Crypto markets can feel like a rollercoaster ride. Many think these cycles are influenced by BTC halvings while some think that influence is waning. What we know for sure is that markets are all about cycles, and bear markets are inevitable.
In fact, bear markets are useful for industry development. It’s what separates the serious long-term builders from the short-term speculators.
Anyone who’s joined the crypto space in the past 2-3 years might feel a little bit down or worried about the prospects of the industry. However when you check in with people who have been involved with the industry for 5-10 years, they’re absolutely chill and just focused on building. In fact they yearn for the quietness of bear markets to build in peace.
This is why bear markets are the best time to seek advice from OGs in the crypto space. In this article, we talk to the founder of tr3butor Max Uper and several other Web3 OGs, some of which have been involved in the space since 2011.
This article focuses on how Web3 talent or contributors can weather bear markets in crypto cycles. In the next piece, we'll share the founders’ experience on how to make your startup survive and grow during the bear market. Make sure to follow us to not miss it!
Keep BUIDLing
“Don't trade or look at the charts. Just build, hustle and raise.”
Ivan, Crypto OG since 2011 & Founder of LotsofLands
If you talk to the OGs, they’ll say bear markets are often a blessing in disguise. Things get quieter and the builders keep building.
This is usually when the best products get launched and teams that are able to manage their treasuries responsibly survive.
Products that can prove use cases and market fit during bear markets ultimately thrive in the long-term.
It was only through a bear market that great products like Compound or Aave emerged, which then led to a DeFi revolution that triggered the next bull cycle.
According to the CTO of pyrpose and former team lead at CEX.io Oleg Kudrenko, it’s best to remove the expectation that markets will reverse anytime soon, then build your strategies based on that.
Community is your lifeboat
Even the most experienced investors are affected by downward price trajectories. Bear markets can be a challenge for anyone's mental health.
It may sound easy to just “keep your head up and stay positive”, but it’s actually easier to fall back on your friends or community when the going gets tough.
When you join communities or surround yourself with like-minded folks, you won’t feel so isolated. Friends can help you weather the bear market better.
Bear markets are also a great time to build new relationships which you can carry into future endeavors.
Andriy Velykyy, co-founder and CEO of Allbridge, recommends to “educate yourself and look for like-minded people. When the bear market will pass, together you will launch a unicorn into space.”
The simple act of joining a Discord and attending various events or conferences will set you on your way to surround yourself with more friends. You can start by checking out the list of crypto / Web3 events maintained by tr3butor.
Pick an extreme path
Sometimes extreme situations require extreme measures. Either take a very conservative or very radical path. This may sound controversial but could prove to be the most rewarding approach to coping with the bear market.
The conservative path is to simply join a very well established company to weather the storm.
The radical path is to join a team that is working on a crazy, high-potential project - a moonshot that’s led by a bunch of crazy developers that you can barely understand. It won’t be the smoothest ride through the bear phase, but you’ll be sufficiently distracted building something disruptive where your potential returns could go through the roof in the next bull run.
Alternatively, you could also choose to balance both the conservative and radical path by joining a well established company on a full time basis while contributing to the crazy moonshot project on the side.
Focus on financial resilience
One of the first things you need to do is start stocking up on instant noodles and cut down the flights on the private jet. Just kidding:)
Instant noodles and private jets do sound extreme, but the point is really about keeping a tab on any extravagant expenses and trying to cut down where you can. The more fuel you can conserve during the bear cycle, the more runway you’ll have to set yourself up for the bull.
Andriy says it clearly: “Analyze your expenditures: drinking champagne on the New York Rooftops may not be a good idea, instead go for a beer at the beach.”
Try to avoid getting stuck in illiquid assets (NFTs, shitcoins, etc) and build a steady income stream that isn't reliant on market conditions. If you have excess capital set aside, you’ll be able to invest in assets at a severe discount during the bear phase.
