Make $25/Day Passive Income in a Bear Market

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bear markets are tough but that doesn't mean you can't make money you just need to tweak your strategy and 25 to 50 in passive income daily can be yours first off stop trying to short crypto it's just too hard to get it right trying to short crypto while the markets are down or buying at all-time highs are exactly what the market wants you to do and it isn't likely to make you money whenever bitcoin takes a tumble lots of questions crop up about whether it's actually a bubble or whether crypto in general is some kind of sleeper cell elaborate scam and you know why because people click on it and it makes media companies and youtubers money there's an endless supply of arguments on both sides and the truth is no one really knows what's going to happen next this is because we're just all oblivious apes swaying in the market wins so we need strategies that can earn us money even when the markets are leaving us to sit on the bench so at the beginning of this video i said you probably shouldn't short crypto and that's still technically true but there's one strategy that automatically balances long and short positions making it very very hard to lose money on your investment while kicking you out some passive income at the same time that's using spot futures arbitrage bots and trust me it's not as scary as it sounds i've actually been testing out a few of these bots myself to see what is possible to earn in a bear market i did this because a tech savvy friend of mine sent me a screenshot of his bot and how over 400 days the average apr is 27 so that was enough for me to learn literally everything i could about these bots so allow me to summarize using bots on pinex which i'll have linked in the description you can basically split a buy between long and short positions let's say you invested one thousand dollars the bot would take the crypto of your choice put five hundred dollars into a long position and five hundred dollars into a short position so say if bitcoin goes up in price your long position goes up and your short position goes down the result is your one thousand dollars never goes much above or below that starting investment amount this strategy basically insulates you from market movements well the bot works to earn you money but of course that in itself doesn't make you any money that's like betting 100 for and against the exact same basketball team not a great way to make money but here's where it gets interesting a spot futures arbitrage bot earns profit from something called a funding fee or funding rate these are fees paid to investors as an incentive to move their capital into either long or short positions this is to ensure that the futures and spot prices for an asset stay in line it's really no different than a company lowering its prices because they ordered too much inventory funding fees often change based on market sentiment i've seen rates as high as 1.2 percent daily during bull runs which is absolutely insane but bull runs don't last forever and neither do those insane rates however because this strategy is market neutral you can still make money in bear markets just not quite as much money average returns seem to be somewhere between 15 and 50 percent annually in my test during a severe downturn i was making about five percent apr in the worst of times which of course isn't an insane return but this is on nearly zero risk and you'll be one of the few people who are actually making money during the dip then once markets turn bullish again you'll see that apr shoot way up beyond 50 so let's assume an average yearly return of 27 based on that screenshot that was sent to me at that rate it would take an investment of thirty four thousand dollars to make twenty five dollars a day in passive income and of course that could be scaled up or down an investment of fourteen hundred dollars at twenty seven percent apr would get you one dollar per day passive income the app that i used for this was pinex if you use the link in the description you'll save big on trading fees now the next strategy to profit in a bear market has to do with a smarter way to buy the dip now trigger warning this uses a bit of technical analysis which if you aren't familiar you can think of technical analysis kind of like astrology for guys and well i'd never bet the farm on ta there are there are tools here that can give us some insights one of my favorite is the relative strength index or rsi this can give you more information on when may be the best time to buy the dip rsi is pretty easy to find here you can see the candlestick chart for luna select the indicators on the top right search for rsi and it shows the purple line on the bottom beneath the candlestick chart that is rsi under normal market conditions when the rsi dips below 30 this means an asset is oversold and may be due for an increase in price the opposite is true for when the rsi is over 70 the price is more likely to decrease an exception being when mercury is in retrograde i'm just kidding i'm totally kidding our site doesn't use any black magic it just measures the magnitude of price changes over time anyways you can use this to help find a good time to buy one strategy is to use the rsi divergence strategy here we need to compare price trends and rsi trends and find where these two go in opposite directions typically rsi follows price movements but on rare occasions it doesn't and a trend reversal is more likely to happen we can see an example of this on trading view line a traces a downwards trend in bitcoin's price well the rsi in the same period moved upwards and in the days that followed we saw a reversal and the prices moved back up now line b is a little bit trickier to spot but the same holds true at the point that price and rsi diverge bitcoin hit its relative high and took a dive in price in the days after now what i want to point out here is that there are tools that can help you take a more measured approach to buying the dip and if you don't want to deal with looking at charts there's nothing wrong with simply dollar cost averaging over time well just leaving some cash on the side now allow me to show you what to do with that cash that you have sitting on the sidelines to earn you even more money of course none of this is financial advice the thing is bitcoin has a gravitational