 All the hype has died down on your favorite projects and your bags are down over 70 to 90% from all-time highs. And you're constantly seeing YouTubers or people on crypto Twitter calling for the Bitcoin bottoms only to see prices drop even lower. I'm here to tell you that even though I can't tell you the future, I am a two-time survivor of the crypto winter. And what I can tell you is some of the mistakes that you will want to avoid over the next few months. Make sure to watch till the end for one of the most overlooked mistakes. Let's go ahead and dive right into today's video. Hey, what's up guys? I am Jay and welcome to Bitcoin Daily. The goal of this channel is to empower you guys, the community with the knowledge and resources to help you get to that next level. So make sure if you guys enjoyed this video to smash that like, smash that subscribe. And if you have any questions about anything we covered today, drop it in the comments. Let's dive into it. So five mistakes to avoid during a bare market guys. Let's jump into the first mistake that you must avoid. It should come as no surprise that one of the biggest mistakes that I see people make all the time is panic selling. Panic selling is the act of selling due to fear of losing money. It is also oftentimes an overreaction to some type of news or volatility. The issue with panic selling without an analysis is that if the prices go back up, then because you sold, you now have no way to regain those losses. So let's talk about a few ways to avoid being caught in the trap of panic selling. First off, and this should go without saying, but you should only be investing money that you don't need right away. If you invest money that you can't afford to lose, then you will probably panic sell at the first sight of uncertainty, fear or doubt. Whether you need the money to pay rent by food or pay for other bills, you should never be risking that money. And I know it's easier to say than to do, but you need to not be emotionally attached to that money that you're investing. As you can see as proof on this chart that the longer you hold your crypto, the more likely it is for you to sell at a higher price than what you bought in for, which brings us to our next point. You need to keep a long term perspective. For example, don't be like Greg. Greg bought Bitcoin back in 2011. He had 1700 Bitcoin that he bought at six cents and then he sold them at 30 cents. Back in 2011, he was complaining that he sold Bitcoin at 30 cents while Bitcoin was at eight dollars. If we do some quick maths, 1700 Bitcoin times its current price at $23,000 is $39.1 million. Let's say just for fun that he sold at the all-time high, that would have been $117.3 million. So the lesson here is don't be like Greg and have such a short timeframe perspective. Keep a long timeframe perspective. If you don't think that the project you're investing in will be here in the next five to 10 years, then you probably shouldn't be investing in it. Let's take a look at the average Bitcoin price every single year since its inception. Starting off in 2010, you can see that the average price was around 10 cents, then a dollar, $10, $100, $1,000. 2015 we had a bear market went back down to 500, 2016, 900, 2017 up to 15,000 as the average price. Back down in 2018 at $8,000, a little bit higher, 2019 at 10,000 and 2020 at 9,000. The average price of 2021 was $40,000 and this year I wouldn't be surprised if it's somewhere around $30,000. After that, I'm expecting it to go up to maybe $50,000, $70,000 and eventually a average price of $100,000. Now I'm not saying to never sell and I'm also not saying to never take profits, which takes us to our next reason on how to avoid panic selling, have a plan. I always tell people when investing into something, have a plan of where you're exiting, whether you're right or wrong. As prices go up, you should always be taking profits. As prices go down, that could be opportunities to grab those profits that you took and add them back into your position. I, for example, like to take profits anytime we set up new all-time highs. So during the recent bull run, I took profits around here, which was above that $20,000 mark, took profits around here, which was at $30,000 mark, and again around here, which was a $40,000 mark. You'll notice that I'm taking profits usually at big whole numbers. 50,000 again for me was a phenomenal and really big whole number that I probably took the most amount of profits at. And then above 60,000 when I saw we were kind of in this range, I again took some profits around that $60,000 area. Now the way I take profits is more of a dynamic method. There's no rule of thumb of I'm taking exactly 10% here. It's more based on my knowledge and experience of the markets. Knowing the history of Bitcoin's price and how it reacts every time there's a halving, I knew not to take a lot of profits in the beginning. So in the beginning, I tried to hold about 5% of my entire portfolio in cash. So as prices went up, that means the value of my portfolio went up. And then I took the profits to just have 5% for example, of my entire portfolio in cash. Once we hit 50,000, then I decided to double it up to 10% of my portfolio being in cash. And I basically kept doing that every time I took profits, keeping at least 10% of my entire portfolio in cash. I actually put some of that cash back into a Bitcoin here. Because this was the first big pullback of the bull run, I wasn't afraid to put more of that cash in. So since I was keeping around 10% of my portfolio in cash, I put around 5% on it. Dollar cost averaged it in throughout this period of time. As prices went back up to 50,000, again took some profits. 60,000, again took some profits. And again, as we were hitting new all-time highs, I continued to take profits, building back my 10% cash position in Bitcoin. Now I never go 100% into cash. I always tend to keep some skin in the game. As prices dropped back down, I had two areas where I was going to take some of the money out. Again, I used the big hole numbers to take the money out. So that first big hole number was of course 60,000 on the way back down from my all-time high. The second big hole number was 50,000 and the final big hole number for me was $40,000. So the same way I like to dollar cost average my way in, I also like to dollar cost average my way out. And I always leave at least 25% of my portfolio invested. Now I say all this not to tell you guys that this is how you should do it or it's the correct way to do it, but to show you guys that I had a plan and I executed my plan. Now if this is too advanced for you, it might be easier to just buy when prices are low and just let it ride. As we have seen in the market over the long-term, Bitcoin's price always tends to appreciate. But whatever it is that you decide to do, just make sure to make that plan and stick to it. It'll make your life a whole lot easier when volatility strikes. The next mistake that you need to avoid at all costs is don't try to guess the bottom. Almost everyone and their mothers that is involved in crypto thinks that they can call the bottom. And it is a tell as old as time. There are two errors that people make usually with these situations. In one hand you have the people