A Simple Strategy That Will Make Money In The Crypto Bear Market

This post will teach you a simple strategy you can apply within 10 minutes. You don’t even need any extensive knowledge. Moreover, it’s probably the best way to earn money during the crypto bear market.

Here Comes the Crypto Bear Market

With Bitcoin sliding below $20,000, even the last bull standing must admit that the bear market has finally arrived. Moreover, this bear market won’t be a quick kiss when looking at global and economic indicators. On the contrary, the likeliness of a lengthy multi-months or even year bear market is relatively high.

But what does a bear market actually mean? The Securities and Exchange Control Commission defines a bear market as a period of at least two months when a broad market — measured by an index such as the S&P 500 — falls by 20% or more.

Of course, 20% is nothing when it comes to Bitcoin. However, the general definition stays the same: A bear market describes an intensive downward market trend. In cryptos, a decline of 80%-90% (measured from the last all-time high) is unusual. In the previous crypto bear market, Bitcoin fell from ~20,000 dollars to ~1,500 dollars.

But Wait, crypto bear markets aren’t solely about declining prices.

When people talk about crypto bear markets, they often have the above picture in mind—dramatically dropping prices and assets that lose more than 80% of their value. However, declining prices are only one part of bear markets. On the other side, the main characteristic of a bear market is lengthy (monotonous) sideway movements (often after a sharp decline).

Here’s just one example from the last bear markets (if you do some analysis, you will find dozens): Bitcoin traded between $3,000 and $4,000 for almost five months between November 2018 and April 2019. And before that, Bitcoin traded between ~6,100 dollars and ~6,300 dollars between early September and November 2019.

Accordingly, besides one quick drop in November, Bitcoin ranged sideways for nine months from September 2018 until May 2019.

Making money in the crypto bear market means tackling a sideway-moving market

So why am I telling you all this? Because it is essential to understand the market before applying our simple strategy to make money in bear markets. Based on the above explanations, we need a strategy to make you money during volatile sideways movements.

Hello Grid Bot!

Luckily there’s a tool available that meets precisely our requirements. Let me introduce Automated Grid Bots!

If you haven’t heard about Grid Bots, here’s a quick explanation: Grid bots are a simple and basic strategy for crypto trading: Buy low and sell high. Therefore, technically the bots place buy and sell orders based on a specific lower and upper boundary. Suppose the crypto token price jumps below/above the specified limit. In that case, it will not execute any more buy orders (In case you want to know more about Grid Trading Bots, check out this article: Automated Grid Bots — 10 Things You Should Know Before Investing!)

As a result, grid bots generate the highest results in volatile sideways movements. Well, that’s exactly what the crypto bear market is about!

How to use Grid Bots

Grid Bots are available at all major crypto platforms. Personally, made very experience with Binance Bots and Pionex Bots. Overall, Binance has achieved slightly better results for me. On the other hand, Pionex bots are much more handy and intuitive to use. Oh, by the way, in case you want to try Binance but don’t have an account yet, you can use this link to get a $100 cashback voucher on Binance.

Overall, setting up a grid bot is pretty straightforward. First, you must select the token you want to trade. Afterward, you can set the upper and lower boundaries. The boundaries define the area your grid bot trades in. Therefore, the limits also depend on the duration you want the bot to run. Finally, you must specify the number of grids you wish to trade.

The shortcut to making money in the crypto bear market: Copy successful grid trading bots

If you want to set up your bot even easier, you can copy running bots. This can be achieved with just a few clicks. However, please don’t copy blindly based on the shown APRs.

Unfortunately something I hear very often. People see screenshots from other traders’ grid bot results that show high profits and directly copy the bot. Most often, that’s a bad idea! In 99%, the results are not generated by the grid bot mechanism but by a price pump. However, most often, a dump follows the pump. So you copy the bot, but your grid bot loses money instead of making 100% profit! Again: Evaluation is critical!

How much can you make with automated grid trading bots?

Of course, I can’t give you an exact answer since it depends on many factors: Chosen token, number of grids, market development, etc. Moreover, you will have days with high profits but also some gloomy days. However, a good bot achieves 0.5% to 1% daily profits in the long run.

Summarized: How to make money in the crypto bear market

Despite declining prices, lengthy sideways movements are the main characteristic of bear markets. Automated grid trading bots work best in such an environment since they benefit from volatile price movements based upon a stable average. Grid bots can be set up within a few minutes and are available on all major platforms, such as Binance or Pionex. Overall, grid trading bots should generate a daily return of 0.5% to 1% on average.

This post is not financial advice!! DYOR!!