Even when the crypto market is on the decline, there are a few strategies you can employ to generate money. Naturally, there is a tradeoff between risk and reward, and it is up to each of us to discover our own particular balance.
If you don't want to take any chances, keep in mind that you can always receive free crypto, even if the market price is low.
Shorting
What is the definition of shorting? Shorting, also known as a short sale, is the opposite of buying a coin with the expectation of it rising in value.
When you end your short position, you must acquire the exact same amount of coins at the current price in order to return the exact same amount of coins to the exchange.
As a result, in a rapid sale, the best scenario is one in which you start the short position at a high cost and close it at a low cost, thereby selling high and purchasing low. This strategy is typically used to hedge money and reduce risk, but it could be useful in the event of a prolonged market collapse.
Swing trading
What is swing trading, and how does it work? Instead of focusing at the enormous macro trend, swing trading takes advantage of the short-term cost swings in a coin's graph.
Within a proven up or downward price movement condition, there will be little peaks and valleys in the price as it moves in that general direction. As a result, experienced traders can profit from their micro-trends by buying the lows and selling the highs in a bear market. Market volatility during crashes is the ideal condition in this circumstances since it provides the graph's most relevant local optima.
To be able to trade, you must learn about many types of technical analysis, such as pattern formation and indicators like the RSI. This is only recommended for people with a high risk tolerance and a lot of experience using technical analysis to look at short-term movements.
Passive income coins
If you have a low risk tolerance and don't need to use more advanced trading techniques, the next best thing is to keep onto coins that earn passive income regardless of market conditions.
There are various cryptocurrencies that can be used to generate passive income. Staking coins and trading coins, on the other hand, are the two most common types.
Staking coins provide additional coins for each coin utilized in the staking procedure in exchange for regulating the community. In the majority of currencies, staking should generate a consistent 5 percent to 10% annual yield.
Some proof-of-stake variants have better payouts than other staking variants. Exchange coins provide a variety of benefits on exchanges, including lower pricing and, in certain cases, profit-sharing in the form of a percentage of trade prices returned to coin holders.
The % return on such coins is directly proportional to the quantity, which may vary.
Staking coins are more consistent and comparable to volatility, whereas trading coins are still risky because they rely on the success of a single exchange.
I used to stake my coins on bsc. Because bsc is so hot right now