During periods when the prices of cryptocurrencies are rising and the cryptosphere is flourishing, more and more merchants are starting to accept crypto for payment, hoping to attract more customers and increase profits. But with the sharp drops in the rates of cryptocurrencies comes fear and apprehension if the game is worth the candle. In this article we will consider why it is worth accepting crypto during a bearish market and how to do it with NOWPayments.
Key Points:
- A bearish market is a state of the market when the price of most crypto assets is aimed at a decline.
- By accepting crypto for payment during a bearish market, you can get some benefits.
- NOWPayments provides an opportunity to accept cryptocurrencies (including stablecoins) for payment.
What is a bearish market?
A bearish market is when assets lose more than 20% in value from previous highs. There is a panic in the market at this time, trading volumes are increasing, the fear index and volatility are off the scale. All this resembles a vicious circle, because herd instinct, fear of investors, and the mass sale of assets contribute to a further decline in prices.
So, for example, in 2021, we witnessed a bullish market, when Bitcoin had record growth and twice updated it’s “all-time high”. At the beginning of 2021, the coin was trading at $29,300, and in mid-April its price reached $64,800. After that, Bitcoin entered a bearish trend and by mid-June the price returned to $29,800. The same thing happened in November 2021, when the coin reached a record $68,789, after which it began to fall rapidly. Recently, Bitcoin was trading around $40,000. This happens all the time, which indicates the cyclical nature of the market, for example:
- In 2014, the price of BTC dropped from $1200 to $200.
- In 2018, the price dropped from $20,000 to $3,000.
- In March 2020, the price of BTC fell from $9,000 to $4,500.
Every time it seems to investors that “Well, that’s it, the crypto bubble has burst” and they massively sell assets. But every time, the price of Bitcoin is adjusted and each time it breaks new records.
In this case, we have considered Bitcoin, because it is a kind of indicator and guide of the market. If the price of Bitcoin falls, then the prices of other cryptocurrencies also fall, and vice versa.
Why should I receive cryptocurrency payments during a bearish market?
Earlier, we looked at how the price of Bitcoin rose and fell throughout its existence and gave concrete examples confirming the cyclical nature of the market. So, the main reason not to refuse to accept crypto payments is the realization that sooner or later prices will rise again (most often with a new force).
Such downturns are a great moment to enter the market, as traders say “Buy the dip”. By accepting crypto during a bearish market, your profit will literally grow before your eyes when the price turns around and soars. And what to do with this profit is up to you. Purchasing new equipment, brand promotion, hiring new employees, improving product quality, and so on, this is only part of what an entrepreneur can spend the profit that came to him so easily.
In addition to the above, cryptocurrency can be an excellent tool for passive income. To date, there are various platforms that allow you to place cryptocurrency in staking, for example, Binance Earn. So you can get an annual percentage yield, the rates of which are several times higher than those offered by banks.
Ultimately, you can still accept stablecoins. Accepting stablecoins completely eliminates the possibility of losing funds due to volatility. At the same time, stablecoins have all those features for which cryptocurrencies are valued: speed and cheapness of international transactions, security, and convenience.
NOWPayments
With NOWPayments, you can easily start accepting Bitcoin, Ethereum, and more than 100 other popular cryptocurrencies for payment. Our service is the leading crypto payment gateway on the market. We provide the lowest fees, technical support, a wide range of cryptocurrencies, as well as convenient payment tools. Accept crypto for payment via plugins, APIs, invoices, or contact us and we will find a solution that is suitable for you.
Conclusion
In this article, we have considered what a bearish market is and why you should not be afraid to accept crypto for payment during a bearish market. The main thing to remember is that the price movement is cyclical and after a fall, a rise is sure to follow. With NOWPayments, you can easily start accepting crypto for payment, and also (if you are still afraid of crypto volatility) you can accept stablecoins.