What is a bear market?
In order to understand the term bear market, you need to find out who the bears are in the crypto market.
Bears in the market are called investors or traders who play down or take a short position in the market. This can not be called a position or a permanent classification, this term defines traders only within the framework of one transaction, since in the next one you can take a different position.
The comparison with the bear went for a reason, but because of the manner of the bear’s attack: it leans on its victim, pressing it down, like an investor who plays down, putting assets up for sale, creating additional offers and influencing the price decline.
Characteristics of the bear market
— Supply and demand
Most people here tend to sell, not buy. Therefore, the demand here is much lower than the supply, as a result of which the price of the asset falls.
— Investor psychology
The emotional component directly affects the behavior in the market. Investors are beginning to actively invest more equity to increase the likelihood of making a profit.
A bear market is associated with a weak economy, and in most cases it is very difficult to hit a big jackpot here, since investors make small investments.
The process of earning money in a bear market
1. Take advantage of the moment of price growth by buying assets at the very beginning.
2. Sell profitably when they have reached their price high.
The process is quite simple, but you should understand that there are more losses in a bear market than gains, because assets lose their value all the time.
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