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Mental Health Strategies for Bear Market Survival

High stress and financial uncertainty can have massive effects on the mental health of crypto traders. Quite possibly even more so with the day trader, who may already have a higher than average stress level.

Today, let’s focus on creating and implementing strategies that help the cryptocurrency trader and day trader mentally survive a bear market without becoming overcome by the increased uncertainty and stress.

mental_health_strategies_for_trading_crypto_bear_marketsMental Health Strategies for Crypto Bear Markets

But before we start: If you are feeling something more serious than mild anxiety or depression, or you feel like you may want to hurt yourself, please reach out immediately to a hotline and let someone in your family or circle of friends know that you are in a crisis.

Summary of Mental Health Strategies for Bear Markets




  • Control our emotions
  • Get help immediately if needed
  • Zoom out
  • Remind ourselves why
  • Adjust our mindset
  • Value community ties
  • Use relaxation techniques
  • Practice self-improvement


Control our emotions

Easier said than done, emotional control is a vital element in a trader’s mental health. Here’s how some traders handle their emotions:

  • Spending less time looking at your portfolio can help some traders feel less depressed.
  • Others try to automate their trades according to an investment plan they designed to help manage their level of anxiety.
  • Time away from the trading desk and out exercising in nature has known positive effects on the person’s emotional health.

“The most important lesson an investor can learn is to be dispassionate when confronted by unexpected and unfavorable outcomes.” - Peter Bernstein

Zoom out

Even the worst crypto bear markets can be viewed in a positive lens when zoomed out for the long-term. Bitcoin advocates like Michael Saylor, Anthony Pompliano and Lyn Alden share an understanding that over time, Bitcoin just gets stronger and more valuable, regardless of its historical price volatility. Zoom out to see where we really are heading.

Remind ourselves why

Take a moment to think about your current situation and try to remember exactly why you entered crypto markets in the first place to help put things in perspective.

  • Did you ditch your 9-5 and jump right in?
  • What obstacles did you overcome to gain all the knowledge about crypto that you have internalized?
  • Have you learned about amazingly innovative crypto applications and tested them out?
  • Are you part of the revolutionary transformation to decentralized, open finance?
  • How many bear markets have you survived and what did you learn?

Last of all, remind yourself that every bear market has bounced back and become a bull market. It’s only a matter of time.

Adjust our mindset

In the midst of financial mayhem, it’s helpful to remember that financial assets are not the only good things in life. There are many other qualities. However important money is, it is not the end all be all. Try to find time each day to remember the things you are grateful for, such as:

  • A beautiful planet to live on
  • Your loved ones
  • Your home
  • Freedom to travel
  • Connections in crypto communities
  • Your portfolio of work
  • Your participation in an epic technological revolution

“The malady of commercial crisis is not, in essence, a matter of the purse but of the mind.” - John Stuart Mill

Value community ties

The global crypto community welcomes people from every walk of life and every corner of our world. Not only that, but we are all here for one reason - to create this world where cryptocurrencies enable anyone to access sound money.

  • Find time to participate during the bear market by joining a Twitter Spaces meetup about Bitcoin.
  • Join a new Discord server focused on one of your favorite projects.
  • Try to add to your community network so that everyone can learn from each other and survive the bear together.

“Surround yourself with people trying to shape the future.” - Cathie Wood

Use relaxation techniques

Deep breathing, meditation and yoga all help you to relax, control emotions, and be more resilient to stress and anxiety. Luckily, they are all easy to do from almost anywhere - even from your trading desk!

Relaxation techniques are proven to reduce blood pressure, ease chronic stress, and reduce stress-related insomnia. All of these benefits also help you think more clearly, which will help you manage your way out of the bear market.

Simple daily meditation for traders:

  • Find a quiet place to sit alone comfortably
  • Close your eyes
  • Breathe in through your nose
  • Breathe out through your mouth
  • Keep your focus on your breathing
  • Continue for 3-5 minutes

Practice self-improvement

Bear markets may be quieter than bulls, but this gives traders a chance to up their game. Sometimes working on solutions is the best way to see your way through a tough situation.

The self-improvement examples below will give you confidence while taking your mind off the charts, so in the next bear market, you’ll have even more emotional resilience and knowledge.

These 3 tips not only set you up for better trading, but they’ll lessen the mental effects of the next big downward trend.

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Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.

Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.