Strategies for Profit in a Bearish Market: Insights for Crypto Enthusiasts

By: crypto insight|2025/11/27 09:00:08

Key Takeaways

Professional investors leverage distinct strategies to continue profiting even when the market is declining, contrasting with panic sellers and over-leveraged amateurs.
Long-term holding of top crypto assets like Bitcoin or Ethereum can generate revenue through staking and DeFi lending, offsetting potential losses from market volatility.
Earning through Yield Farming, providing liquidity, and engaging in arbitrage helps exploit temporary market inefficiencies and volatility for significant gains.
Content creation and specialized consulting open non-traditional revenue streams that align with the industry’s need for market expertise and innovative thought leadership.
Adapting strategies to market conditions while avoiding the crowd mindset is crucial for sustained success and leveraging one’s skillset effectively in crypto investments.

WEEX Crypto News, 2025-11-27 08:58:26

Insights into Navigating Market Downturns with Profitable Techniques

In the volatile world of cryptocurrency, market downturns often incite panic among investors, prompting them to either hastily sell off assets or risk heavy leverage to recoup losses. However, veteran investors strategically shift tactics, focusing on sustainable cash flow and building strong market positions. This article delves into seven professional strategies that allow for consistent profits even when the market is bearish, emphasizing the importance of mindset and methodology over merely reacting to price fluctuations.

Leverage Your Cryptocurrency Portfolio: The Power of Staking and DeFi

If you plan on holding digital assets such as Bitcoin, Ethereum, or other top-tier cryptocurrencies, consider leveraging them to generate revenue. Staking these assets or engaging with DeFi lending platforms such as Aave or Compound can yield substantial returns. During bearish markets, the focus should be on stable, risk-averse strategies rather than speculative trading. The passive income obtained through waiting for market corrections acts as a buffer, cushioning the impact of price drops. The key lies in selecting only top-tier assets and robust financial protocols to minimize risk exposure. Avoid falling into the trap of enticing promises of high annual yields from questionable tokens, as these often lack sustainability and reliability.

Yield Farming and Airdrops: Tapping into Hidden Market Potential

Yield farming players who succeed during market downturns focus their efforts on specific, high-potential projects. By concentrating on protocols that show potential for token issuance and have proven application scenarios, investors can earn significant rewards. This method is effective because it allows investors to pick up genuine airdrop earnings, which could outweigh months of minor trading profits, even as the competition dwindles. Accuracy and commitment are crucial—meticulously tracking and retaining minimal but regular engagement with relevant projects ensures these gains are realized.

Exploring Market Efficiency: Arbitrage and Request for Quote (RFQ)

Arbitrage presents itself as an effective technique in less efficient or volatile markets. By capitalizing on price discrepancies across various exchanges, investors can sidestep the need to predict market directions entirely. Such disparities are often temporary but lucrative. By tracking these opportunities across a few centralized (CEX) and decentralized exchanges (DEX), even small investors with modest capital can profit. Engaging in this requires a detailed understanding of the market and a fast response to shifting conditions, which can be assisted through automated tools and bots, maximizing the chance for profit without needing to speculate the market’s direction.

Provide Liquidity with Caution: Strategic Engagement with Decentralized Markets

Liquidity provision in decentralized markets can be fraught with risk but also potential rewards. Professional investors treat this as a business rather than a gamble. By supplying liquidity in well-orchestrated decentralized exchange pools, such as those operating under Uniswap’s systems, you can earn transaction fees and sometimes additional incentives in the form of tokens or credits. The liquidity should focus on stablecoin pairs or highly correlated asset pairs to reduce risks, with a keen eye on balancing impermanent loss against earned fees. Professional strategies involve understanding these risks and modifying positions to protect and enhance gains when downward trends threaten asset stability.

Light Market Making: Capitalizing on Market Inefficiencies

Not everyone needs to be a vast market player like Jump Trading to benefit from market-making activities. A systematic approach to simultaneously placing buy and sell orders around the current price can capture bid-ask spreads and earn fees, enhancing market depth. In volatile and less liquid markets, widened spreads present earnings opportunities when others react emotionally to market trends. Limiting strategies to well-known liquid coins or indices avoids unnecessary exposure to thinly traded ghost coins—a critical consideration for maintaining value and reliability in volatile markets.

Create Content and Consultancy: Navigating Through Market Fear with Clarity

With market sentiment shifting from hopeful investments in memes to seeking rational guidance, producing valuable content presents a viable income strategy. Engaging through tweet threads, newsletters, video analyses, or podcasts delivers needed insights to a starved audience. Monetizing this effort through sponsorship, memberships, and consultation taps into the demand for expert advice. Focusing on niche areas like AI combined with crypto, tokenization, or perpetual contracts supplies audiences keen to benefit from authentic and actionable insights.

