Crypto markets are a time when prices are falling and investors are losing money. But there are still ways to make money in a bear market.
Downturns in the market can be used as opportunities to build wealth in the long run in Crypto Market.
In this blog post, we will share some tips on how to make money in a crypto bear market.
We will also discuss some of the risks involved. These crypto bear markets can be scary, but they do not have to be . With a little planning and effort, you can still make money in a bear market.
So, if you are looking for ways to make money in the crypto markets, read along!
The cryptocurrency market is a bearish phase since the beginning of 2023 . Additionally, the investor sentiment has only been shaken up further with the collapse of blue-chip crypto firms .
While extreme volatility and price declines are typically associated with bear markets in which investors tend to lose their savings.
But a downturn can also be used as an opportunity to build Wealth in the long run.
What are the Ways in which You can Earn Money in Crypto markets?
Staking already own some and do not intend to sell them . is a simple way of increasing your assets if you
How does it work ? – Staking requires you to lock your crypto tokens with a platform to earn interest on them.
Staking platforms often allow both fixed and withdrawable staking.
Centralized exchanges such as Binance, Crypto.com , Ku coin etc. allow staking of tokens. Additionally, decentralised platforms including Beefy Finance , ACryptoS and DEXs like Pancake Swap are available.
Who should stake Tokens – Staking is a must for anyone who already owns tokens and does not want to sell them.
Staking offers the opportunity to effortlessly build your assets and then sell them when prices increase.
How much can you earn through Staking ?- The wealth that can be gained from staking depends on two variables : the type of tokens staked and the lock-in duration.
Staking Tether (USDT) will probably result in a 2% annual percentage rate (APR) and won’t make you rich.
On the other hand, you can easily earn more than 10% APR if you stake some of your volatile coins for a few months.
From an investor’s point of view , yield farming is comparable to staking. If you currently own crypto assets, this strategy can be more appealing .
How does it work ? – Liquidity minting is sometimes referred to as yield farming . It is a passive method of making money by adding to liquidity pools.
In a nutshell, it is the practice for locking up your cryptocurrency . Yield farming platforms such as Beefy Finance, Autofarm and Single Finance are available online.
Who should do it ? – As with staking, yield farming is for those who own cryptos and do not want to sell them .
A smart long-term approach is to purchase cryptos in a bear market , increase them through yield farming . And then, sell them in the next bull run.
What are the potential gains ?
Again, it depends on the liquidity you offer. If you invest in a single common asset, you can see annual returns in single digits.
The advantage , however, is that there are no upper limits. You can choose liquidity pairs that print more than 1% per day, including ones with really high risk,.
Another way of putting your resources to work in a down-market is to lend .
How does it work ?- Crypto lending is exactly what the name implies. You lend your accessible assets to someone else for a predetermined time.
You get paid an agreed-upon interest rate for the period of the loan. Crypto lending is possible on popular CEX and certain decentralized platforms.
Who is it for ? – For those who already own crypto assets.. The strategy makes more sense than staking and yield farming.
Yet, if you choose stablecoin lending , you can also buy coins and then lend them out.
Can you earn enough ? – Usually, the returns are less than that of staking and yield farming. Despite this , the market is highly erratic and times of tremendous demand can result in some hefty gains.
4.Automated Grid Trading Bots
Trading through Bots is a riskier bet.
How is this done ? – Grid tracking bots benefit from market fluctuations. The bot will always sell a portion when the price goes up a little and buy a portion when the price goes down a little.
As long as, the price stays within a chosen range. You can establish a price range for the bot and decide how many grids you want .
A market that fluctuates sideways is ideal for a grid bot. Some platforms , however, also provide specialised bear market bots.
Who should be trading through bots ? – Everyone can do it because automated grid trading bots are simple to set up . You don’t need to have any crypto assets to trade using bots.
Are the earnings good enough ? – The earnings depend on a variety of elements including volatility , market development , and the coin chosen.
But under the appropriate circumstances , it is not uncommon to get daily returns of 1%.
Decentralized finance (DeFi) is advancing rapidly . New projects are launched daily, offering great investment opportunities.
How does it Work ? – Research must be done thoroughly before investing in DeFi initiatives. It takes a lot of time to properly assess risks and identify initiatives.
It takes a lot of time to properly assess risks and identify initiatives that are intriguing. However, given that many DeFi projects pay off handsomely, it is a worthwhile use of your time.
Who should invest in DeFi projects ? – The strategy is intended for experienced cryptocurrency users. Like genesis pools, which is a component of DeFi projects.
In order to generate profitable returns , one needs to have a through understanding of the crypto market and technology.
What is the earning opportunity ? – It usually depends on the project . The protocol aims to stabilise purchasing power .
Essentially, without any rebasing or collateral risk by increasing and decreasing. supply in a manner similar to how central banks exchange fiscal data.
How you can generate income from it ? – Suppose X Shares are purchased , then deposited on the platform. And then , your x shares will print y tokens with an average daily APR of a 4% as long as the Y price is greater than the USDC price.
This is the riskiest approach . However , it has immense earning potential. It is worthwhile to note that crypto mining has a high potential for scams if the wrong platform is chosen.
How does it function ? – Firstly the mining of cryptocurrencies in this context has nothing to do with the standard Bitcoin mining procedure .
On the other hand, you may contrast cryptocurrency mining with staking or lending . However, the two are slightly dissimilar.
Typically, the initial step involves depositing a certain amount sum of money. There is no way for you to withdraw this locked deposit.
However, starting from the time of the deposit , you will receive a consistent return for an indefinite or specified period.
However, most cryptocurrency mining projects urge you to re-stake (compound) your winnings in order to increase the project’s value and earnings.
Who it will work for ? – This for those who can take risks and will not mind losing their money if their bet goes wrong.
How much money can you make mining crypto ? – Many crypto miners offer daily yields of 3% . Some ventures offer 8% or more each day.
However, the likelihood of a scam increases as daily returns increase. Therefore, it is not advisable to invest in a cryptocurrency miner that offers a daily return of more than 3%.
A smart long-term approach is to purchase cryptos in a bear market. Increase them through yield farming , and then, sell them in the next bull run.
The key to success is matching the right investment tools to each market and using them to their full advantage.
Short selling, put options , and short or invest ETF;s are a few bear market investments that allow investors to profit from market weakness.
The majority of new investors are in the middle of their first crypto winter, during which most digital assets have depreciated by more than 70% from their November 2021 highs.
While a bear market is tough for everyone, it can be especially challenging for those who are new to the space and don’t have much experience dealing with market volatility.
Bitcoin holds above $26,200. Polygon fall up to 3%. Bitcoin;s dominance is currently 48.95% . Meanwhile, BTC volume in the last 24 hours stood approximately $7.29.
This is because, unlike stocks and commodities, the crypto market is not regulated exchange but is spread across a decentralized network bof computers.
Cryptocurrencies are digital tokens that represent the value of decentralized digital networks. One is equity, the other is largely software. They also trade differently. Stocks on heavily regulated stock exchanges and cryptocurrencies on largely unregulated exchanges.