Bull vs Bear Market: How to Earn Crypto During Bearish Market?

First published
February 4, 2022
Last updated
February 4, 2022

The terms “Bull” and “Bear” are common financial terms used to describe the price trends for a variety of financial markets and commodities, which includes cryptocurrency markets. This article will introduce you to these terms and how to continue earning crypto despite a bearish market.

Bull Market
Bull Market

What is Bull Market?

A bullish market is defined as a rising market with the trend of prices pointing upwards over a sustained period. Notable price swings upwards of 20% and above is also widely accepted as an indicator of a bullish market. Other factors of a bullish market include demand outweighing supply, optimistic investors and positive market sentiment. With rising confidence from investors, a positive feedback loop would occur which draws in more investors, pushing the prices higher.  

Unfortunately, bullish markets do not last and investors’ confidence can decline due to various reasons. These reasons can include negative news of stricter government legislations or unexpected situations such as Covid-19 pandemic. A sell-off may occur which may cause a bearish market.

Bear Market

What is Bear Market?

A bearish market is defined as a declining market with the trend of prices pointing downwards over a sustained period. Substantial price swings downwards of 20% and above is a widely accept figure to indicate a bearish market. Other indicators of a bearish market include supply greater than demand, pessimistic investors and negative market sentiment. With low confidence where investors believe that prices will continuously fall, a domino effect may occur as more and more investors sell to prevent losses.

Investing in a bearish market can be difficult especially for inexperienced investors. Attempting to predict when a bearish market ends or where the bottom is can backfire and hurt portfolios. There are many external factors to consider such as economic growth and international news. Instead, crypto investors should reposition themselves and look for other ways to invest and generate profits during a bearish market. 

3 Ways to Earn Crypto in Bear Market

Buy the Dip and Dollar Average Down

Buying the dip refers to entering the market when the prices are falling so that you can get profits when the market recovers. A buying strategy that you can utilise is dollar-cost averaging. This refers to purchasing Bitcoin or your chosen crypto on a weekly or monthly basis. An example is to spread out your purchases and buy $100 worth of crypto weekly or $500 monthly when you have a budget of $5000. This strategy allows you to buy crypto at different price levels and mitigates the risk of buying at a high price. 

HODL Your Bitcoin and Cryptocurrencies in Crypto Interest Account 

An alternative way to earn more Bitcoin and crypto is to HODL them in a crypto interest account. You can earn up to 12.73% APY on your crypto assets by simply depositing them in a platform like Hodlnaut. There are no lock-in periods or minimum deposits and interest is paid out weekly to your wallet. You can maximise the productivity of your crypto and earn passive income while letting them sit idle in Hodlnaut.

Consolidate Your Cryptocurrencies into Stablecoins

You can exit from potential losses by consolidating your crypto into stablecoins. Since stablecoins are not affected by a volatile market and have negligible daily fluctuation, they are a good option to turn to during tumultuous periods. When the market enters recovery, you can quickly convert back your stablecoins to your chosen cryptocurrencies and need not go through the long processing times of a fiat transfer. After consolidating your crypto into stablecoins, you can also HODL them at Hodlnaut and earn interest too.


Investing in a volatile market like crypto can be daunting. Given the history of crypto, it is not surprising for crypto to enter bearish markets. Bitcoin has undergone bearish markets frequently through the years and came back stronger each time. You can make use of the above tips during a bearish market while waiting for the market to recover. Remember to do your due diligence before making any moves and only invest amounts you can afford.

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