Strong bear runs in the crypto space are always the most dramatic. It is very easy to make plans and talk about how crypto will revolutionize the World when things are going according to plan, and we are profiting heavy from such situations. However, bear markets can really put us to the test in terms of what our expectations going forward can be, especially if we are caught off guard.

A Matter of Perspective

The entire space is taking a beating right now and Hive is not excluded. We have had brelatively stable prices around the 90c - $1 range for a couple of months and it felt like we had really settled around a value. I am sure some prices, thrilled at the relative stability were already making medium term plans at those prices based on the assumption that bwe would not deviate too much from it.

Now we are around upper $0.7s and nobody knows the floor from here on. We could continue to see a dip as long as the market takes a beating until it becomes impossible to predict just where we are headed. For many, especially those who have not experienced the bears in this magnitude on Hive - it may mean plans have been ruined.

However, experience is the best teacher on this one. For others , there has always been the knowledge that prices are a mirage in the crypto space and volatility is the order of the day. These set of people have spent time positioning themselves for a potential downturn by de-risking the impact of a downturn in prices.

It is thrilling to know these days that there are actually things we can do about bear markets to prevent our assets being wiped off. Even the most ardent crypto believer will feel the shock should his/her assets be halved overnight, or worse. Hedging against a potential crash is something you learn by experience.

From stablecoins to DeFi, there are a vast array of options to consider when it comes to risk mitigation in the crypto space. These options while not entirely risk proof, are certain to ensure either the continuous growth of our assets, or a solid buffer against any potential decline in value.

Praying for the Dip?

Of course there are also reactive rather than proactive steps to take during a dip. Some investors actively wait for the next dip to by, and some have actually been praying for this sooner rather than later. It is common knowledge that if you really want to profit, the bears are the perfect opportunity to do so, and this is not lost on some experienced investors.

Conclusion

Whatever strategy you want to take either during or in anticipation of a bear market is valid. It is also worth noting that as the space matures in the future, we are going to see a lot more innovation geared towards stability. In the meantime, invest in assets that are here for the long term because with crypto, we are guaranteed a rollercoaster ride.