Home
News
The cryptocurrency market might be in the bear territory now, with all the excitement of the last bull market just nothing but pigments of one’s imagination. While it is not good for long-term holders, it is not a license to stop investing. This article will look at proven ways you can make money even in a bear market and show you how to make your own crypto even in a capital-low market.
Since its inception, the cryptocurrency space has been sold as a way of changing the methods employed in solving problems. Still, it has failed to live up to the hype, and the solutions proffered by these tokens are either buggy or more expensive than their traditional counterparts.
The market has grown so big that there are quite a number of meme tokens, a speculative type of token with no real use case, rather than being pumped and dumped. This doesn’t undermine the many tokens that solve real-time issues like passive income, cross-border payments, and cheaper transactions, but with a lot of projects going nowhere in plans and price, it is important to not throw caution to the wind.
These are three things you can do with your cryptocurrencies.
Lending
Whether you like it or not, by putting money in your bank, you are facilitating global lending processes. This feature of lending is also available in the cryptocurrency space. It is as simple as it is ancient.
The boom of the Decentralized finance space in 2020 has given many investors yields they could only imagine. Being introduced to returns more than 1000% more than traditional banks is sure to draw people in, and crypto lending is one of these DeFi features that investors can leverage to improve their returns.
There are a lot of protocols for crypto lending, and the more popular ones are AAVE, Compound, and Maker. The reason many of them offer yields in stablecoins is to remove the risk of impermanent loss. There are many less-known protocols that offer higher returns, but you should be careful to not end up in an illiquid market.
These loans are not only crypto to crypto, and we have seen many traditional institutions like Vesta Equity receive USDC in a bid to encourage more crypto users to own houses. Several others use bitcoin and the details of the transactions can be seen on the BTC explorer.
This is just one of the many experimental surveys done with cryptocurrencies and real estate.
Crypto farming
The DeFi space is oiled by crypto farming, and the liquidity pool is where other features like staking and loans take their source from. Due to the unpredictable volatility in the crypto space, and to avoid losses due to pooling money in a liquidity pool, this process is done with stablecoins. Alternatively, you can do it with Ethereum on Redot crypto exchange.
Irrespective of the market cycle, yield farming is important for DeFi to function, and integrating both centralized and decentralized exchanges has enabled different pools to be liquid.
Returns could rise as much as 20% APY on various liquidity pools
No-loss token offerings
Apart from lending and yield farming, another way you can earn money in a bear market is through joining a no-loss token offering launch.
The no-loss token offering is very similar to crypto staking as it allows investors to invest in the integrity of any platform they are interested in with an almost-zero risk of losses. The tokens will be locked up as collateral and at the maturing date, they get minted tokens of the lunched project. The capital plus profit is then sent back to the investor.
Another major way through which no-loss token offering can be popular is through Lockdrops. The launch of the Mars protocol gave birth to the Lockdrops
If you are confused, you need not be. You can view lock drops like Airdrops but with little difference. Airdrops just give users free crypto for little marketing engagement or for doing nothing, while for lock drops, there is at least a level of financial commitment from the token investor. Lockdrops have also been referred to as airdrops because they technically don’t help projects raise funds, rather they require some level of commitment for future use from token recipients.
For example, Astroport put the lockdown strategy to use when it was sourcing funds. It created a means for contributors to pool liquidity in pairs to get higher returns. Once the crypto is locked, the users get a one-time lockdown which they can use to do a wide variety of things.
In a bid to improve the alternative foregone, other incentives are given to liquidity providers. These incentives could range from reduced trading fees, or a portion of the trading fees as returns.
Upon expiry of the lockdown period, the liquidity providers can remove their crypto. If you are looking for a way to profit from newly launched projects, the lock drop might be what you are looking for.
