In cryptocurrency, a bear market is a prolonged period when more than twenty per cent of the cryptocurrencies in the market decline both in their market capitalization and value. a bear market refers to an extended period where prices fall significantly and market confidence plummets. In practice, it is a period when the prices of major cryptocurrencies and alternate coins go down in value. However crypto prices go up and down within a day, hence for the classification as a bear market to hold, the downward trend must last over three months at least.
For experienced investors, a bear market is nothing out of the norm. It has happened in the past, and it will always happen again. Even though it's generally a hard time for all crypto investors and institutions, new traders are the most hit. The low confidence of investors and pessimism are hallmarks of bear markets.
However, the downturn doesn't necessarily mean you can't make money from cryptocurrencies at times like this. There are now multiple ways to earn during a bear market such as;
Staking
Staking refers to locking away your cryptocurrencies. Staking allow you to validate transactions on your blockchain network of choice — also known as a Proof-of-Stake (PoS) consensus method. By staking, you’re essentially telling the network you’re willing to keep your device connected and validating transactions. When you stake, you help to validate transactions on that blockchain and are rewarded for that. The more you stake, the more transaction you are likely to validate, which translates to more earnings. Most platforms provide two options: flexible staking (withdraw at any time) or fixed staking (where you commit your assets for a set period, like two months or more).
Yield Farming
Yield Farming is a cryptocurrency investment method that allows investors to earn interest and rewards on their crypto assets. With yield farming, investors lend their crypto assets to DeFi platforms that hold these assets in a liquidity pool for a specified period. These pools provide liquidity to decentralized finance platforms.
In a manner of speaking, it's like depositing money in the bank for a time. The bank gives your money out as a loan to borrowers at various interest rates. Then they pay you a portion of that interest. The amount of interest is based both on how much you stake and the popularity of the token at the time.
Margin Trading
Margin trading is the act of trading cryptocurrencies with money you borrow from another trader. Due to the lack of significant volatility or negative volatility during bear markets, it's quite hard t make significant profits from trading unless you are investing a huge sum, which is out of the reach of many. However certain brokers are willing to let you trade using their money and in exchange, they get a cut of the profits accrued. Margin trading has the potential of making one huge profit, but it is also very risky. It's recommended for experienced traders and investors.
Dollar Cost Averaging
This is the buying of a fixed amount of an asset on a regular schedule, regardless of the price. Through dollar cost averaging, you will be able to buy more cryptocurrencies as prices fall and less as they rise. In the long run, the average price of the digital asset will even out, and investors have a good chance of making a profit when the bull market returns.
Crypto Saving
This is a way of earning passive income by putting your crypto away on a crypto platform, much like depositing money in a savings account and allowing it accrues interest over time.
Crypto Lending
In crypto lending, you lend out your crypto to a borrower at a set interest rate. This is different from yield farming. In crypto lending, you are the lender, and the other person is the borrower, while in yield farming, the DeFi platform is the lender, the other person is a borrower, and you are just an investor. In yield farming, there's no risk of third-party defaults as you only deal with the DeFi platform, while in crypto lending, there's a risk of third-party defaults.
Others include mining, forks and airdrops, investing in stablecoins and swapping them from time to time to accumulate more value, investing in new projects with prospects etc.
References
https://www.devere-group.com/7-ways-to-earn-crypto-in-a-bear-market/
https://academy.yellowcard.io/topics/how-new-traders-can-profit-from-a-bear-market/
https://boxmining.com/7-ways-to-profit-during-a-crypto-bear-market/
https://beincrypto.com/learn/how-to-make-money-in-a-bear-market/
https://beincrypto.com/learn/top-ways-to-make-money-in-a-crypto-bear-market/
https://www.devere-group.com/7-ways-to-earn-crypto-in-a-bear-market/