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The terms “bear” and “bull market” are frequently used to point out market conditions. Most investors are familiar with this, in order to understand whether the markets are depreciating or appreciating in value. In cryptocurrency, the speculative nature makes the market especially prone to bear and bull behaviour.
So, what do those terms mean?
Bear Market
In the stock market, a bear market is a condition that can develop over months (for example when market drops 10–20% over the period of 2–3 months). however, in cryptocurrency, the same variation can occur within a day! When the markets trajectory is downwards over some period of time and investors think that the value of digital currencies is going to continue decreasing, then the market is seen to be in bear mode.
Bull Market
As the opposite of the bear market, the cryptocurrency market is said to be experiencing bullish conditions when prices keep going up. It’s safe to say that since the beginning of 2021, we are all enjoying a mostly bullish market with prices steadily increasing. More and more people are joining the cryptocurrency movement, assuming they can make profits from the market.
Why They Called Bull & Bear Markets
Of course, cryptocurrency investment is risky, yet the phrase “high risks, high returns” can be applied here. Make sure you are doing your own research (DYOR) and learn the art of money management. Never, ever, invest money you aren’t willing to lose. Strong investor mentality should be possessed as your portfolios can go up and down every second like a rollercoaster, and that’s quite a ride!
Role of Stable coins in the Cryptocurrency Market
As we are all on a figurative rollercoaster, we can still try to have more stability during the ride. Stable coins protect us from suffering price volatility, by complementing crypto features with the stability of established fiat currencies. It is the perfect fit for the cryptocurrency market, where people can quickly take profits, stop losses, and save their money.
Stable coins act as the bridge between the volatile nature of cryptocurrency and the mainstream world of fiat. These kinds of coins serve as non-volatile blockchain-powered digital assets that include the benefits of crypto and fiat currency combined.
WadzPay are aiming to provide both prominent crypto tokens, as well as beneficial Stable coins, in order to create mass adoption with highly efficient crypto payments.
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Not investment advice.