Time to cheer up-Bear market strategies to make money in Defi

TheRedKnight
4 min readJun 18, 2022

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Even retail and the big guns have lost billions in this bear market, which has been going on for a long time now.

Bear markets, on the other hand, are here for a reason: leverage and greed must be eliminated. It will be up to the bear market to decide which projects will survive in the next market cycle.

If you’re still in the game, you’ll be able to buy tokens at a lower price during bear markets, which will help you in the upcoming upswing cycle.
Focus on capital appreciation, rather than reliving the past where your money was lost.

Bear or Bull market will provide if you look hard enough

Let's go through some strategies you can work on in these market conditions with minimal risk-to-reward ratio.

  1. How low can it go?
  2. Shorting
  3. Short farming
  4. Leveraged short farming

Can it go any lower?

My sincere response is, “I have no idea!”

In the past six months, the market has wiped out nearly all of the gains made over the past two years. It’s not a good idea to go bearish to the hilt right now.

However, given the current state of the economy, I remain convinced that a downward trend is still possible. Before the uptrend, at the very least, a long sideways market is possible. A V-shape recovery isn’t possible right now. It’s not a good idea to start investing money right now.

Because of this, we should begin making preparations and increasing the return on our capital as soon as a reversal is confirmed. Let’s take a look at a few tactics we can use to see some results.

Shorting

You borrow an asset and sell it instantly; that's how shorting works.
For example, you provide 4000$ worth of USD and borrow 2000$ at the price of ETH, which is now trading at 1 ETH= 2000$. You sell your 1 ETH instantly in the market for 2000$.
Let's say the price of ETH goes down by half. Now, if you buy back the 1 ETH at 1000$ and pay back your loan, you can pocket the remaining…

TheRedKnight

Anything Related to crypto is always under my radar. But none is financial advice. As a guy who dreams decentralized world, let my face remain unknown.