Few people are flocking to purchase risky assets as the economy faces a future that is bleaker than a Welsh weather forecast. Here are some suggestions for navigating challenging market circumstances


 #1: Save cash

There’s nothing wrong with staying out of things to save money.

You will have enough of dry powder to make significant allocations when bullish momentum resumes. If you trust the system you’re utilizing, there are still plenty of options to generate yield across all crypto markets.

However, isn’t this market timing, which is impossible? Possibly. But rather than more precise price targeting or predicting reversals, this is more about identifying market momentum and broad patterns. Greater trends are simpler to identify. There is another choice, though, if that seems a little hazardous.


#2: Find assets that outperform

The craze of the bear market has been decentralized everlasting exchanges. Where can I short? traders cried as they flocked to decentralized options following the FTX incident. Many chose protocols like GMX and ApeX, which have increased by around 70% and 50%, respectively, this year.

There will always be assets that outperform during weak markets, but locating them requires a lot of work, and taking positions while the market is down is dangerous. Therefore, this approach should be taken with caution, and investors who have the knowledge and experience to recognize a good project and implement sound risk management are most suited to employ it.


#3: Use derivatives

To guarantee profit in downtrending and sideways markets, numerous strategies utilizing derivatives and combinations of contracts are available. For instance, by utilizing options to establish a “bear put spread,” you can profit when an asset declines by securing a favorable selling price at a lower price.


Advanced yield farmers can also use pseudo-delta-neutral tactics to long and short both sides of a liquidity pool. They are less exposed to the volatility of the assets they own as a result, which allows them to collect pool fees while minimizing their risk of losing money.


#4: Keep your head on while others are losing theirs

You wouldn’t attempt to ascend any kind of cliff without appropriate safety gear unless you’re a free climber like Alex Honnald. Investment in cryptocurrencies is similar.

What safety apparatus? Well, a cash-only emergency fund is an excellent place to start. It shouldn’t be utilized for yield, borrowed against, or staked; it should be enough to meet basic living expenditures for around six months.

Finally, remember to take care of your mental health because recessions are difficult. You are making yourself less healthy and decreasing your chances of making wise judgments when the time comes if you are preoccupied with your portfolio or are continuously checking the pricing. So leave the computer behind, head outside, and have some fun.


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