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Arnaud Deblander
Jun 29, 2022 10:00 AM

What are the opportunities to profit in the crypto bear market?

As you may have noticed, the crypto market is not at its best and has not been for some time and this is normal because we are in the middle of a bear market. If you have never heard this term (which is unlikely), don't worry! 

We're going to take a closer look at all of this together today and the opportunities that are available to you in such a market condition. Are you ready? Let's get started!

What is a bear market?

Most financial market professionals consider a bear market to be a decline of more than 20% since the last high or historical high. This may be true for the classical markets, but if we had to declare a bear market every time crypto loses more than 20%, we wouldn't make it.

A bear market is usually a break of the current trend, i.e. bullish, with a breach below a support level or a break of a moving average. To simplify, one could say that the emergence of a long-term downtrend is usually an indicator of a bear market.

Nevertheless, to summarize a bear market with graphic considerations seems to us, reductive. I don't claim that it is wrong. Generally, a bear market is strongly linked to market psychology, therefore to the behavior of investors or market players. If we had to give a good definition of a bear market, it would be a period of regular decline of financial assets during several months with a regrouping.

3 main characteristics of a bear market

Chart analysis allows you to know what a bear market looks like. Some of you will look for signals like the death cross (MM200 > MM50 in daily units) or the downward break of a long-term uptrend line.

More selling than buying sessions

It seems logical at the mechanical level with more sellers than buyers. Generally, a bear market starts with a simple downward correction with the consequence of a major technical signal to sell.

The emergence of negative emotions

A bear market fuels fear and panic. In contrast, you will have many bulls or optimists among financial market professionals who will defend that the correction, despite the confirmation of a major technical signal to sell, is temporary, excessive, or over. 

The truth is that this is an unintentional mind manipulation on their part, caused by their inability to accept the fact and it ultimately pushes you to buy when the bear market has not reached its full potential.

Technical rebounds of desperation

A bear market builds bull traps, i.e. technical rebounds that make you believe that things are moving forward for good. In reality, this is not just an illusion, because investors who were unable to sell their positions when the downward reversal signal was given, take advantage of it to do so at this time under slightly more favorable conditions.

How to profit from crypto in a bear market?

Just because a market is down doesn't mean you can't make money, and let's explore some solutions together.

Automatic Trading

Trading during a bear market is not easy, especially in the crypto market where losses can sometimes reach more than 10% per day during a bear market. If you don't have the skills or the time for it, you should seek out an automatic trading platform such as SuperBots. It’s easy to make profits during a bull market. However, with SuperBots, its 40,000 strong users are also making sweet profits during the current crypto bear market! 

Staking

Staking is the practice of tying up crypto assets for a long period of time and getting rewarded at the end of it. Although it is subject to risk, it is a fairly quiet way to invest, accessible to all budgets, and generally profitable. Indeed, you can store Ethereum or UBXT for example and this will bring you rewards but you will nevertheless be subject to market variations. 

NFT

You can also use NFTs to hedge against market fluctuations but be careful! In a bear market, all assets tend to fall as investors shy away from risk. Nevertheless, if you are interested in NFTs, the Bull & Bear Fight club will soon open its doors! 

Benefits of SuperBots, a unique Web3 project

With SuperBots, you can find all the above features in one place, on one platform; including the soon-to-be-launched NFT collection, Metaverse, and GameFi. 

The prowess of SuperBots’ algorithmic trading is a force to be reckoned with! Over April, May, and June 2022, when the crypto market crashed and left crypto holders and leverage traders in devastation, SuperBots investors and traders have been enjoying an average profit of +20%. Why is this so, you may ask? Well, the strategies used in the trading vaults are all adapted and they perform phenomenally regardless of crypto market trends. Take, for example, the WT BNB V2 which makes 290% more than the Buy & Hold over the last 6 months. It is definitely an investing and trading tool that you cannot afford not to add to your portfolio! 

The benefits of trading and investing with SuperBots are many. Besides superb performance that makes sweet profits (even during a bear market), Superbots doesn't charge any subscription fees and neither is there a minimum deposit required. It’s free to use and users only pay a performance fee of 15% when the trades are in profit. In fact, when there is a loss, users receive a virtual credit in UBXT, its native token that powers the SuperBots ecosystem, that they can use to pay for subsequent trading fees. 

Each of the Vault on SuperBots contains an algorithm and each vault is powered by a smart contract. As such, automation, security, and transparency are part of the features. If the above on performance fees and virtual credit sound complex to you to execute, don’t worry, the automation process takes care of all of that! 

Conclusion

It is indeed possible to make money in a bear market if you know what to do! Putting part of your capital into an automatic trading vault with a strategy that has been working for 4 years, backed by proven results, transparency and security is definitely part of it!

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  • crypto
  • bear market