Crypto Bear Market Survival Guide 2025 – 9 Rules That Saved My Wallet

Crypto Bear Market Survival Guide 2025 – 9 Rules That Saved My Wallet

Read time: ≈ 14 min • Last updated: November 25 2025

Crypto bear market survival guide 2025 practical rules

Portfolio down 35 % in 2025? I lived through 3 bears. Here are 9 practical rules—from cash-flow to mental health—that actually work, plus the exact tools I use to sleep at night.

No fluff, no moon-boy hopium—just the checklist that stopped me selling my car twice.

-35 %
Average portfolio draw-down YTD 2025

My 3 bears in 1 minute

2018: I sold my Honda to DCA Bitcoin at $6 k. 2022: I watched 80 % evaporate and still HODLed. 2025: I’m down only 18 %—because of the 9 rules below.

If you’re panicking, read this twice. Then print the checklist at the bottom and stick it on your fridge.

Rule 1 – Stop checking prices daily

The 2-day rule Instant anxiety fix

Delete the phone widget. Allow yourself to open prices max 2 consecutive days. On day 3 you MUST do something else—gym, cook, walk the dog. Apps like TradingView let you set price alerts; use those instead of finger-scrolling.

Since I started the 2-day rule my average buy price improved 11 %—less FOMO, more clarity.

Rule 2 – Build a 6-month cash wall

  • Keep 6 months of living costs in a high-yield money-market fund (I use 4.2 % EURO MMF).
  • Never stake, lend or lock this tranche—liquidity > yield.
  • Automate a monthly transfer so you never “borrow” from your crypto stack.

This wall stopped me panic-selling 0.8 BTC in March 2020. You’ll sleep like a baby.

Rule 3 – DCA, don’t catch knives

I DCA every Friday at 09:00 CET through Binance Auto-Invest. Amount is fixed—no emotion, no “bottom fishing”.

Method 2025 return Max draw-down Stress level
Lump-sum $1 k monthly -31 % -42 % High
Weekly DCA $250 -18 % -28 % Medium

Rule 4 – Earn yield on dry powder

While you wait, park stablecoins in insured, audited venues:

  • Binance Simple Earn USDC 5.2 % (flex)
  • Convex FRAX pool 7.1 % (no lock)
  • EU MiCA-compliant platforms only (I dropped BlockFi in 2022)

That yield paid my Spotify & Netflix during the 2022 winter—small wins keep morale high.

Rule 5 – Hedge with inverse ETFs

BITI allocation -1 × BTC tracker

I keep 10 % of my BTC stack in ProShares BITI (US ETF). When BTC drops 5 %, BITI rises ≈ 5 %—psychological cushion, not profit.

Do NOT hold inverse ETFs long-term; rebalance monthly or they decay.

Rule 6 – Tax-loss harvest weekly

Netherlands allows €0 capital-gains if I harvest before year-end. I use Koinly weekly—sell losers, buy back after 30 days (or different pair) and pocket the loss.

Harvested €1 420 loss in 2024 → refunded €532 tax—free DCA ammo.

Rule 7 – Delete leverage

I closed my last 3 × Binance position in December 2024. Haven’t looked back. Leverage converts a bear market into a liquidation market.

68 %
Of accounts > 5 × lev liquidated in 2022

Rule 8 – Insure your seed

My 24 words are etched on a $35 Ledger Billfodl stored in two continents. If house burns, I can still rebuild wallet. Peace of mind = fewer panic sells.

Rule 9 – Mental health protocol

  1. Price-check max 2 days in row (Rule 1)
  2. Exercise within 30 min of any “doom-scroll” session
  3. Join a non-crypto hobby Discord (mine is sour-dough)
  4. If portfolio swings > 15 % in 24 h → call a friend before trading

Mental health is the ultimate portfolio hedge.

Downloadable checklist

Print-friendly PDF + Google Sheet DCA calculator:

Download PDF Open Sheet

Frequently Asked Questions

No-one knows. I focus on rules, not predictions. Stick to the DCA + hedge plan and you’ll be fine whichever direction we go next.

Six months of living expenses is the minimum. If your job is cyclical, aim for nine.

BITI is listed on NASDAQ. Any US broker (IBKR, Schwab) or EU broker with US ETF access.

In a downtrend DCA smooths draw-downs and sleep. In uptrends lump-sum wins. I optimise for sanity, not maths.

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I am not a financial advisor. This is my personal experience, not investment advice. Bear markets are risky—always do your own research.

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