A Growing Trend
Since the pandemic, remote and online work has become more prevalent. Many who were unable to work began exploring the world of Cryptocurrency. Fortunately for them, it was the perfect time to jump into the market. Those who experienced results far beyond their expectations decided to move into Crypto full-time. Having a Crypto-based business in a bull market is fantastic. However, a bear market is another story.
Most newcomers underestimate the power of a bear market. Historically, altcoins lose 95% of their value. Unable to fight off the bear, they are dragged into a cave of deep darkness, a cave some never escape from. A bear market is robust and should not be underestimated. Bear markets always return, and often when nobody is expecting it. Regardless of your business model, a bear market will significantly affect your earnings.
Bear market immunity is the most critical aspect of any Crypto income model. Achieving complete immunity is extremely difficult. However, strategies must be decided upon and established before a bear market. Market participants need to be proactive and not reactionary in their approach. This will make all the difference. However, many only respond once a bear market is in full swing.
Preparing For A Salary Cut
A bear market affects not only investment strategies but also the earnings of content creators. Bloggers and YouTubers will also see their earnings slashed by 90%. One of the most effective strategies is to shift investment capital into stablecoin protocols such as HBD, which offers an attractive APR. This is currently 15%, which is rather significant for a stablecoin.
One of the most attractive features of HBD is that it is not in the form of LP tokens, which means there is zero chance of impermanent loss. The only market-related loss is volatility associated with the asset. Stablecoins do incur short-term fluctuations. However, they usually return to their peg within a very short timeframe, creating an opportunity for trading.
When a stablecoin dips, it’s almost guaranteed to bounce back, creating a relatively safe trading environment for patient traders. Content creators, on the other hand, should look at capturing the value of their earnings during a bull market. This can be distributed as “income” in a bear market when earnings are almost non-existent. Creativity becomes an imperative aspect of survival during a bear market.
Anyone looking to earn a full-time income from Crypto should consider creative ways to reduce the impact of bear markets and bearish seasons. One should be ready to flick a switch that automatically changes the mode of their income model. If this has not been planned, the likeliness of unnecessary losses is significantly increased. The shift must be immediate and concise.
Stability & Support
In preparation for a bear market, selling altcoin-based and DeFi-based tokens is the first and foremost course of action. Having a few dollar-denominated Crypto-based income models is another measure Cryptoneurs can take to secure stability and ongoing income generation. This can be done through various crypto-related affiliate commissions and other dollar-denominated platforms.
Content creation is another income generation sector that, though affected by a bear market regarding views and reach, is preserved to some extent through dollar-denominated earnings. WEB3 opportunities will, in most cases, be massively impacted by a bear market. Once again, diversification is an essential measure regarding support and income stability.
Using Crypto income to establish alternative income models is another way to protect your Crypto-related business. In other words, these income sources are made possible and empowered by Crypto-related income. Expanding one’s reach and boundaries can be a lucrative and rewarding decision.
By reducing the pressure on Crypto-related earnings and adding alternative models, a Cryptoneur can enhance their business, ultimately providing additional means and support to survive bearish seasons. Expanding operations and efficiency is always a good thing when undertaken appropriately.
Final Thoughts
Preparing for bearish seasons is not being bearish; it’s being realistic. It’s like having a safety net; you don’t plan or intend to fall. However, if you do, a measure is in place to catch and preserve your life. Permabulls always get REKT, as do permabears. On the other hand, realists are prepared for whatever the market throws at them. Make sure you are always well prepared! See you next time!
Sapphire Crypto 