Offer Consultancy and Monthly Advisory: Monetizing Expertise and Influence

If you are adept at maintaining clear views and expressing them, consulting offers an additional profit avenue. Teams and agencies seeking narrative crafting, token modeling, or marketing guidance are willing to compensate those who bring deep industry understanding rather than simply marketing aptitude. This entails conducting project analysis, supporting visionary presentations, or strategizing community engagements. Creating value in these sectors moves you from a transactional to an influential market player, cementing your role as an indispensable resource in the crypto ecosystem.

Professional Outlook During Market Downturns

During bearish market stretches, seasoned professionals refrain from frantic overtrading or pining for miraculous market reversals. Instead, they recalibrate their strategy toward leveraging market activity for gains rather than solely depending on pricing directions. Essential skills that amplify future potential take center stage, redefining roles not as traders stuck in the relentless waves of price surfaces but as intrinsic components of market structure and foundations.

Choosing two or three of these strategies and enduring them over time focuses efforts on systems and highly intentional actions, grooming talent for the forthcoming bull markets. This dedication and strategy reveal not only the tenacity to succeed but a mastery over emotional impulses that often derail those unable to harness disciplined methodologies.

FAQ

What are the primary strategies for profiting in a bearish crypto market?

Primary strategies include leveraging your portfolio through staking and DeFi, engaging in yield farming, exploiting market inefficiencies through arbitrage, providing liquidity with caution, engaging in light market making, content creation, and offering consultancy services.

How does staking help mitigate losses in a declining market?

Staking allows asset holders to earn additional income by participating in network validation, offering a return on investment irrespective of market downturns, thereby softening the impact of price volatility.

Why is yield farming considered a stable income channel?

Yield farming enables investors to earn non-token rewards like points or experience by participating in certain blockchain protocols, maintaining earnings potential even when token prices drop.

How does arbitrage work as a profit strategy?

Arbitrage involves buying and selling the same asset across different platforms to exploit price discrepancies, ensuring profits without needing to forecast market trends.

What makes content creation a viable income source in downturn markets?

As investor focus shifts towards strategic insights, content creators offer needed guidance, which can be monetized through sponsorship, memberships, and expert consultations, tapping into a demand for clarity amid market turmoil.

Over the past 24 hours, the crypto market has shown strong momentum across multiple dimensions. The mainstream discussion has focused on Coinbase's official entry into the prediction market through the acquisition of The Clearing Company, as well as the intense controversy within the AAVE community regarding token incentives and governance rights.

In terms of ecosystem development, Solana has introduced the innovative Kora fee layer aimed at reducing user transaction costs; meanwhile, the Perp DEX competition has intensified, with the showdown between Hyperliquid and Lighter sparking widespread community discussion on the future of decentralized derivatives.

I. Mainstream Topics

1. Coinbase Acquires The Clearing Company, Officially Entering Prediction Market

This week, Coinbase announced the acquisition of The Clearing Company, marking another significant move to deepen its presence in this field after last week's announcement of launching a prediction market on its platform.

The Clearing Company's founder, Toni Gemayel, and the team will join Coinbase to jointly drive the development of the prediction market business.

Coinbase's Product Lead, Shan Aggarwal, stated that the growth of the prediction market is still in its early stages and predicts that 2026 will be the breakout year for this field.

The community has reacted positively to this, generally believing that Coinbase's entry will bring significant traffic and compliance advantages to the prediction market. However, this has also sparked discussions about the industry's competitive landscape.

Jai Bhavnani, Founder of Rivalry, commented that for startups, if their product model proves to be successful, industry giants like Coinbase have ample reason to replicate it.

This serves as a reminder to all entrepreneurs in the crypto space that they must build significant moats to withstand competition pressure from these giants.

2. Kalshi Launches Kalshi Research and Integrates BSC Network

Regulated prediction market platform Kalshi launched its research arm, Kalshi Research, this week, aimed at opening its internal data to the academic community and researchers to facilitate exploration of prediction market-related topics.

Its inaugural research report highlights Kalshi's outperformance in predicting inflation compared to Wall Street's traditional models. Kalshi co-founder Luana Lopes Lara commented that the power of prediction markets lies in the valuable data they generate, and it is now time to better utilize this data.

Meanwhile, Kalshi announced its support for the BNB Chain (BSC), allowing users to deposit and withdraw BNB and USDT via the BSC network.

This move is seen as a significant step for Kalshi to open its platform to a broader crypto user base, aiming to unlock access to the world's largest prediction market. Furthermore, Kalshi also revealed plans to host the first Prediction Market Summit in 2026 to further drive industry engagement and development.

3. AAVE Token Incentive Controversy Persists as Founders and Whales Increase Holdings Against the Market Trend

The AAVE community recently engaged in heated debates around an Aave Improvement Proposal (AIP) titled "AAVE Tokenomics Alignment Phase One - Ownership Governance," aiming to transfer ownership and control of the Aave brand from Aave Labs to Aave DAO.

Aave founder Stani Kulechov publicly stated his intention to vote against the proposal, believing it oversimplifies the complex legal and operational structure, potentially slowing down the development process of core products like Aave V4.

