Hello Crypto Bear Market
Well… This has been a crazy week. I hope you are doing ok out there! In today’s issue I wanted to start by talking about how to keep making money in a down market. A topic which is probably on all of your minds! Until we see a decisive trend change then we can assume that the bears are still in charge of the market. And I know, believe me I know, how much it sucks when a coin you bought is down 90%. This is however an all too common reality of the crypto market. While today has seen some green come into the market we are still quite far away from key moving averages. Bitcoin is $10,000 away from the 200 day moving average.
So here is how I intend to keep making money in the crypto bear market regardless of market conditions.
Crypto Bear Market Strategy #1: Yield farming
Would you believe that you can still easily get rates at over 100% on stablecoins right now? And probably can have dozens of options with rates at 40, 50 or even 60%??? What about triple digit yields on new coins? Yep, still happening. Although I am not in many of these higher yield farms for stablecoins, they are definitely out there. My stablecoin plays are mostly in farms like Convex Finance on Ethereum. BUT if you take the time to bridge over to other chains like Fantom then even OG defi platforms like Yearn Finance can give you HUGE rates on stablecoins! I will also continue to farm in ETH parity pools for coins like Illuvium, High Street, and Wilder World. These pools are riskier due to impermanent loss, but the potential for gains is very real too if you are willing to be in a farm for a longer period of time.
What will happen to yield farming during an extended bearish period? Well, to an extent no one really knows. Yield farming truly only began in 2020. The best reference we have is the bearish period of 2021. On the one hand people may exit farms and cash out and leave the market meaning that there could be less competition for yield. On the other hand, falling asset prices will likely lead to a big reduction in APYs that are often calculated on a dollar basis.
***Note: Staking APYs will stay the same as they come from a set release of coins on the network. One of the biggest risks with yield farming IF we get an extended bearish period is that the coins you are farming could totally collapse and those high APYs now could result in basically nothing later and you could be exposed to crushing impermanent loss.
For a list of some of the best returns on your stables check out our article: Getting The Best Return on Stablecoins
Crypto Bear Market Strategy #2: Lending
Lending Is a “safer” place to park your money in crypto. Popular platforms like Celsius, Blockfi, and Nexo give decent rates of return. Nothing compared to defi rates mind you, but the risk profile is also a lot different. That is not to say that centralized lenders have no risk, they certainly do, but it is lower compared to many of the defi platforms people are using.
We can have a similar conversation here to farming. Many of the big lenders have never really been through a long bear period, although most did start during such a period. Not all lenders may make it long term.
Crypto Bear Market Strategy #3: Gem Hunting
This is a well established route to crypto riches and an area that has helped me get some of my biggest…
