle a bearish situation. 

Top crypto to explore in a bear market
Top crypto to explore in a bear market

Traders and investors frequently have to choose which token to invest in when the market is bearish. Good market research skills are one of the traits of a successful trader. In addition to receiving financial guidance, traders and investors should only put in the money they can afford to lose. Since crypto assets have shown high volatility over time, one should not put their entire life savings into them. Even though the market for crypto assets has been adverse for a while, some are still profitable for select traders and investors.

Since the mid of May 2022, when the market cap of all crypto assets fell to 1,137 billion USD from a high of 2,192 billion USD on 4 April, the price of crypto-asset has been in a bear market. Compared to this already low level, the market fell another ~58 per cent from 5 May 2022’s 1,805 billion USD to 9 July’s 756 billion USD. It has stayed roughly in the same place ever since.

Indeed, the crypto assets market is currently in a bear phase. Market-wide reductions, however, mask several intricacies and outliers, with certain crypto assets enduring or outperforming most. 

We will summarise these in this blog while also looking at which crypto-assets do the best in a bear market. And while some of the items on this list may come as no surprise, others might.

  1. Bitcoin (BTC)

It’s a sure bet that BTC’s adoption will grow. This indicates that bitcoin will keep its value higher than most other crypto-assets. It might even experience gains as traders pull out of more highly speculative altcoins.

The price of bitcoin has been constant for the previous month and has dropped by 55% since hitting an all-time high of $69,044 in November 2021. Here are the equivalent movements for a few more significant coins, in contrast:

  • Ethereum has dropped 62% since its all-time high in November and by 20% during the past month. 
  • Cardano has increased by 5% over the previous month but has decreased by 79% since September ATH.
  • Solana has decreased by 84% since November ATH and 35% over the past month.
  • Dogecoin has dropped 89 % since its all-time high in May 2021 and 23% during the past month.

The 55% decline since November isn’t fantastic, but bitcoin has stabilised in recent weeks compared to other major coins. It indicates that BTC is still the “safest” option if you wish to store your money in crypto assets.

Most crucially, a new bull market won’t start without BTC first soaring, just like it did during the bull runs of 2017 and 2020–21. Thus, it is currently the most acceptable choice. 

2. Ethereum and other Altcoins

Even though we’ve only recently contrasted Ethereum adversely with Bitcoin, it’s worthwhile to suggest it as a crypto asset to buy during a bear market. That’s because the economic crisis has caused it to be excessively undervalued compared to its potential.

  • First, Ethereum remains the most widely used asset on a blockchain platform, accounting for 64.65% of the entire decentralised finance (DeFi) market, with a total value of $69.58 billion. It has increased from 54% in April, the same as how BTC has grown in popularity, indicating that as the economy has become less certain, users have turned back to Ethereum.
  • Second, Ethereum’s switch to a proof-of-stake consensus mechanism is a significant development. It finished its testnet merge, clearing the path for the actual merge. As the tentative date for Ethereum Merge gets finalised, the price of Ethereum (ETH) has jumped over 50 per cent in the last seven days. As a result, Ethereum will become more scalable and energy-efficient, increasing the demand for ETH.
  • The same logic holds for other altcoins with solid fundamentals. It covers crypto assets like Cardano, XRP, Avalanche, Polygon, Polkadot, and others growing steadily due to the general market and macroeconomic situations. 

As a result, they are significantly undervalued, which positions them for a potential steep climb once the bear market ends, and the bull market resumes.

3. Binance Coin and Exchange Tokens

Regarding relativity, another token that has declined noticeably less than other significant crypto-assets is the Binance coin (BNB). It has fallen by 3% over the previous month and by 57% from an all-time high of $686 established in May 2021.

BNB price is still sustained. It continues to be used even during a down market because it is a utility token that offers Binance customers discounts on trades. In other words, there is still some fundamental need for it, and investors might place greater trust in it because of its connection to the most significant exchange.

4. Stablecoins

There’s no denying that most stablecoins have, on average, held their value more than non-stablecoin crypto assets. These need to highlight among the crypto assets that perform best during a bear market.

