# Bear Market Survival Guide

By [ Crypto.Fanatics](https://paragraph.com/@141545) · 2022-03-10

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Real wealth is created in bear markets, but in addition to "buy the dip".

Defense wins championships.

![](https://storage.googleapis.com/papyrus_images/0ac11e987600a1689c19a47888c4221533c7bf63ea6a5d53a46ecaf4b189e6e0.png)

### Bear Market Portfolio Template

Figure out your portfolio first: stablecoins, low-risk, medium-risk, and high-risk cryptocurrencies.

Then decide what coins to take.

![Not financial advice](https://storage.googleapis.com/papyrus_images/712f175f3fb51fe3ebc0bf9f370b9cfa9a877a77c52ab1f6efb80fd007256f30.png)

Not financial advice

Public chain projects - they have the best risk to reward ratio right now.

**Stay away from high-risk cryptocurrencies for now.**

### Why should I hold a stablecoin?

Holding a percentage of stablecoins is designed to reduce the volatility of your portfolio and help preserve your principal.

### Of course, stablecoins are not completely risk-free.

Algorithmically stable coins may be decoupled.

USDC / DAI / USDT are centralized and the government may freeze them.

Therefore, it is important to diversify your stablecoin holdings for risk-averse reasons.

Of course, it is possible to hold fiat currency. However, holding fiat currency is actually a risk due to inflation. You are better off choosing the right position allocation for your situation.

### When do you start buy dip?

Don't try to take advantage of every downward market opportunity.

Try dollar cost averaging (fixed investment): instead of buying $1k of ETH today, you can buy $167 worth of ETH on the 1st of each month for the next 6 months, do not underestimate this method.

![](https://storage.googleapis.com/papyrus_images/6500f311ac6444bfeaf7cc92f89552d60bf036e4e40ec1cb6389ab0dfefc4039.png)

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*Originally published on [ Crypto.Fanatics](https://paragraph.com/@141545/bear-market-survival-guide)*