Welcome to 2024, when the foundation of a new world is put due to the explosion of cryptocurrencies. The sector registers wild growth as industries and large companies worldwide begin to recognise the power of digital currencies and their related technologies. Even if the sector has entered a crypto winter over the last few months, digital currencies continue to maintain their high values. If you want to know what is the price of Bitcoin or Ethereum, check an online exchange platform that offers information about crypto value evolution.
The incredible benefits blockchain technology offers in terms of security, privacy, and financial efficiency made many people desperate to invest in crypto projects and add to their portfolios assets that promise to be future financial solutions. However, many beginners find it challenging to make the right move in this new sector, which is loaded with heavy jargon. One term everyone has bumped into lately has been the bear market. What does the bear market mean for the crypto industry, and what digital currency to add to your portfolio during this time?
What is a bear market?
All assets and markets go through periods of low and high prices. Their volatility makes them attractive to investors and transforms them into lucrative investment solutions. If you time your moves carefully, purchasing assets when their prices are low and waiting to sell them when their values spike, you can make significant returns on your investment.
We use the term bear market to define a market that experienced major price declines. Experts state that a market enters a bear phase when its index decreases by 20% or more from a high. Bear markets are worrying for investors because they mark declines and shrinks of the market and are a result of a combination of internal and external factors like geopolitical tensions, war, and economic issues.
The good news is that the average bear market lasts around 10 months. It might seem like a lifetime for an investor who witnessed their portfolio collapse overnight, but there’s some comfort in the idea that bull markets always follow bear markets. The bear market can prove the ideal opportunity to secure cryptocurrencies at lower prices and gain substantial financial returns when the market bounces back.
What is a bull market?
Bull markets are opposites of bull markets because they mark periods of extended value growth, and the index is increasing by more than 20%. Times of strong economic growth trigger bull markets, boosting investor confidence. You can gain significant returns during bull markets, especially if you bought assets when the prices were low during the bear markets.
What’s the best cryptocurrency to buy during the present bear market?
Now that you know what a bear market is and are aware of the benefits it could bring, you might wonder what the best crypto to add to your investment portfolio is.
Bitcoin is a safe store of value
Regardless of your experience in the crypto market, you have heard about Bitcoin, the digital currency compared to gold. It’s the cryptocurrency that started the explosion, and it has remained number 1 by market cap since its introduction on the market. When it was first launched, it served as a digital currency, but now it’s labelled as a dominant store of value in the sector.
Its safe upside is the main characteristic that makes Bitcoin the best digital asset to add to your portfolio. Regardless of the next market cycle, it will maintain its value considering its widespread usage and legacy. Bitcoin is the ideal cryptocurrency to buy when you don’t want to take major risks in the market but want to add some diversity to your investment portfolio.
Metacade is a great crypto to buy in a bear market
Metacade is a unique digital asset because it was created as a Web3 virtual arcade to enable people to play GameFi and P2E games. Users need the native token MCADE to gain access to the platform, engage with content posted on the ecosystem, or enter prize draws and competitive tournaments. Metacade is worth adding to your portfolio because it’s one-of-a-kind in the entire Web3 and encourages gamers of all kinds to join the inclusive platform and engage in GameFi projects.
Besides offering a wide range of games, it also provides Metagrants to game developers who can submit their proposals to the platform to gain a chance for their projects to receive financial support. The Metacade community votes for its favourite project, and the winner receives the necessary funding.
Ethereum is the safest layer 1 platform
Ethereum has kept headlines lately after it finalised the Merge and reduced its energy consumption by 99%. Specialists believe that it’s the best digital currency to buy in a bear market because it’s the leading smart contract ecosystem that enabled the creation of decentralised exchanges and non-fungible tokens.
Ethereum and Bitcoin are the two mammoths of the crypto sector, too big to fail, regardless of the state of the market. Ethereum supporters have always said that it has more upside left than Bitcoin because it has a wider use case than the first digital currency and a lower market cap. The thing is that most investors have both Bitcoin and Ethereum in their portfolio, so if you’re looking for currencies to diversify your portfolio and you already have Bitcoin, you should consider buying Ethereum.
Dogecoin is the original meme coin
Meme coins might not be a great investment during bear markets, but Dogecoin is the exception to the rule. Most meme coins lack a value proposition outside of the community hype, but Dogecoin is backed by a large community and has performed well during several market phases. Additionally, multiple well-known celebrities support its evolution and promote it as a worthy asset. After purchasing Twitter, Elon Musk stated that he was considering adding the crypto coin as a payment option on the platform.
Let’s wrap it up!
Cryptocurrencies are no different from traditional assets in that they register variations in market value and go through bull and bear markets. If you want to add them to your portfolio, you should definitely do it when their prices are low.
