Original text from CyrilXBT
Compiled by｜Odaily Planet Daily Golem (@web 3_golem )
When the market crashes, most people will do one of the following two things:
- Panic sell and then exit the market
- Go all in with leverage, trying to recover losses
But the approach of seasoned crypto veterans may be entirely different. They do not blindly engage in directional speculation; instead, they turn to repeatable cash flow and advantages.
The following 7 strategies can help you make money in a declining market like seasoned veterans, without needing to perfectly time the bottom.
Hold the assets you truly want and earn yields
If you plan to hold BTC, ETH, or other mainstream cryptocurrencies for the long term, why not let them earn yields for you?
Yield Channels
- Staking/Liquid Staking
- Blue-chip DeFi lending (Aave, Compound, etc.)
- Yield products with transparent terms from centralized exchanges
Why it works in a bear market
As long as you are willing to hold the assets long-term, volatility won't cause you significant losses. Instead of trading frantically during price fluctuations, it’s better to be patient, which can actually yield profits.
However, stick to investing in mainstream assets and top protocols, avoiding investments in tokens with unclear prospects to avoid being lured by double or triple-digit annual percentage yields (APY).
View yields as an extra reward rather than the core reason for holding assets.
Collecting airdrops
In a bear market, collecting airdrops is not just about randomly clicking on junk links; the target needs to be precisely identified.
Selection Criteria
- Protocols that may issue tokens
- Those that already have real users and support
- Prioritize active users over one-time "tourists"
Why it works in a bear market
Because even if prices drop, protocols still need users, and competition in a bear market actually decreases as most people lose interest.
The gains from a strong airdrop can exceed the profits from several months of small trades.
But focus on infrastructure and core DeFi (L2 layers, bridges, re-staking, wallets, etc.), and invest a small but stable amount of funds. You can use a simple spreadsheet to track your airdrop projects and reasons.
Remember, experts treat airdrops as a stable income stream, not a lottery ticket.
Price inquiry/arbitrage: Profiting from inefficient markets
If you are just profiting from price discrepancies, you don’t need to predict the direction.
How to arbitrage
Arbitrage means buying low in one marketplace and selling high in another. Request for Quote (RFQ) completes large OTC orders at a spread.
This strategy can range from simple CEX-DEX price discrepancies to more advanced cross-exchange arbitrage.
Simple version:
Track several trading pairs on 2-3 mainstream centralized exchanges and 1-2 decentralized exchanges. Pay attention to periodic 0.5-1% price differences and trade using low fees.
Advanced version:
Use bots or tools to alert you to price difference changes. Maintain reasonable trade sizes, focusing on execution speed and fees.
Why it works in a bear market
Volatility = frequent price discrepancies; panic actions create temporary price gaps between marketplaces and trading pairs.
You don’t need to guess “up or down,” but rather profit by filling in the gaps.
Providing liquidity (but avoid becoming exit liquidity)
If LPs provide liquidity carelessly, they often incur losses, while seasoned veterans view it as a professional business.
How to excel as an LP
Provide liquidity for automated market makers (AMM) like Uniswap, and choose stable trading pairs or related assets. You will receive trading fees and additional rewards (tokens/points).
To avoid liquidation, start with stablecoin trading pairs or highly correlated pairs (e.g., ETH-stETH, USDC-USDT).
Only use narrow fluctuations if you understand rebalancing; otherwise, keep the strategy simple.
If impermanent loss is always dominant, you need to change your strategy.
Why it works in a bear market
Even in a bear market, people still trade, and trading volume may surge.
If you strategically choose trading pairs, fees can offset losses from price fluctuations.
Think like a market maker, not like a gambler:
“Are the profits I gain sufficient to bear such price risks?”
Lightweight market making on a few trading pairs
You don’t need to be as aggressive as market makers like Jump; you just need to trade systematically.
Using grid trading
Grid trading involves placing buy and sell orders around the current price to earn the spread and fees.
Small accounts can operate manually or use simple grid bots, selecting 1-3 trading pairs you are familiar with.
If you don’t have familiar trading pairs, choose major currency pairs or large-cap stocks with strong liquidity, avoiding trading “ghost coins.”
Define your “holding range”: the maximum amount of assets you are willing to hold.
Keep the strategy simple; even basic grid trading can be profitable as long as your holding range and size are reasonable.
Why it works in a bear market
Markets with high volatility and low trading volume lead to wider spreads. Each time people buy across the spread or panic sell, they pay you fees.
This is not about predicting candlestick trends but about selling shovels during a gold rush.
Cultivating content and staying clear-headed while others panic
Attention never disappears. It simply shifts from “just posting memes” to “what should I do now?”
Cultivating content
Now is a good time to write long thematic posts, newsletters, and in-depth analyses. If conditions allow, you can also create YouTube shorts, spaces, podcasts, and other niche updates.
Choose a niche (AI, L2, RWA, contracts, re-staking, etc.) and plan to publish content, such as 2 thematic posts + 1 newsletter per week.
Focus on a clear framework and avoid hype; this is key to standing out.
Once you establish influence, you can profit through sponsorships, referral links, paid subscriptions, and consulting/advisory collaborations.
Why it works in a bear market
People urgently need clear information and filtering mechanisms. Crypto projects still need distribution, especially after the hype fades.
Your research already exists; content is just amplifying it.
In a bear market environment, signals are more important than dopamine; funds will flow toward signals.
Consulting and “think tank” advisory services
Once you can think clearly and express yourself effectively, people will be willing to pay for your services.
Possible services
- Helping teams build narratives, design token economics, or develop listing strategies
- Providing industry and project advice for funds/OTC platforms
- Supporting founders in market positioning, creating presentations, and developing community strategies
The key is to crystallize your past content as ideas and clarify your strengths (research, token economics, storytelling, business development, etc.), then start with small-scale, high-value deliverables, focusing on 1-2 quality clients over 10 time-wasting clients.
You can charge monthly consulting fees, growth revenue shares, or token allocations.
You will transition from “struggling traders” to operators earning from multiple participants.
Why it works in a bear market
Excellent teams do not stop developing in a bear market. When retail investors leave, they actually focus more on narratives, research, and strategies.
They prefer to pay those who truly understand the market rather than randomly finding an agency.
The bear market mindset of seasoned veterans
When the market crashes, seasoned veterans do not:
- Track every candlestick
- Triple their leverage
- Pray for a miraculous bottom
They tighten their strategies and ask themselves:
“How can I profit from actions, not just direction?”
“What skills will compound in the next cycle?”
“How can I transition from liquidity providers to infrastructure builders?”
If you want to avoid going with the flow, choose 2-3 of the above strategies and make small-scale investments with systematic management over several months rather than days.
This way, you can navigate this phase and position yourself advantageously when the next real trend emerges.
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