The community's reaction was polarized. Some criticized Stani for adopting a "double standard" in governance and questioned whether his team had siphoned off protocol revenue, while others supported his cautious stance, arguing that significant governance changes require more thorough discussion.

This controversy highlights the tension between the ideal of DAO governance in DeFi projects and the actual power held by core development teams.

Despite governance disputes putting pressure on the AAVE token price, on-chain data shows that Stani Kulechov himself has purchased millions of dollars' worth of AAVE in the past few hours.

Simultaneously, a whale address, 0xDDC4, which had been quiet for 6 months, once again spent 500 ETH (approximately $1.53 million) to purchase 9,629 AAVE tokens. Data indicates that this whale has accumulated nearly 40,000 AAVE over the past year but is currently in an unrealized loss position.

The founder and whale's increased holdings during market volatility were interpreted by some investors as a confidence signal in AAVE's long-term value.

4. Top Articles: DeFi Curators and Ethereum Annual Summary

In this week's top article, Morpho Labs' "Curator Explained" detailed the role of "curators" in DeFi.

The article likened curators to asset managers in traditional finance, who design, deploy, and manage on-chain vaults, providing users with a one-click diversified investment portfolio.

Unlike traditional fund managers, DeFi curators execute strategies automatically through non-custodial smart contracts, allowing users to maintain full control of their assets. The article offered a new perspective on the specialization and risk management in the DeFi space.

Another widely circulated article, "Ethereum 2025: From Experiment to Global Infrastructure," provided a comprehensive summary of Ethereum's development over the past year. The article noted that 2025 is a crucial year for Ethereum's transition from an experimental project to global financial infrastructure. Through the Pectra and Fusaka hard forks, Ethereum achieved significant reductions in account abstraction and transaction costs.

Furthermore, the SEC's clarification of Ethereum's "non-securities" nature and the launch of tokenized funds on the Ethereum mainnet by traditional financial giants like JPMorgan marked Ethereum's gaining recognition from mainstream institutions. The article suggested that whether it is the continued growth of DeFi, the thriving L2 ecosystem, or the integration with the AI field, Ethereum's vision as the "world computer" is gradually becoming a reality.

II. Mainstream Ecosystem Updates

1. Solana: Launches Kora Fee Layer and propAMM Data Research

The Solana Foundation engineering team released a fee layer solution called Kora this week.

Kora is a fee relayer and signatory node designed to provide the Solana ecosystem with a more flexible transaction fee payment method. Through Kora, users will be able to achieve gas-free transactions or choose to pay network fees using any stablecoin or SPL token. This innovation is seen as an important step in lowering the barrier of entry for new users and improving Solana network's availability.

Additionally, a deep research report on propAMM (proactive market maker) sparked community interest. The report's data analysis of propAMMs on Solana like HumidiFi indicated that Solana has achieved, or even surpassed, the level of transaction execution quality in traditional finance (TradFi) markets.

For example, on the SOL-USDC trading pair, HumidiFi is able to provide a highly competitive spread for large trades (0.4-1.6 bps), which is already better than the trading slippage of some mid-cap stocks in traditional markets.

Research suggests that propAMM is making the vision of the "Internet Capital Market" a reality, with Solana emerging as the prime venue for all of this to happen.

2. Perp DEX: Hyperliquid vs. Lighter Competition Intensifies

The competition in the perpetual contract DEX (Perp DEX) space is becoming increasingly heated.

In its latest official article, Hyperliquid has positioned its emerging competitor, Lighter, alongside centralized exchanges like Binance, referring to it as a platform utilizing a centralized sequencer. Hyperliquid emphasizes its transparency advantage of being "fully on-chain, operated by a validator network, and with no hidden state."

The community widely interprets this as Hyperliquid declaring "war" on Lighter. The technical differences between the two platforms have also become a focal point of discussion: Hyperliquid focuses on ultimate on-chain transparency, while Lighter emphasizes achieving "verifiable execution" through zero-knowledge proofs to provide users with a Central Limit Order Book (CLOB)-like trading experience.

This battle over the future direction of decentralized derivatives exchanges is expected to peak in 2026.

Meanwhile, discussions about Lighter's trading fees have surfaced. Some users have pointed out that Lighter charged as much as 81 basis points (0.81%) for a $2 million USD/JPY forex trade, far exceeding the near-zero spreads of traditional forex brokers.

Some argue that Lighter does not follow a B-book model that bets against market makers, instead anchoring its prices to the TradFi market, and the high fees may be related to the current liquidity or market maker balance incentives. Providing a more competitive spread for real-world assets (RWA) in the highly volatile crypto market is a key issue Lighter will need to address in the future.

The Secret Centralization Landscape of Stablecoin Payments: 85% of Transaction Volume Controlled by Top 1000 Wallets

Stablecoin payments have reached nearly half of total transaction volume, but are highly concentrated in a few institutional wallets: the top 1000 addresses contributed to about 85% of the transfer volume. While P2P transactions are numerous, their share of the total amount is significantly low.