pull and when bitcoin is going down you bet it's taken just about everyone else with it that is unless you are a stable coin stable coins are kind of like digital cash that allow you to act like a bank earning money on your money like a bank does this means regardless of market conditions you can get safe returns of 8 to 20 percent apy now sure this isn't 83 000 apy but here you can be sure that the coins that you lend are still worth a dollar while they're earning you interest now the first step here is deciding which stable coin you like best and how tech savvy you are the most popular staple coins to lend are usdt dye usdc and ust is an up and comer in the space once you know the stable coin you want to go with you can then choose a service now i have a video that completely breaks this down i'll leave in the description so i'm not going to go crazy in depth here but i'll tell you the strategy that i take i lend a chunk out on kucoin here you can see i actually have made more than 24 thousand dollars in interest lending on this platform in less than a year and one note here is well kucoin has the best usdt lending rates on average the rates can sway pretty dramatically depending on the market my average over the last nine or so months has been about 16 apy which is awesome in my opinion and i recently started lending out ust as well on the anchor protocol this currently pays out just about 20 apy which is amazing now as great as the rates are here this takes a higher level of crypto know-how and there's a little bit of extra risk as well so anchor is decentralized you need to have an understanding of how to use dapps and set up an additional wallet and ust the stable coin here is algorithmic and backed by crypto and a smart contract not one-to-one with us dollars like the stable coin die for example i'm working on a long-term experiment that goes much more in depth on how the anger protocol works and whether those rates are sustainable so just make sure you're subscribed so you don't miss it when i drop that video so what do you need to make 25 dollars a day using my personal experience and getting around 16 apy an investor would need to put up 57 000 dollars a day in passive income would require an investment of about eleven thousand five hundred dollars really not bad considering this is one of the lowest risk strategies for making passive income lending has been my crush when it comes to crypto income and that means you know that means if lending is my crush then staking would probably be my side check so so let's do an honorable mention for staking which isn't the best possible method for passive income in a bear market but it has its place so when i think of staking in a bear market i think it's wonderful if you're staking a crypto that you plan to hold long term if you plan to hold long term there's really no downside to staking you can earn an extra 4 to 12 percent on your crypto but of course you are still subject to the crypto you're holding potentially going down in price and the problem is when prices go down so do your staking rewards in relative dollars so here's what i mean let's say you're staking a crypto making 10 us dollars a day the crypto has staking rewards of percent so that means you have thirty six thousand five hundred dollars invested if that crypto tanks forty percent not only does your thirty six thousand dollar nut decrease but so does your ten dollars a day in stake in rewards because staking rewards are paid out based on current value this is why i think if you plan on holding that crypto long term anyways you might as well stake it but if you're looking to just make passive income one of the other options on this list is probably better now let's cover a more experimental method just a few days ago cointelegraph came up with a report on their proprietary algorithmic indicator called the vortex score it's available to pro subscribers and while this isn't an investing instrument like a bot you can use the scores associated with some cryptos to make some well-timed investment decisions and the proof is one strategy called buy 90 cell 70 was up 15 in january during a very large downturn so let's back this up just a little bit the vortex score is calculated by an algorithm that factors in as much historical data as possible and then draws correlations to movements in price that come soon after it looks at things like twitter activity trading volume recent price movements and social sentiment and the resulting score tells us how confident the algorithm is that the asset is either bullish neutral or bearish and then it goes even further by factoring in how consistent the crypto's behavior is in relation to its history a score of 50 is neutral which means that the vortex score doesn't really see any correlation but a more rare score of 90 indicates that the observed setup of trading conditions appeared before a dramatic spike in price now there are many test strategies using vortex but the only one that was in the green for 2022 is by 90 cell 70.

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So using this approach you'd basically buy your asset if and only if it attains a score of 90 or higher and then sell as soon as it dips below a 70. but of course we can't bank on this 100 even coin telegraph themselves issue a disclaimer whenever they report on how successful these strategies are one they don't account for liquidity or market depth on the exchange that you might be using and two they don't account for the trading fees that you'd find yourself paying which could wipe out a majority of your gains so i found this an interesting algorithm to keep my eyes on but again i won't be betting my life savings on it now there's a reason for the saying everyone's a genius in a bull market because it's simply the easiest time to make money it's literally harder to be wrong in a bull market but it's not always sunshine and roses so it's important to be a well-rounded investor and understand opportunities that can be taken in even the worst markets and as you can see it's totally possible to make great passive income whether crypto is up 20 or down 40 now from here i would recommend this video on screen that talks about another exciting way that you can make passive income with crypto and i want to thank you so much for watching and i hope you have a profitable day

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