When you talk about cryptocurrency, you will certainly talk about VOLATILITY, because it is part of the characteristics of the cryptocurrency that makes it possible for investors to make profits from it. Many who are not into cryptocurrency attributes their rejection of the decentralized monetary system to the volatility of the system. I won't blame them for that, because not every individual can handle the volatility of his funds invested in cryptocurrency when there won't be much volatility with the fiat system.
The current bearish trend in the crypto market which has been on for more than three months has been a thing of concern for investors as they witness their portfolio worth dip continuously. Some ended up cutting their loss while others are waiting for the long-anticipated bull. Amidst the bearish trend, many people are still able to record profit from their crypto assets. All thanks to the features of DEFI and online gaming.
One thing I have come to understand is the fact that our success in the digital world depends on the strategy we have employed. Some people benefit from cryptocurrency through the popular strategy of buying the dip and selling the bull, and others benefit from cryptocurrency by putting their crypto assets to work, which earns them rewards passively. We have those who deal with crypto trading daily. All these are all good practices BUT NOT ALL OF THEM ARE SUSTAINABLE DURING THE DIP.
Trading is profitable both during the dip and the bull. During the bull, traders buy low and sell high, and during the dip, they go on with shortening.
DEFI is another strategy that works well both during the bear and bull markets. Investors stake their tokens, delegate to validators, or lend them out and receive daily rewards in return. The difference between those who make a profit from DEFI and traders is the fact that DEFI users do not need to study technical analysis, market trends, etc as it is with trading. They just stake their tokens and collect their rewards daily or compound them to make more money. By this, I do not imply that DEFI is the best strategy because DEFI is still faced with some challenges; Impermanent loss and slashing are part of the challenges they face.
In conclusion, due to the volatility of the crypto market, it will be a wise idea for investors to have a daily income plan that will help them during the bear market. We just need to make the necessary research and go with the one that works well for us. Remember what works for Peter may not necessarily work for Paul. Do your research and make the right decision.
Until I come your part again, stay safe and invest only what you can afford to lose.