In the bear market, founder of CryptoAlco Nike Long holds onto the wise saying “this too shall pass” and offers this advice:
“As in the real world, in the crypto world, the main goal is to survive. Save your funds. Take care of your project. Survivors of past crypto winters have been generously rewarded by the market for having endurance. The industry is growing and evolving, so there is a non-zero chance that you will be rewarded again in the future. Just survive.”
Get that alpha
Web3 can be a little bit like the Wild West. Ok, ok, so it is the Wild West. To survive even in a bull market, you’ll need to learn how to duck the random rugpull bullets and stash your ammo safely, all while making the right friends at the bar.
Bear markets are the best times to try out and experiment with Web3 projects. With less noise and low hype, you’ll be able to take your time to investigate which projects have their act together and are truly building, plus gas is cheap so you can test out transactions to your heart’s desire.
Trying or testing different projects can be rewarding. For example you could get airdrops like the ENS airdrop just from registering an ENS domain early. That $25 domain purchase led to thousands of dollars for the early adopters.
In the previous cycle, tr3butor founder Max Uper kept actively participating in the space, but also built on the side a Web2 recruitment business (Make It In Ukraine) to have 'delta-neutral' income. When DeFi summer happened, his company started working with Web3 clients, which led to scaling the agency business almost 2x in 2021. This also helped him get unrivaled expertise in Web3 HR and became the foundation for tr3butor.
Take advantage of the discounts in the bear market to invest in projects run by friends that can deliver, or try to gain access to other projects with high potential that are looking for funding. For example, Max has always kept investing, learning and researching about new projects in order to prepare for the next bull run.
Who knows? While you DYOR, you may also stumble into other opportunities to contribute during the bear phase.
Wise time management
Time is money, and you’re wasting good money if you’re not using your time properly. Instead of staring at the charts going red and fretting, focus on making use of this downtime to upgrade yourself.
Educate yourself on new topics like zkRollups or Layer2s. We’re still early, which means that the space is constantly evolving and you don’t want to miss out on the next meta.
If you’re feeling like taking a break from crypto, then do so. Build some new skills such as copywriting, on-chain analytics, game theory or take a short sabbatical, cultivate some good habits or find a hobby that you enjoy.
Andriy suggests that taking up sports, eating healthy, spending time with loved ones and reading some good books can help avoid getting depressed or burned out.
Positivity sparks change
Many of us fall into the trap: You get into bed, turn off the lights, check Twitter one more time and get sucked into the bottomless scrolling of doom-and-gloom news reporting on the crypto crash and its impact.
If you catch yourself spiraling down the vicious cycle of negative thinking, take a deep breath and do what you can to snap out of it, because doom thinking can get you REKT.
Staying positive in a negative environment will definitely test your mental strength. However, it’s well worth the effort, because positivity keeps you resilient and resilience can take you to where you want to go and perhaps even bring others along as well.
Don't be naive, don't be cynical – be realistic. But keeping a positive attitude and supporting others gives you ultimate superpower that helps you and your folks to go through any obstacles.
Some sound advice from Andriy: “Do not panic, do not listen to those who shout that crypto is all over. There is a cyclic pattern - now we fall, then we will rise.”
Also as Nike puts it: “There are destructive people everywhere. The main thing is to know your answer to the question “why am I in crypto?”.
tr3butor is your friend
tr3butor wants to see you thrive in good and bad times. We hope the advice compiled above can help set you off in the right direction and keep you warm during the crypto winter.
Our mission is to build a community-owned talent platform aimed at helping you sail through the ocean of opportunities in Web3 and earn crypto sharing jobs with frens and followers.
Early testers of tr3butor’s Share & Earn and Refer & Earn stand a strong chance to get a guaranteed spot for the Genesis NFT mint.
tr3butor’s Genesis NFT is all about rewarding our earliest and strongest supporters who want to ensure this community has long-term success. They see tr3butor as a reliable oasis for Web3 opportunities.
You don’t need to feel like you’re going through this all by yourself. One of the easiest things you can do right now to change things for the better is to join our community. Hop into our Discord and let's talk about how we can help you.
How to get involved with tr3butor
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