More retailers are beginning to accept cryptocurrency as payment during periods when cryptocurrency values are growing and the cryptosphere is thriving, in the hopes of attracting more consumers and increasing earnings. With the significant reductions in cryptocurrency rates, though, comes dread and apprehension about whether the game is worth the candle. In this article, we’ll look at why taking crypto during a bear market is worthwhile, as well as how to do it with NOWPayments.
What is a crypto bearish market?
When assets drop more than 20% of their value from previous highs, the market is considered bearish. There is panic in the market right now; trading volumes are surging, the fear index is rising, and volatility is at an all-time high. All of this resembles a vicious spiral, as herd behavior, investor panic, and mass asset sales all contribute to greater price declines.
So, in 2021, for example, we saw a positive market, with Bitcoin seeing record growth and updating its “all-time high” twice. The coin was worth $29,300 at the start of 2021, and by mid-April, it had risen to $64,800. Following that, Bitcoin entered a bearish trend, with the price returning to $29,800 by mid-June. The similar event happened in November 2021, when the coin hit a high of $68,789 before rapidly falling. Bitcoin was recently going for around $40,000. This occurs frequently, indicating the market’s cyclical character, for example:
BTC’s price decreased from $1200 to $200 in 2014.
The price reduced from $20,000 to $3,000 in 2018.
BTC’s price dropped from $9,000 to $4,500 in March 2020.
Whenever it appears to investors that “Well, that’s it, the crypto bubble has burst,” they sell their assets in large quantities. However, the price of Bitcoin is modified on a regular basis, and it continues to set new records.
In this situation, we used Bitcoin as an example because it is a market indication and guidance. When the price of Bitcoin declines, the price of all other cryptocurrencies falls with it, and vice versa.
Why should I receive cryptocurrency payments during a bearish market?
Previously, we looked at how the price of Bitcoin fluctuated over time and provided real evidence to support the market’s cyclical nature. The fact that prices will eventually climb again is the key argument for not refusing to accept bitcoin payments (most often with a new force).
“Buy the dip,” as traders say, is a fantastic time to enter the market during such downturns. When you accept crypto during a negative market, your profit will practically expand in front of your eyes as the price rises. And it’s up to you to decide what to do with the money you’ve made. Buying new equipment, promoting your brand, hiring new personnel, enhancing product quality, and so on are just some of the ways an entrepreneur might spend the money he made so effortlessly.
In addition to the aforementioned, bitcoin can be a great way to generate passive income. There are currently a number of services that allow you to stake cryptocurrency, such as Binance Earn. As a result, you can earn an annual percentage yield that is several times larger than what banks give.
Stablecoins can still be accepted in the end. Accepting stablecoins removes the risk of losing money due to market volatility. Stablecoins, on the other hand, offer all of the characteristics that people love in cryptocurrencies: speed and low cost of international transactions, security, and convenience.