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Investing in Web3 Amidst Bear Market: GetBlock's Review of Opportunities
For traders: stablecoins, short positions with small leverage and 'staking sats'
First of all, we need to accept that bear seasons (just like bull ones) are inevitable and normal phases of the market progress. As such, the ongoing situation is a regular one; when the dust settles, it is something crypto get through in 2015 and 2018.
It should be mentioned that the majority of instruments useful and profitable in bullish phases of market cycles become dangerous when prices go down. That said, you should be super-cautious using high leverage and searching for low-cap gems 'to be early'.
Instead, you should reduce the risk rate of your portfolio; increasing the share of stablecoins might be a smart bet. Moreover, it's better to re-allocate your stablecoin holdings between various centralized stablecoins, e.g. between BUSD, USDT, USDC, and GUSD.
If you're not ready for such conservative U-turn, you can also consider experiments with opening short positions on Bitcoin and major altcoins. However, it's better to avoid mid-caps, low-caps and high leverage as the risks of liquidation are enormous.
By the way, the bear market is the best time to start buying large-caps (Bitcoin, Ethereum, and so on) through a 'Dollar-cost averaging' strategy. This practice is about investing a fixed USD (or your local currency) amount on a regular basis, regardless of the crypto price. DCA protects investors from price fluctuations;
For Web3 teams, bear markets allow them to focus on building new products. CEOs and investors are cutting budgets on marketing and promotion while short-term 'gamblers' are leaving the market.
As such, teams have an opportunity to create something sustainable and crucial for Web3 progress instead of overhyped Play-to-Earn platforms and NFT collections. Also, founders can hire officers with reasonable salaries.