Table of Contents
1 Key Takeaways
- Long Hold: Embrace DCA and ‘buy the dip’ for long-term gains.
- Auto Grid Bot: Exploit price volatility with automated trading.
- Martingale Bot: Profit from price drops with automated buying.
- Copy Experts’ Trading: Let seasoned traders guide your profits.
- Earn Fixed Income: Secure stable returns with USDT/USDC/BTC/ETH.
- Airdrops: Grab free tokens to boost your crypto portfolio.
- Crypto Mining: Unearth passive income in a bear market.
- Diversification: Spread your investments for risk mitigation.
- Never Stop Learning: Stay ahead with continuous learning and adaptation.
2 What is a Bear Market
A Bear Market in crypto refers to a prolonged period when prices are falling, often by 20% or more.
For instance, Bitcoin experienced a significant bear market in 2018.
After reaching an all-time high of nearly $20,000 in December 2017, Bitcoin’s price started to fall in January 2018.
By December 2018, the price of Bitcoin had dropped to just above $3,000.
This represented a decline of around 85% from its peak, marking a substantial bear market.
It’s the opposite of a bull market, which is a market trend characterized by rising prices and optimism.
During a bear market, market sentiment often leans towards fear, and can even reach extreme fear, according to the Crypto Fear and Greed Index.
However, there are still many opportunities to make money in crypto bear market, with the strategies GoRichFIRE presents in this article.
3 How to Make Money in Crypto Bear Market
Going through a bear market can be challenging, but don’t worry, you’re not alone and it’s more manageable than it seems.
The key is to have a long-term view during the bad time.
Keep in mind that winter will eventually pass, and spring will follow.
Hence, this is an ideal time to expand your knowledge of the basics and crypto trading.
In fact, there are still many opportunities for you to profit from the market, as long as you gain a solid understanding of the strategies.
By implementing proven strategies, you not only protect your investments during downturns but set the stage to make money in crypto bear market.
Moreover, we present these articles to further assist you in maximizing wealth growth.
- 14 Best Crypto Futures Trading Strategies (Profitable Tips)
- Crypto Trading 101: The Ultimate Beginner’s Guide
- 15 Best Ways to Make Money with Crypto
Let’s go on exploring these awesome strategies!
4 Long Hold (HODL)
A long strategy involves buying and holding assets with the expectation that they will appreciate in value over the long term.
History has proven that holding some of the major coins for years can make you very rich, such as Bitcoin and Ethereum.
For instance, if you had purchased Ethereum (ETH) back in 2015 when it was around $1 and held onto it until 2021 when it reached over $4,000, you would have made a significant profit.
In just 6 years, your $1,000 investment would have grown to over $4 million.
This approach is commonly referred to as “HODL” (Hold On for Dear Life).
However, having an exit strategy is extremely important because of the significant price fluctuations between bull and bear markets.
Two popular methods within the long strategy are Dollar-Cost Averaging (DCA) and “Buy the Dip.”
5 Dollar-Cost Averaging (DCA)
With DCA, you invest a fixed amount at regular intervals, regardless of the asset’s price.
This strategy helps you reduce the impact of volatility and spreads the investment over time, mitigating the risk of making a large, poorly-timed investment.
Today, you don’t have to execute this strategy yourself.
There are auto DCA bots available that enable hands-free investing and operate 24/7.
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6 Buy the Dip
“Buying the dip” is very hard to implement since it goes against human instincts.
People tend to flee when buildings collapse, rather than running into them.
This is exactly the same situation when facing turbulent price fluctuations, people often hesitate to buy.
However, buying the dip can be a lucrative tactic, particularly during a bear market.
Examples in History: BTC and ETH
During bear markets, it’s essential to examine historical data to comprehend the potential price recovery of cryptocurrencies.
For example, Bitcoin (BTC) saw a decline of approximately 83% from its all-time high in December 2017 to its low point in December 2018.
However, it later surged by over 1,300% from that low to its new all-time high in 2021.
Similarly, Ethereum (ETH) experienced a decline of about 94% between January 2018 and December 2018.
Despite this, ETH managed to recover and attain a new all-time high in 2021, with growth exceeding 2,000% from its 2018 low.
These examples illustrate the potential for some cryptocurrencies (not every single one) to bounce back robustly after a bear market, making “Buy the Dip” an appealing strategy for long-term investors.
7 DCA vs Buy the Dip
While both strategies can be effective, they have distinct approaches.
“Buy the dip” requires timing the market and making a conscious decision to purchase assets when their prices are significantly lower than their recent highs.