that always think Bitcoin has more room to go down. So what happens, they don't buy. And then there's the people on the other hand that think that every dip is the bottom and then it goes lower. The funny thing is that both make critical mistakes whether you're bearish or bullish because you're trying to time the bottom and nobody can do it. Nobody knows what's going to happen in the future. Those always saying that Bitcoin has more room to go down usually end up even having to buy up a lot higher or just not buying at all. Because even if the price does drop, usually they'll be like, oh it still has another leg down. So they're just overly bearish. Same thing with people that buy the dip. They think that's it. This is as low as Bitcoin can go and then it drops further down. You have to try to see both perspectives and be as balanced as possible. Imagine back in March of 2020 when we had this drop right here. Bitcoin went under $4,000. Imagine not buying at that price because you thought that Bitcoin was going to go down even lower. And then imagine seeing the price over the next year go up over 1,100%. Remember guys, nobody can predict the future because of this time in the market is greater than timing the market. So if we can't predict the future, if we can't time the markets, if we don't want to be overly bearish or overly bullish, what's the best way to enter into a position? DCA, dollar cost average. Dollar cost averaging is one of the best strategies that you can do when buying a dip, when buying during a bear market, when buying during a crash. You don't want to dump in a lump sum at one price point because if it continues lower, now you're down a bunch of money and you have a bad entry. But if you just average in your entry, if you buy at that dip, you buy the next dip, you buy the dip after that, now your average entry is way better than the lump sum. The same thing with those thinking that Bitcoin has more room to go down. If you sit around waiting for Bitcoin to drop down to your very specific level, more times than not, you're probably going to end up sitting on the sidelines and missing out on big, big gain. So instead of trying to wait for your perfect number that you swear to God, Bitcoin is going to hit, just start daughter cost averaging your way into a position. And if that number that you were waiting for does hit, you can average in more than the previous entries. Stop trading against the trend. Not sure to tell in which direction the trend is. Open up your chart, go to indicators, type in moving average, set your moving average length to 200 and hit okay. Go back to your indicators and open up a second moving average on this one. You're going to set it to 50 and hit okay. So when the 50 day moving average is above the 200 day moving average, that means that the trend is going up when the 50 day moving average is below the 200 day moving average. That means that the trend is heading down. You can see here from May of 2020, all the way till about June of 2021, Bitcoin was in an uptrend. And although these flipped a few times as of January of 2022, Bitcoin's price has been in a downtrend. So if you're looking to take trades throughout a bull or bear market, you should always be trading with the overall trend. Always remember that the trend is your friend. It will make life a whole lot easier for you because you're going for the low hanging fruits instead of the fruits at the top of the tree. Trading in itself is already hard enough. Why make it more difficult for yourself? There's a reason why a bunch of people have become millionaires for being trend traders. I myself love trading with the trend. The next big mistake to avoid during a bear market is marrying your bag. While you should avoid panic selling, this does not mean that you should never sell. Realizing that you made a mistake and a bad investment is always a good reason to sell. A lot of people end up marrying their bags, meaning that they form an emotional attachment to their investment. And all reason and logic goes out the window even when the narrative behind it fails. This is something that happened a lot back in 2017-18 during the ICO boom. Many investors got an early, made crazy amount of ROI, but never realized those returns because they were chasing even higher returns. Later on, when everything crashed, they still didn't sell because they were convinced that prices would go back to their previous all-time highs. A lot of those projects ended up failing and didn't survive to the next boring. So remember to always make a plan with every investment and stick to that plan. Do not be afraid to cut your losses and move on. The last and final mistake that is probably overlooked the most in investing in trading is ignoring your mental health. No amount of money is worth sacrificing your mental health and well-being. Do not ignore your mental health guys. It can be tough especially if you've over-invested, oversized to see the value of something dropping harder and harder. Especially in cryptocurrency where there's extreme volatility in both directions. Think about the reasons why you're invested in the projects in the first place. This is why I always recommend investing with a long-term perspective and into top 25 projects. Do your own research on your investments. Don't just listen to people like me and other YouTubers or people on Twitter. And if you have to, take a break. There's nothing wrong with taking a break. During the 2018 bear market, I literally deleted every app that followed or showed me either my portfolio's value or the prices of crypto. I did not want to see them. It wasn't probably until around April when things started looking up again that I finally downloaded all these apps back again. This helped me not exhaust myself mentally by checking the prices every single day, every single hour. It is mentally draining to do that. Trust me. I know. If you have a plan, if you believe in the project, stick to it. Don't look at it every single day. You're thinking in terms of the next bull run which could be one, two, three years out. Don't forget that there's more to life than just crypto and investing. If you give it some time, Bitcoin has always proven that it will appreciate and reward those who held through its turbulent times. If you guys have any serious issues, any someone to vent to or talk to, feel free to reach out to me either within these comments over on Twitter or even on Instagram. I recently put out a few videos on my YouTube channel. This one from last week where I showed you guys five Bitcoin bottom signals that have never been wrong when calling the bottom price for Bitcoin. And I also did this video a month ago showing you guys exactly how to get rich in crypto, the realistic version. In this video, I showed you the exact projects that I am buying, the exact way that I am structuring my portfolio and why the riches are made during bear markets, not during bull markets. If you guys are more interested in more one-on-one mentorship type of thing, I do have a mentorship group where I share all my trades, how to do it the right way. Link to that is in the description below. Thank you guys so much for watching this video. I will see you on the next one. As always, peace and love.