In 2022, the cryptocurrency market will experience a correction period that could last for several years. Not all market participants know that a bear market can be used to earn income. Let us tell you the ways to make money from falling cryptocurrency prices. You can buy cryptocurrencies profitably on the Alligat0r crypto exchange aggregator website.
What is a “bear market”?
The term “bear market” was coined by traders who labeled bear phases as prolonged corrections. It occurs when the market is severely overheated, cryptocurrencies are overbought, and the overall boom is over. Experienced investors begin to fix profits and are not as interested in projects, which causes the correction to occur. However, there are many ways to make money during the correction. Let’s consider each one separately.
Open short positions
Or simply “shorting,” which implies the trader’s bet on a further decline in the price of the cryptocurrency. This method of earning is suitable only for experienced investors. You should be able to weigh the risks and exclude the probability of liquidation of the position in the future.
This is a time-tested day-trading strategy. It allows you to earn from small fluctuations in the price of the cryptocurrency. You can benefit from the cryptocurrency’s news background.
It involves earning coins through DeFi-protocols. You can provide loans or liquidity to earn a pretty good income.
The easiest and safest way to make money in a bear cycle. An investor needs to send a certain number of coins into a steak and charge a daily or weekly profit.
For example, in Trust Wallet, you can send Binance Coin to a steak and get 14–15% annual returns. This method is great for beginners who have cryptocurrency but can’t trade on exchanges.
Participation in Airdrop
There are not so many projects that appear on the market during the correction period, but there is still an opportunity to earn by participating in airdrops. If the project becomes successful before the bull market, the participant in the airdrop can raise a solid sum. Giving away cryptocurrency is not the easiest thing to do. But with such a simple way of earning, you can increase your capital many times over.
Assembling a mining farm
A cryptocurrency price correction is automatically a decrease in the complexity of mining. There appears to be a great opportunity to mine a large number of coins, the price of which, in dollar terms, in the bull market will be many times greater.
Of course, during bear cycles, the cost of cryptocurrencies may not justify the cost of electricity and video cards. However, if you mine for the long term, it is a profitable way to earn money.
The bear market is a great way to accumulate coins at a low price and then sell them in a bull cycle. You can trade XMR to Dash in the meantime if you see fit. Also, during the fall period, it will not be superfluous to dive into the information environment of the cryptocurrency market in order to know when to sell this or that cryptocurrency and when not in a bullish cycle with the baggage of knowledge.