How can we benefit from the decline in cryptocurrency prices as some traders make greater profits in a bear market.
Here are the most important ways you can use:
1. Short Selling
- How does it work?
Bet that the price will fall. Sell now at a high price, and buy later at a lower price; the difference is your profit.
- Where?
On platforms that support leveraged trading such as: Bybit, Binance, OKX, KuCoin.
Warning: This requires experience, as it is fraught with risks.
2. Buy the Dip
- A smart strategy for long-term investors.
- When prices drop significantly, buy gradually in batches and wait for the market to rise to make profits.
- It is best to buy strong currencies with a future (like BTC, ETH, or supported projects).
3. Hedging with stablecoins (USDT, USDC)
- At the start of a downturn, convert some of your holdings into stablecoins.
- What do you benefit?
Protect your capital from declining.
Buy at cheaper prices later.
4. Technical analysis in bear markets
- Some coins technically bounce back at strong support levels.
- You can make profits from short corrective movements.
5. Collecting coins from strong projects
- Take advantage of low prices to build a long-term portfolio of strong currencies at attractive prices.
- Like big investors who "exploit fear to build wealth."
6. Profit from airdrops and staking
- Many projects offer rewards to users who hold or stake their coins.
- You can earn additional coins without buying.