The market is bearish when the asset price is falling or is low - this is a common belief. But how then is it possible to earn during the bearish market?Market Moves in Cycles
This is the best strategy to use for beginners who don’t yet have the needed experience to judge when it is better to buy. It is also suitable for long-term investors who don’t have time to follow rapid price changes and are committed to a specific asset. For example, you have BTC, and its price is moving down. Your BTC is worth $20,000 now. You expect it to fall. So, you sell your BTC and get $20,000.
But this strategy comes with increased risks because if the asset price grows, you will have to buy it for more money than you’ve sold it for. It means that you can withdraw your funds whenever you want. But normally, rewards there are lower, too. For example, you lend 1 ETH worth $1,000 with a 5% interest rate. By the time the loan has to be repaid, ETH dropped by 10% and costs $900. You receive your 1ETH + $50 in interest.Therefore, lending, as well as staking and yield farming, are profitable only if the price drop doesn’t exceed the percentage paid to you for your coins.can bring significant profit during the bearish market.