6 Ways to make money in a Bear Market
As of June 2022, the value of crypto and stocks is dropping. Inflation is rising and everybody’s worried about a recession. Gas prices keep going up, which in turn negatively impacts the economy. Sadly, the war between Ukraine and Russia seems to have no end in sight. Everyone is afraid and there is a lot of uncertainty. Some people say that the market will bounce back shortly. Others say we’re in for a long downtrend. The truth is no one really knows.
My prediction is that the market will continue to dip since inflation is unmanageable. The war in Ukraine, rising commodities prices such as wheat, rising gas prices, supply chain issues in China, and the war in Ukraine have only aggravated the problem. I will share a few of my money-making strategies during the bear market. This is not financial advice.
Tip 1- Short crypto and stocks
I am currently shorting Ethereum and a few other cryptos. I am currently using Astrabit and employing the Horus strategy to short Ethereum. Market indicators are used to let customers know whether to short or long. Bots automatically trade and take profits. I am levered 2x.
Shorting and longing can be extremely risky because if you pick the wrong direction, you can get liquidated and lose everything. Therefore, you have to be careful with how leveraged your position is. I would recommend low leverage and only investing what you can afford to lose.
Furthermore, you should enter at the right time as best you can. If the market has already dipped, you should consider waiting for a bit of a recovery before entering a short position and vice versa. There are a few other protocols via which you can trade options. Here are a few referral links: Openleverage on Binance Smart Chain, GMX on Arbitrum (potential airdrop opportunity), Pika on Optimism (another airdrop possiblity) and Aboard Exchange on Arbitrum (another airdrop candidate).
Tip 2- Move money into stables
Cash-out of risky altcoins and Bitcoin and keep most of your holding in reliable stable coins like USDC, which have a backing. USDT is considered a bit unstable and risky. BUSD is another great option.
Tip 3- Dollar Cost Average
First, figure out how much money you want to invest. Then invest a small portion every time the market dips into cryptocurrencies that you believe in. You should have a long-term strategy. For example, if you have $1000 to invest, you can buy $25-50 each time. This would allow you to make 20-40 purchases. When the market becomes green take profits.
Tip 4 – Keep your crypto miners running and acquire cheap ones
As markets keep dropping, you’ll find great deals on crypto miners. I am keeping an eye out for KDA miners. I believe in the KDA and believe it will bounce back after the bear market. If I see a good deal, I’ll take it.
Keep your miners running and accumulate coins for the next bull cycle. Even if you are losing money on electricity, accumulating good minable coins like Bitcoin, Ethereum, Helium, KDA, and CKB could be a good idea. Let’s not forget that during the last bear market, miners who kept mining made fortunes.
Tip 5 – Airdrop Hunting
Airdrops are given by new projects when they launch their coins for testing their protocol, staking, or participating in governance. I most recently received an Optimism airdrop worth 5K. When a bear market strikes, it could be a great time to try out new protocols that could launch a coin. Cosmos has been a great chain for airdrops. I would recommend staking Atom, Osmosis, Juno, and Akash, to name a few, to be eligible for future airdrops. Furthermore, participate in governance on Cosmos for potential airdrop eligibility. I would follow @OlimpioCrypto and @defi_airdrops on Twitter to stay informed about airdrop opportunities.
Tip 6 – Identify new projects and participate in IDOs
Research new opportunities in crypto and participate in the project to earn Whitelist spots. Participation usually involves activity on Discord such as inviting others or conversing on Discord. Whitelist spots would allow you to buy the NFT or IDO at a cheaper price. This is the best way to get into good projects.
In conclusion, don’t be overinvested in the market. Love will always be more important than money. If you have lost money, it is not the end of the world. Money can be remade, but you as an individual only live once.