How to Invest in a Falling Market: Key Tips to Profit in a Bear Market 2023

The cryptocurrency market and the stock market are experiencing a significant drop. It is difficult to predict how the cryptocurrency market will behave. Analysts’ predictions do not always come true, and constantly occurring events influence cryptocurrency and stock quotes. Trading implies that you are prepared for the constant risks of financial loss, from which neither the novice nor the more experienced investor is immune. 

What if everything went wrong and the market started to fall? Today, we will tell you how to act when the entire portfolio is at risk, and no market changes are expected.

Best Tips on How to Survive in a Bear Market

It’s never fun to watch the value of your portfolio drop during a market downturn. Thus, below are key tips to help you capitalize on volatile market conditions. Let’s get started!

Tip #1 Hold Safe Assets in a Market Downturn

Try to think calmly and clearly. Admit that you are not able to control the situation fully. Do not rush to sell all assets from your portfolio at once. If it contains long-term assets whose fundamentals are stable enough, try to hold them.

Tip #2 Expect the Best — Prepare for the Worst

Financial losses are completely normal in a falling market. Stay rational and look for good ways out of this situation in the event of a loss of investment.

Tip #3 Maintain a Balance

Make sure that high-risk assets, which are more profitable, do not occupy a large part of the portfolio. When the market falls, an unbalanced portfolio can decrease in price significantly.

Tip #4 Buy Assets Regularly Regardless of the Market Trend

The constant purchase of assets, for example, monthly, leads to averaging of their prices for your portfolio, which in the end may turn out to be more profitable than their instant sales. After all, markets are more likely to rise than fall, and after each decrease, there is a new increase. However, be prepared that growth can sometimes be expected from several months to several years.

How to Prepare for a Market Downturn to Minimize Losses?

To avoid significant financial losses in the event of a market downturn, we recommend that you proceed as follows:


      • Diversify your portfolio. Hold different types of assets in it: stocks, bonds, stable currencies, gold, real estate, cryptocurrencies. Your portfolio depends on your investment expectations and risk appetite. However, the very fact that it contains a variety of assets that do not correlate with each other will reduce the risk and the size of its drawdown.
      • Always invest only small amounts. If you have the opportunity to make investments, then make sure to spend small amounts of money on it. It is not a good idea to spend your last savings on investments and be completely without a financial airbag.
      • Buy stocks of companies that are in demand even when the market falls. These are mainly food and medical services companies. Their earnings usually remain more or less stable in any situation, and the share price does not drop so much, even with a significant market downturn. Thus, it is always worth having such shares in reserve.
      • A falling market has its advantages. If you are careful enough, you can buy promising stocks for a small price during the fall. The bearish trend is the best time to buy all leading cryptocurrencies at bargain prices.

    Thus, if you are interested in buying some crypto, you should definitely think about doing this at Switchere. On our platform, you have an opportunity to buy all leading cryptocurrencies in the fastest and most convenient way using your credit card. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.

    What Is a Bear Market: Key Things to Know

    Remember, the market drawdown can be different. If assets fall in price by 10-20% of the current prices for a period not exceeding two months, then we are talking about a market correction. Price corrections occur approximately every two years and are a good buying opportunity for long-term investors.

    If the market decreases by more than 20% of the maximum prices, the situation can be more serious. In this case, the market may experience a bearish trend, which usually indicates a general recession in the global economy. The bear market is characterized by strong volatility, panic selling, and increased trading volumes.

    According to statistics, the bear market takes place about once every eight years and can be in this state for quite a long time (up to several years).

    How to Avoid Mistakes in a Bear Market?

    A certified financial planner, Brad Lineberger, which manages about $165 million in assets, commented on this issue:

    Have the discipline to stick to your plan even when it doesn’t feel like the right thing to do. Checking your emotions at the door is the hardest aspect of being a successful investor, but it’s the most important thing to do.

    Let’s also cite a Founder and Chairman of Caxton Associates, Bruce Kovner, who was a successful trader, focused on and forex futures trade. Thus, Bruce Kovner highlights that maintaining emotional balance while trading is crucial:

    To this day, when something happens to disturb my emotional equilibrium and my sense of what the world is like, I close out all positions related to that event.

    He also said one important thing relating to making mistakes during trading:

    Michael Marcus taught me another thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.

    Thus, treat every mistake as an invaluable experience and move on, since after each decrease, there is always a new increase!


    A falling market is a natural phenomenon. It is normal to incur financial losses during a drawdown. Thus, take it easy and stick to your chosen strategy or plan. To make this period less painful, you can diversify your portfolio and invest only small amounts, the loss of which will not ruin your budget. 

    And, of course, there’s one golden investment rule that you should always keep in mind: Never invest money that you can’t afford to lose!

    Which other investing tips in a bear market do you know? Feel free to share your favorite ones in the comments below!


    This article is not an investment recommendation. Investors should take into account that the cryptocurrency market is very risky, and they make their investments at their own peril and risk.

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