The majority of new investors are in the midst of their first crypto winter, during which most digital assets have lost more than 70% of their value since their 2021 highs.
While a bear market is difficult for everyone, it can be especially difficult for those who are new to the market and have little experience dealing with market volatility.
However, there are still ways to earn passive income during a bear market — crypto traders simply need to know which cryptocurrency investment platform in India to use.
Passive income opportunities in cryptocurrency can help you offset losses during market downturns and crashes.
What is the bear market in the crypto world?
A crypto bear market is a prolonged and often volatile drop in the price of almost all assets. In traditional financial markets, a bear market occurs when asset prices fall 20% or more from recent highs amid negative sentiment about price prospects.
A crypto bear market is locally known as a crypto winter.
You might be having a question, how long will this bear market last?
While there is no set time frame, most people agree that a cryptocurrency bear market lasts at least three months. The current crypto winter began in November of 2021 and shows no signs of abating as of this writing.
It is impossible to say for sure, but based on past trends, it may take some time. The previous cryptocurrency bear market lasted over two years, from 2017 to late 2020. If the current bear market follows the same pattern, we could be in for a long winter.
Predicting a bear market is nearly impossible, and most investors do not expect one until they have lost at least 5% to 10% of the value of their investment portfolio.
How to survive a crypto bear market?
A bear market phase can be a major impediment for traders and investors looking to profit from the cryptocurrency market. When you look at the numbers on the chart as a crypto trader, you can feel your investments slipping away.
Still, It has some advantages other than giving you nightmares.
- When the price of something falls, smart investors know it’s a good time to buy. They profit from the lower prices by acquiring assets and then selling them when the market recovers and prices rise again.
- A bear market distinguishes long-term, disciplined investors from those looking for a quick buck. Those who can weather the storm and keep investing during a downturn are usually the ones who come out ahead in the end.
There are some methods for surviving crypto winters like this by having passive income from your crypto investment.
Let’s go through the methods in detail.
How to make passive income in a crypto bear market?
Here’s a list of ways to earn passive income in the crypto bear market using a crypto bear market strategy. We simplified it so that you can remember all of the strategies for making passive crypto earnings in a bear market.
Staking is one of the most basic and widely used methods of earning passive crypto income. You earn passive income while also helping to secure the network against spam and malicious threats by staking your funds.
Bear markets serve as a reminder of the value of holding tokens to generate passive income. Staking can be an excellent way to generate income, particularly during a crypto bear market or crypto winter.
Trading cryptocurrency during a bear market can provide an excellent opportunity to purchase at a discount and sell when prices rise. Passive trading can be an excellent way to offset losses during a bear market. Although it may be more difficult to find profitable trades, those who can capitalize on market conditions may earn a substantial amount of money.
Investors can trade 100+ cryptocurrencies on Carret, India’s secure crypto trading platform.
This is yet another popular method of earning passive income from the cryptocurrency market. Crypto mining is simply the process of solving complex mathematical problems with your computer’s processing power, competing to solve it and complete the next block on the blockchain, and being rewarded in cryptocurrency for doing so.
This is primarily a method for blockchains that use the proof-of-work (PoW) consensus mechanism.
However, it should be noted that this type of passive earning strategy in the crypto space necessitates a significant initial investment in setting up a mining rig. It necessitates the purchase of expensive hardware, the installation of said hardware, and the provision of a 24-hour power supply to keep the mining rigs running and earning you money.
Affiliate marketing is a type of business in which someone promotes a product or service and is compensated if someone purchases the item as a result of their promotion. This can be accomplished through a variety of platforms, such as social media, blogs, and email lists.
Another way to generate passive income during market downturns is through affiliate marketing in the cryptocurrency space. Many projects offer high commission rates, and some even pay out rewards in the native token of the project.
A slow and steady approach is best for a long-term investor. That’s where dollar-costing averaging comes in, as it allows you to focus on the long-term benefits rather than the ups and downs of a single day or week.
The strategy entails dividing your total investment into small increments and regularly investing them in the market.
You set recurring buys at regular intervals for a fixed dollar amount with dollar-cost averaging, and you buy both the highs and lows. If the price of your investment falls while you are dollar-cost averaging, you will profit if the price rises again.
Airdrops and Forks:
Airdrops are the next cool way to earn cryptocurrency while you sleep. Airdrops are similar to stock market bonuses given out by traditional publicly traded companies.
Airdrops involve sending small amounts of crypto tokens or coins to wallet addresses after a specific action, typically a retweet or sharing a post on another social media platform is completed successfully. A crypto airdrop’s ultimate goal is to raise awareness and circulation of a new token or coin.
In terms of forks, whenever a hard fork occurs, if you own crypto tokens from the original existing blockchain, you will be eligible to receive rewards as well as additional cryptos!
There is no magic formula for making money during a bear market, but there are several techniques that investors can use to protect their investments and even profit.
We can all agree that passive earning is a fantastic way to make money from your existing crypto assets without having to do anything.
Carret is the safest, and simplest crypto investment app in India with 100+ cryptocurrencies to invest and earn up to high yield on crypto assets like Bitcoin and Ethereum. With crypto assets being volatile, Carret’s flagship product 24Carret offers secure interest of up to 8% p.a. on Bitcoin, 9% on Ethereum and 17% p.a. on USDC and USDT.