On the other hand, DCA is a passive strategy that does not require market timing, as you consistently invest the same amount over a predetermined period.
DCA helps to average out the cost basis of your investments and mitigates the risk of making a poorly-timed lump sum investment.
The 2 strategies might not be able to let you make money in crypto bear market, but allow you to accumulate holdings at lower prices and potentially profit in the next bull run.
8 Grid Bot
Grid Bot aims to profit from price fluctuations within a specified range by placing multiple buy and sell orders.
The Bot divides the range into multiple price levels, and as the asset price moves up and down within the range.
It automatically buys low and sells high, generating profit from price volatility.
The setup of Grid Bot is easy, and it’s effective for both beginners and experienced traders to make money in crypto bear market.
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9 Short-Selling
Short selling is a popular strategy to make money in crypto bear market.
You sell high now with the expectation to buy back at a lower price later.
It’s a way to profit when the prices are falling, and it’s possible to do this even when you don’t initially own the asset.
Imagine Bitcoin’s price is currently $50,000, but you predict it will fall to $40,000.
You can ‘short sell’ Bitcoin at $50,000 and buy it back later when the price drops to $40,000.
This would net you a profit of $10,000 (minus any transaction costs).
To short sell, there are 3 common methods: Futures contracts, Margin Trading, and Perpetual Futures contracts.
Each method allows you to sell high now and buy back lower later, but they use different mechanisms and come with their own risks.
10 Martingale Bot
The strategy is to buy more cryptocurrency when prices drop, lowering your average cost.
it’s like doubling your bet until you win in a game of dice.
The strategy purchases twice as many cryptocurrencies each time the price drops, following a pattern like this: 1, 1, 2, 4, 8, 16, and so on.
When the price recovers slightly above your average cost, you sell all at once for a profit.
However, doing this manually can be tough.
You can use Martingale Bot to trade 24/7 on your behalf to make money in crypto bear market.
Just remember, while the strategy can be effective, it can also carry significant risks if the price keeps falling.
▍Example of Martingale Bot
If the price of a coin falls by 1%, the bot purchases more coins. It keeps doing this as the price descends to 99%, 98%, 97%, etc.
When the price falls by 5%, your average cost sits at about 96% of the initial price. If the price then increases by just over 1%, you’re back to break even.
This is a safer strategy for beginners compared to others.
It’s recommended to pick top cryptocurrencies and buy in when the prices aren’t sky-high.
You can use the martingale bot for either futures or spot trading.
Beginners’ Bot: Auto DCA-Buy and Sell
Buy More When Prices Drop, Auto Sell to Make Money
11 Copy Experts’ Trade
Thanks to technology, you can directly copy expert traders to passively make money in crypto bear market.
Platforms like Bitget offer you to copy trade from traders with a proven history of returns.
By following these experts, beginners might have a better chance to boost potential returns, regardless of bull or bear markets.
All you need to do is click on ‘follow’, and the expert(s) will start generating profits for you.
Allocating a portion of your portfolio to this strategy can potentially have a positive impact on its overall growth.
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12 Fixed Income (Up to 8.25%)
Earn a predictable and steady stream of income can be appealing to make money in crypto bear market.
Some platforms provide annual percentage rates (APRs) on stablecoins, such as USDT and USDC.
Stablecoins are pegged to the value of a stable asset such as the US Dollar.
This means they are not as volatile as other cryptocurrencies.
Although fixed income is a relatively safer way to make money, it offers a competitive rate compared to traditional investment.
For instance, Bincentive offers a Net APR of 7% – 8.25% for USDT and 5.5% – 7% for USDC.
Allocating a portion keeps your funds in a relatively safe zone during market downturns.
Net APR takes into account the platform’s fees.
Earn up to 8.25% fixed income!
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13 Stay Tuned
Staying informed can help you make money in crypto bear market and capitalize on emerging opportunities.
Consider using the following resources and suggestions:
▍News websites
Follow reputable crypto news websites such as GoRichFIRE, for the latest market updates, trends, and analysis.
▍Social media
Engage with crypto communities on Twitter, Reddit, and Telegram to gain insights from industry professionals.
Follow GoRichFIRE’s X account and Join Telegram channel for the newest trends, key big things, and discuss with others.
▍Research reports
Delve into research reports from reputable organizations such as Messari, Coin Metrics, and Glassnode for comprehensive analysis and data-driven perspectives.
▍Educational content
Utilize online courses, podcasts, YouTube channels, and subscribe to newsletter from GoRichFIRE to gain expert knowledge on diverse aspects of cryptocurrency investing and trading.
