There's no doubt the crypto bear market is here again. Bitcoin is down 70% from its all-time high and Ethereum is down 80%. Luna, once the third in the public chain, also fell during this period, and various counterfeit coins lost almost all their value. In a bull market, as long as you do beta investment with the general trend can get passive income. But in a bear market we need to use Alpha investments to find investment opportunities.

Discover market trends in macro markets

DeFi copies almost every model of conventional finance, from lending to derivatives. DeFi differs from traditional financial projects mainly in the use of smart contracts, more transparent information chain, and casting their own tokens as incentives.

But the lack of strong regulation of traditional finance, token price fluctuation is huge, even a whale operation can have a significant impact. Moreover, DeFi is always lack of integration with the real world, coupled with the high threshold to enter the blockchain, so that it has entered the bottleneck period from the rapid development period. DeFi's users have experienced the surprise of entering the coin industry, and now that they have figured out its formula, some slow-release token offerings have dwindled, DeFi will hardly be able to return the returns of a year ago.

To be cast surely strategy

On the basis of the preliminary judgment of the macro situation, if you can not judge when the token bottomed out, you can usually consider the use of fixed investment strategy. Allocation of the same amount of funds, regular and quantitative investment, although it may not be able to obtain excess profits, but a large probability of profit can be obtained through the smile curve.

Still, it's important to note that not all tokens are suitable for this method, and the Hyako project will only make the principal drain faster. Fixed investment projects require long-term investment, so it is more suitable to choose mainstream and gain more recognition tokens.

Stablecoin investment

Due to the high volatility of cryptocurrencies, it is difficult to make correct decisions due to FOMO sentiment, especially in a bear market, so using stablecoin is a relatively low-risk investment scheme. No matter Lending platform or DEX platform, there is no lack of investment in stablecoins. LP formed by stablecoins can also avoid free losses. While stablecoins have more use cases and less volatility, keep in mind that there are risks.

After the UST crash, the security of algorithmic stablecoins is worrying. There is no case that people feel very safe only by relying on algorithms so far. The information transparency of centralized stablecoins also has certain security problems, and the liquidation risk of overcollateralized stablecoins also needs to be paid attention to.

The plunge sent Curve's TVL, DeFi's largest stablecoin DEX platform, tumbling off a cliff, according to data from Footprint Analytics. So instead of blindly choosing, choose a stablecoin whose model you agree with.

Discover market trends in macro markets

GameFi's unique user base peaked at the end of 2021, peaked again in January, and has been choppy since then. There was a significant drop in late May, and new users were gradually declining. On June 8, there were 65,000 new users and 606,000 unique users, only 30% of the peak.

GameFi 1.0 took off, and one of the biggest things that people felt after playing all the games was boredom. Current games are not very playable, and most projects only use tokens as a reward mechanism to attract a large number of players. The project cycle is usually only a few months.

It's not easy to pick one GameFi project to invest in, and it's likely to turn into a leek for old users. This can be evaluated in terms of project popularity, new player growth, existing user retention, and token loop. At the same time, we should pay more attention to the dynamics of the project side. Making timely decisions according to the dynamics of the project side may seize the opportunity on the eve of currency price fluctuation.

In addition to paying attention to the macro situation of the whole market, the macro control of the project side is also very important. Although this is contrary to decentralization, effective control in the early stage can prevent the price of tokens from skyrocketing and plummeting, so that the project will develop for a longer time. Therefore, users should pay close attention to the dynamics of the project side, such as the statement of the project side in the community or the activities organized by the project side, can timely understand the future direction of the project, and make correct operations before any changes occur.

Conclusion

The best way to profit from finance is to exploit poor information. The data information of blockchain is open and transparent, and the integration and analysis of data is an essential step to reduce the information gap. People may lie, but data don't.

After grasping the macro trend, participating in community activities for promising projects, receiving more information and making quick judgments are all better ways to survive in a bear market.

Bull market is not overnight, bear market is also not a fall to the bottom, there will be repeated rebound. But today's internal and external environment, is not enough to support cryptocurrency out of the independent market. How to Survive a bear market? A thousand words into four words, is "don't mess around." Human nature is such that the lost always want to take a greater risk to gain back. In a bull market, you actually earn the beta of the industry with a bit of luck.