Opportunities Are Abound During A Bear Market

0 38

Written by

beastion

I love cryptocurrency, novels, technology and pretty much anything that caught my interest... [more]

2 years ago

In community: Cryptocurrency and Blockchain(7b7f)

Topics: Ideas, Blog, Freewrite, Writing, Earning, ...

A Bear Market? So What?

Seeing the market in red can sure be depressing. This is especially true if one holds various digital assets in one’s portfolio and all of them are in red simply because they move with Bitcoin. That being said, the bear market is not just a source of anguish, it is also a source of opportunities.

If you’re thinking that I’m talking about buying in the dip or dollar-cost averaging then you’re not wrong. Both buying in the dip and dollar-cost averaging are viable methods of accumulating more cryptos when the bear is out. Of course, it’s not limited to that. Even if you didn’t plan on investing more money into your favorite cryptos, you could still earn quite a sum by doing a bit of writing. For example, you could write articles for your favorite platforms like read.cash, Hive.blog and so on.

Keep Those Articles Coming!

Before I begin, I would like to confess that I’ve not been following the advice that I’m about to give. Indeed. I’ve been writing very sparsely these days. And no, it’s not because I’m lazy but simply because I lacked the time to research and write articles as most of my time is used for my studies.

But that’s just me. If you’re not writing articles during downtime simply because you feel that the reward wasn’t worth your time then you’re missing out a lot.

In truth, one could earn more if one is to write when the market is down compared to when it is up. Here’s a simple explanation of what I meant. Let’s say that you earn $5 worth of BCH for an article you’ve written in read.cash. If you wrote that article when the market is up and then convert it to cash as soon as possible then you’ll only get the $5 value. Now, if you wrote an article during a bear market and got $5 worth of BCH for said article and waited till the prices recovered, then you’ll get more than $5 because of price appreciation.

Yeah, it’s a simple concept and one that everyone should know by now. Certainly, there’s still some risk involved as prices could go down further while you wait. But the risk is smaller compared to when one writes during a bull market while waiting for the price to appreciate more. Of course, writing articles during a bull AND bear market is still the best option as one could enjoy the benefits of both worlds. But one should double their efforts during a bear market as it could mean more potential profit.

Moreover, as there are established social blogging sites out there that pay with cryptocurrency, you won’t run out of options even if you posted more than one article a day. So yeah, keep that creative juice flowing and start writing some great articles!

Other Ways to Earn During a Bear Market

Let me clarify something first: THIS IS NOT A FINANCIAL ADVICE. I’m not advising anyone to invest in anything. I’m just listing some of the things I’ve done to earn during the bear market. SO PLEASE DO YOUR ONW RESEARCH FIRST BEFORE MAKING ANY INVESTMENT.

First on the list is yield farming. Yield farming is when one stakes or locks one’s digital assets to a platform to earn interest from them. To make it easier to understand think of it as a savings account. The amount of interest you earned is determined by your investment and even the popularity of your tokens. The more popular the token, the bigger the expected interest when said token is lent out to other users. One such platform that offered yield farming is Nexo. Just by simply storing your cryptos there, you’ll be able to earn some interest. I too, use Nexo and am storing some of my BCH there which allows me to earn a small amount of BCH through interest.

Liquidity Pools is next on the list. By fairing your cryptos with other cryptos, one could earn tokens as rewards. For example, I’m currently using Benswap to pair some of my BCH with EBEN which in turn earns me more EBEN. Another liquidity pool that I’ve invested in is the HIVE – DEC liquidity pool in Tribaldex. Not only do I get several tokens as rewards, but I’m also earning SPS through the Splinterlands SPS airdrop. Moreover, by staking the SPS I’ve earned through the airdrop, I can earn more SPS! It’s like hitting three birds with one stone!

That being said, to get the SPS airdrop, one must have a Splinterlands account connected to Tribaldex or Hive Engine. Creating a new Splinterlands account is easy and free though so it’s not an issue. Moreover, although liquidity pools sounded like a nice investment, they too possessed some risk. For example, there’s the so call impermanent loss. Impermanent loss happens when the price of your tokens changes after you first deposit them in the liquidity pool. But as the name suggested, the loss is not permanent as the prices of cryptos change very quickly. This means that as long as you wait patiently, you’ll recover those losses eventually.

Conclusion

As one can see, the crypto market offers countless means or ways of making a profit even during the bear run. There are safe options such as writing articles to earn tokens where no investment is required and the risky ones where one is expected to invest to earn. The former appeal to people that didn’t like to take risks while the latter appeal to people willing to take the risk. Despite the difference though, both options served the same purpose which was to allow people to reap some profits during a bear market.