Stablecoins like USD Coin (USDC), Dai (DAI), Binance USD (BUSD), Tether (USDT), and the Pax Dollar (USDP) are still 1:1 tied to the US dollar, which means that they have gained or lost 0% during the current bear market. Stablecoins are the best of a fragile lot. However, most traders prefer investments that increase in value (rather than stay the same). 

Analytics of top 10 current crypto asset prices

Despite the harsh crypto crash situations, crypto asset prices are increasing, and the market is sending investors bullish signals. Bitcoin, Ethereum, and many other crypto assets are experiencing significant growth. Therefore, before making a wise investment choice in crypto wallets, crypto-asset investors must keep an eye on the most recent crypto assets values.

The top 10 crypto asset prices are listed as per the Analytics of 08th July 2022

  • Bitcoin (BTC) – 22,038.71 USD (up by 8.07 %)
  • Ethereum (ETH) – $1,254.41 (up by 7.17 %)
  • Tether (USDT) – $0.9995 (up by 0.03 %)
  • US Dollar Coin (USDC) – $1.00 (up by 0.00 %)
  • Binance Coin (BNB) $ 0.243.48 USD for (up by 3.07 %)
  • Binance USD (BUSD) – US$0.9993 (down by 0.07 %)
  • XRP (XRP) – US$0.3541 for (up by 7.39 %)
  • Cardano (ADA) – USD $0.4832 (up by 3.82 %)
  • Solana (SOL) – 38.37 USD (up by 4.18 %)
  • Dogecoin (DOGE) – US$0.07171 (up by 4.78 %)

The total value of all crypto assets is US$972.80 billion, up 15.49 per cent in the last 24 hours on a volume of US$64.64 billion as per the analysis.

Diversify your investments across different crypto assets

Similar to how it’s practically impossible to anticipate when a lousy market will end, it’s hard to predict which of the 20,000+ crypto assets will recover quickly or see the most significant rise.

Using Unocoin’s Crypto Basket for various crypto assets is one approach to diversifying your chances. This way, you’ll lower your overall risk. 

Of course, investing in a few crypto assets isn’t enough. Before purchasing any crypto assets, you should conduct thorough due diligence and check for the following:

  • Peak: No cryptocurrency is guaranteed to reach its previous all-time high, but looking at it can give you an idea of the asset’s potential.
  • Performance in the past: Check the asset’s price history using an exchange like Unocoin to see how well it has recovered from crashes in the past. Does it consistently outperform other top assets, or does it strongly correlate with the rest of the market? Although past performance does not predict future price activity, it does offer you a general indication of what is likely.
  • Upcoming roadmap announcements: Introducing a significant update or roadmap development can help an asset’s recovery. These can involve rebranding, the introduction of the mainnet, or a new relationship.

Crypto and global impact

Another industry where enormous game-changing changes are potential is global remittance. In an integrated environment, consumers can easily send money overseas at a reduced cost, with faster settlement and shorter processing periods. 

Although the crypto-assets market is highly unpredictable, experts think a disciplined investment plan can produce good long-term returns. Because crypto-assets investments are long-term, investors do not need to worry about market timing. 

Diversifying your crypto holdings and making SIP investments should be your guiding principles to reduce risk. Investors should avoid leveraged trading, high-frequency trading and illiquid crypto assets while diversifying their portfolios.

Summing it up

To protect their capital from market volatility and instability, investors should have specific, time-bound investment goals and avoid letting FOMO (fear of missing out) dictate their approach. Investors in the crypto-asset market should educate themselves, conduct due diligence, and always use caution.

Recognising fear and greed are potent motivators that result in losing transactions is a crucial first step before placing a trade. A clear strategy might mean the difference between generating a profit and losing money. Another seemingly simple but challenging skill to learn is taking profits.

Greed will frequently hold your emotions making it hard to take profit in the hope that the asset will increase in value further. This raises your danger of losing money on the deal, especially if you don’t use stop losses. Take profits, make sure you have money aside in case of crashes, and preserve your composure as the bearish season approaches. Become part of Unocoin to get more insights into the crypto future.

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Disclaimer:
Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).