Hello crypto traders! Hope that you are making incredible profits with your investments in digital currencies and if you haven’t made a fortune then just keep some patients as winds are taking time to turn your way…..
But the things can be the other way as well and you might not be earning up to your expectations maybe because you do not know much about cryptocurrencies. And most of all, their feature of volatility but no need to panic as we are here to aid you.
Today let’s get to know about the Bull and Bear crypto markets. We are sure that you must have observed reviews about cryptocurrencies and they often state the terms of Bull and Bear markets so why not comprehend more about them. Here is a glimpse of what is heading towards you:
- What Is Bull Market?
- What Is Bear Market?
- Bull Market Vs Bear Market
- Differences Between Bull And Bear Market
- Advantages Of Bull Market
- Advantages Of Bear Market
- Disadvantages Of Bull Market
- Disadvantages Of Bear Market
Ready to fall into the pool of knowledge!
What Is Bull Market?
Be happy if you have entered a bull market because always remember that a bull market means things are going well and the conditions are favourable. In the simplest words, a bull market refers to the increase in value of any cryptocurrency and not only rise but in a very less time maybe a week or so. You might get astonished but at times the rise can be around 40% in just two or three days! What do you think? Is the Crypto Bull Market Over for 2021?
What Is Bear Market?
Being a part of a bear market isn’t a good sign because it means that the value of a cryptocurrency is decreasing. The downtrend depends on the market because it may be a decline of around 20-30% in twenty days to a month. Well, a common trait of traders during bear market is that they begin to sell their cryptos as soon as possible to lessen their loss. However, traders have found various ways to find out when the market is about to fall, but nothing is ever confirmed.
Bull Market Vs Bear Market
There are various reasons behind the rise and fall of cryptocurrencies but let us guide why prices grow at such a high rate and how do they dropdown. Well, whenever even the slightest signal of lift in prices gets to the ears of traders then start to buy the coins and since many invest more and more, so the values lift and everyone enjoys profit surge. On the other hand, when the coins lose even a little part of their value then people usually start to drain their money and so the values decrease more vigorously.
The phenomena of bull and bear markets are one of the reasons why everyone believes that cryptocurrencies are unpredictable and even history has recorded a bear market when traders lost -35% of their investment, while once there was also a time when many made a fortune with a bull market of +104%.
Differences Between Bull And Bear Market
The major difference between bull and bear markets is being optimistic and pessimistic. As long as the prices remain stable, everyone remains calm but when the prices surge, everyone wishes to take the chance of making money by investing money and gaining profit but when the downfall occurs then people begin to draw out their money because are pessimistic and believe that they might lose more if they wait any longer!
It is extremely important that you have the idea that in which kind of market are you stepping because each bull and bear market has its own strategies that help to minimize loss and expand the chances of profits. That’s why, if you are a newbie, it might be good for you to follow up some social channels to have an idea like Top 5 Crypto Youtube Channels.
Advantages Of Bull Market
Usually, a lot of people know how to take the advantage of a bullish market. For instance, when the coins go up, the investors try to buy as many coins as possible and sort of become crazy while as a result, during this time prices lift more and they make more bucks. However, the real test of your competency would be that when do you sell the cryptos. The highest benefit can be attained only if you sell them before the prices decrease but no one can tell you if they would go higher or not.
Advantages Of Bear Market
We would suggest that gain as much knowledge as you can before buying any cryptocurrency because many people are unable to fathom even the lightest volatility, but look at it as an opportunity because once you are confident that the coin would pick up the pace again then this can be your perfect chance! Buy the coin when it’s at its lowest price so that you can make more money with less investment.
Disadvantages Of Bull Market
You must be thinking that why would there be any disadvantage of the bull market! To some extent you are right but in the bull market lies the greatest enemy of humans which is greed. Many traders wait more and more before selling the crypto so that they gain more and more but during this period there are always chances of a sudden fall. So, make sure that you act wisely or you might lose even though fate gave you a chance.
Disadvantages Of Bear Market
The bear market is itself a disadvantage as who would like to fail to retain money with which they were planning vacations, new phone, house, and etc. During the bearish market, people lose money, and their investment decreases so what could so more painful than that so that’s its biggest disadvantage!
The best advice to any crypto trader would be that conduct as much research related to the digital currency you are planning to buy and never take any step hastily because every minute and even a single second matters when it comes to buying and selling cryptos.