▍Networking
Participate in industry events, webinars, and meetups to connect with fellow enthusiasts and gain insights from their experiences.
Lock on Crypto Before Price Pumps
Leverage On-Chain Metrics, Indicators, and Insights
14 Get Free crypto via Airdrops
Airdrops are a popular way to make money in crypto bear market.
They are free tokens distributed by projects to enhance their visibility and foster awareness.
To participate in airdrops, it is usually necessary to fulfill specific eligibility requirements.
They often require users to hold a certain amount of a particular cryptocurrency or complete designated tasks.
Platforms like Airdrop Alert and CoinMarketCap offer you a clear picture of upcoming airdrop projects.
15 Yield Farming & Liquidity Mining
These 2 methods are to earn rewards by lending your cryptocurrencies to DeFi platforms.
In yield farming, you lend your crypto, earning rewards typically tied to the platform’s revenue, like fees or interest.
Liquidity mining takes this a step further, where platforms may ‘airdrop’ their native tokens to providers.
For instance, Uniswap, a decentralized exchange, allows you to lend your assets into liquidity pools.
In return, you earn a share of transaction fees, which is yield farming.
Additionally, Uniswap has previously airdropped their native UNI tokens to participants, illustrating liquidity mining.
Despite the potential to make money in crypto bear market, both methods involve risks, such as smart contract vulnerabilities and price volatility.
16 Crypto Mining
There are 2 primary mechanisms of crypto mining: Proof of Work (PoW) and Proof of Stake (PoS).
In Proof of Work, the system adopted by Bitcoin and others, miners solve intricate mathematical problems to add a new block of transactions to the blockchain.
Proof of Stake allows users to ‘stake’ a portion of their cryptocurrency for the opportunity to add the next block to the blockchain.
Starting with mining can be tricky for beginners.
PoW demands significant investment in hardware and energy, while PoS necessitates owning and often freezing a large amount of a specific cryptocurrency.
In a bear market, mining profitability can decrease due to falling coin prices.
However, if you trust in the crypto’s long-term value, mining could still be a viable strategy.
You can learn more about crypto mining here.
17 Diversification
Spreading your investments across various cryptocurrencies and asset types can help reduce the likelihood of considerable losses during a bear market.
Building a well-diversified portfolio safeguards your investments from price swings and opens up the potential for earning during a bear market.
You can do this by spreading your funds across multiple cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH).
Consider platformswith lower risk, like Bincentive, to steably make money in crypto bear market for you.
Maintain strict control over a portion of your funds dedicated to high-risk, high-return ventures, such as short-term crypto trading.
Further reduce crypto market risks by considering other asset classes, such as stocks, bonds, and commodities, for your investment portfolio.
18 Key Charts
▍13 Strategies To Surviving the Bear Market
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19 Frequently Asked Questions
Is it better to buy crypto in a bear market?
Buying crypto in a bear market can be a good opportunity to acquire assets at discounted prices. Focus on well-established cryptocurrencies like BTC, ETH, and promising altcoins, and have a long-term perspective.
What to do with your crypto in a bear market?
In a bear market, diversify your crypto portfolio. Use strategies like Dollar-Cost Averaging, auto trading with Grid Bots, or earning fixed income on stablecoins.
Which cryptos do well in a bear market?
Historically, Bitcoin and Ethereum have shown resilience in bear markets. Stablecoins can also be a safe bet, generating fixed income on certain platforms. Diversify your portfolio for balance.
How do you make money on downtrend crypto?
Short selling, a strategy to profit from falling prices, is popular in a bear market. Other strategies include using Martingale Bots to buy more when prices drop, or copying expert traders’ moves.
Should I still invest during a bear market?
Investing during a bear market can be a good opportunity with a long-term perspective. It’s an ideal time to acquire assets at lower prices and diversify your portfolio. Stay informed about market trends.
How long can a bear market last in crypto?
The duration of a bear market in crypto can vary significantly. For instance, Bitcoin experienced a bear market in 2018 that lasted nearly a year. Stay informed and adapt your investment strategies accordingly.
How much cash should I have in a bear market?
The amount of cash to hold during a bear market depends on your personal financial situation and risk tolerance. Having cash reserves provides flexibility to take advantage of investment opportunities.
*Note
1. Profits are not guaranteed. Providers may change any terms at any time.
2. It’s crucial to note that regulations may vary, and users from certain countries might not pass KYC requirements. Always check your local regulations before participating in any program.
3. Currently, the 20% off on transaction fees on Pionex is only available on spot trading. Please note that terms may be subject to change without notice.