Of course, we have fooled you a little with this title, because in principle no cryptocurrency is resistant to bear markets. Even the big one bitcoins it has already lost more than 70 percent since its November 2021 all-time high. This does not alter the fact that there are some coins that will most likely always outperform others in tough times.
What cryptocurrencies are they?
In principle, it can be argued that the higher the market capitalization, or market capitalization, of a currency, the greater its resistance to bear markets. A larger market capitalization often means more liquidity, which means that, for example, the price of BTC corrects relatively less during bear markets than the price of a piccolo altcoins. If you want to hedge against potential bear markets, it’s important to be in the largest currencies as much as possible.
- bitcoins
Even after a full 13 years, bitcoin is still the king of the market and ethereum needs to double the market capitalization to catch up with bitcoin. It should therefore come as no surprise that Bitcoin often outperforms all other currencies during bear markets. Only in stable coins you’re safer, but it’s obviously not a real investment. Unless you choose to run your stablecoins on major exchanges. - Ethereum
In addition, bitcoin is also allowed ethereum increasingly qualifying as a currency resilient to bear markets. After the move to Proof-of-Stake, institutional audiences are also increasingly targeting ether. This can be seen, among other things, in the fact that Fidelity is abandoning its bitcoin-only policy and will soon also offer ether to its institutional clientele. - stable coins
In this bear market, stablecoins have proven to be the best means of defending against a crypto winter. This in itself isn’t surprising, as you’re obviously on fiat money and if prices go down, then that’s the best place to hide. What’s particularly cool is that you can also collect interest on these stablecoins on exchanges like Binance.
You will receive approximately the first $1,000 of Binance USD (BUSD) and Tether USD (USDT) at Binance for example, the interest of 8% on an annual basis. After the first $1,000, that percentage already drops to 0.8 percent, but it’s still a decent yield. Of course there is a risk, but in the bear market it can certainly be interesting.
