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May 24 • 24 tweets • 13 min read
20 Tips to Survive the Crypto Bear Market:
Last week, I asked OGs for advice on how to survive the bear market.

I curated my favorites (out of 1300+)

Some of the pieces of advice contradict each other.

I want to show you different perspectives to help you build your own investment theses.

/1 Develop a Skill

@Darrenlautf recommends learning to code.

He runs a job board and sees that 90% of the demand is for developers.

Learn and Build - don't just sit around waiting for the next few years

It's 2022, and you can learn for free online

@Darrenlautf /2 Don't Compare Directly to 2018

Most projects during 2018 were scams and white papers.

The protocols now are much more mature.

There's > $140b locked up in DeFi, and some protocols are generating millions.

@Darrenlautf /3 Prepare for Financial Collapse?

Most of us are young and have never been through a macro environment this bad before.

Inflation's at a 40-year high.

Do you have a plan if we're going into financial collapse?

Things can turn much worse.

@Darrenlautf /4 Most Coins Will Never Hit ATHs Again

Projects run out of funding.

Developers get bored and disappear.

Or new projects come and take the shine away from your bags.

Most 2017 coins never recovered to their ATHs.

@Darrenlautf /5 Maybe You Shouldn't Sell Your Bags

This depends on which projects you're invested in.

I held my BNB / VeChain bags through 2018 Crypto Winter, and they eventually 🚀.

Warning: Sunk cost bias, Survivorship bias, Anecdotal evidence. Still mooned.

@Darrenlautf /6 Adjust Your Theses

Every cycle has its darlings

• 2017: EOS, NEO, XRP
• 2020: DeFi 1.0 Protocols

They do well in their main cycles but fail to keep up the momentum in the later cycles.

The metagame changes or they get out-innovated.

@Darrenlautf /7 Pay Attention to the Builders

Who's still shipping and iterating their products?

Who's still engaging with their community?

@Darrenlautf /8 Invest In Your Health and Friendships

You probably sacrificed a lot during the bull cycle.

Some things are more important than money such as relationships and health.

Use this period as a chance to strengthen those areas.

@Darrenlautf /9 Don't Over Estimate Huge APRs

We tend to overestimate large APRs coming from inflationary tokens.

The 200% APR doesn't matter if the token's value drops by 95%.

Open a spreadsheet and play with different scenarios.

@Darrenlautf /10 Improve Your Investing Formula

Whether you realize it or not, you have an investing algorithm in your head.

Sit down and reflect. Write down your rules and principles.

Be real with yourself, or you'll make the same mistakes in the next cycle.

@Darrenlautf /11 Survival First

Lower and cut all your expenses.

You don't need 5 different streaming services.

My friend is using this opportunity to become a digital nomad and live in cheaper countries.

@Darrenlautf /12 Wait Before Buying

Rabbit recommends waiting a year before buying Crypto. They believe it can take a while before we hit the bottom.

Others believe in not trying to time the bottom, and just buying every month (dollar cost average)

@Darrenlautf /13 Prepare for New Metas

The next cycle's most valuable protocols might not even be in existence yet.

You'll be late to them if you lose interest in the markets now.

Get in early and make sure to take profits.

@Darrenlautf /14 Don't Fight the Fed

Right now Crypto's tied to the Fed's monetary policy.

🏦 Printer go brrrrrrr = 🐂
🏦 Printer turns off = 🐻

Pay attention to how the Fed's fighting inflation and controlling the money supply.

Don't fight against it.

@Darrenlautf /15 Find a Hobby

It pays to be patient.

In the meantime, go out and enjoy life.

I'll be doing a lot of traveling and actually looking to pick up rock climbing.

What hobbies are you going to pick up?

@Darrenlautf /16 Build an Extra Income Stream

More money coming in means more dry powder to buy the dips.

@Darrenlautf /17 Don't Try to Beat the Market

I'm sure some people will try to trade the market via margin trading or shorting.

Don't - easy to get wrecked.

Most people should dollar-cost average into blue chips.

@Darrenlautf /18 Sales Everywhere

If it's a great project, then you're able to buy it now at a discount.

The key is predicting which ones can survive the bear market and reach ATHs again.

That's hard - most people should stick to buying BTC / ETH.

@Darrenlautf /19 Which Projects Will Last?

Bet on the ones that solve real problems in a way that their competitors can't.

Bear markets feel horrible, but they're healthy for the ecosystem.

They shed off all the dead weight.

@Darrenlautf /20 Beat ETH / BTC

Your goal should be to outperform ETH and BTC as an investor.

So measure your portfolio in those rather than USD.

If you don't think you can, then it's easier just to buy ETC / BTC and save yourself all the stress.

@Darrenlautf That's it for today.

Thanks to everyone who contributed to the original tweet.

Follow me @thedefiedge for more information like this.

Like/Retweet the first tweet below to help your frens survive this bear cycle:
@Darrenlautf Also, I write a free weekly newsletter.

Subscribe below and get the next issue on Thursday.

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