Whenever we enter a bear market, that is mostly when people take time to research and position themselves for the next bull circle.
This comes mostly from people who didn’t get the most profit from the bull market or lost their capital.
They begin to look for a crypto winter strategy, also known as the crypto bear market strategy.
I will share two crypto strategies that you can use to make money in the crypto space.
These strategies work in a bear and bull market. During the bear market, you will be doing your research and positioning for the bull market.
And when the bull market arrives – has gone 4-8 months deep, you will start taking profit at intervals.
The First Strategy
I will include historical data to prove that this strategy works.
Those that fail to learn from history are doomed to repeat it. ~ Winston Churchill.
History doesn’t repeat itself, but it rhymes. You observe that some investors who have spent more time in the crypto market make better investment choices than newbies or people who have yet to spend their time in the market.
It is not a wise business choice to ignore history.
This is one of the reasons you must study previous market patterns. When similar patterns show up in the current market, you will have the confidence and patience to stay in the market, regardless of the noise, to reap your reward.
These two strategies are an extension of how to make money investing in crypto.
The two strategies I will be talking about here are,
- How to make money with Binance launchpads
- How to make money with airdrops.
How to Make Money With Binance Launchpad.
A crypto launchpad is a platform that allows projects to raise capital from investors in exchange for giving investors early access to their tokens.
It is a dream come true for some investors to have early access to a good project before they go public. Investors get these tokens at a reduced price. Selling at the launching price sometimes covers their capital more than 5 times.
Because of the high probability of launchpad tokens pumping at launch, the demand is always high. Some exchanges, especially Binance, try to share it equally among every eligible investor.
This reduces the number of tokens every investor gets. You can imagine being willing to invest $20,000 on a launchpad token only to get an allocation of only $200 to invest.
That’s crazy, right?
Alternatively, you could buy during launchpad, and if you are unsatisfied with your allocation, you must apply the strategy I will mention in this post.
The interesting thing about launchpads is that they offer security to investors and founders.
By buying through launchpad, investors are confident that their money is safe.
Raising funds through launchpad, founders have access to a community of crypto investors and enthusiasts.
There are several launchpads. If you do not have people who can keep up with these launchpads across different platforms, their eligibility requirements, and dates, you should avoid depleting your energy and focus on one or a few launchpads.
Binance launchpad has performed well over the past few years. It could be attributed because,
- It has more liquidity
- It is the number 1 crypto exchange
- People find them more reliable because they have stood the test of time(several bear and bull cycles).
What to Look out for Before Buying any Launchpad Token.
The goal is not to pursue the limited allocation Binance gives during its launchpads. Instead, the goal is to buy after these projects are traded publicly on the exchange. This allows you to invest as much money as you are willing to lose.
However, if you must buy, you must buy rightly.
This is Polygon ($Matic) chart. According to the chart, it was dumped when Binance started trading it publicly. After a few weeks, it made a new high.
This is Venus($XVS) chart. It is similar as the Polygon chart.
This is WINK chart. I used a one-week timeframe because WINK took several months before reaching an all-time high after the token launch. But the scenario remains the same with Polygon and Venus chart.
Charts of Token Launches You Should Avoid.
The crypto space is filled with opportunities. I understand that many people fall in love with a token such that even when the chart is signaling buying a token at a time is not right, they go ahead to buy it. Then they become the exit liquidity of early investors. This puts them in a situation to hold a coin for a long time, which they do not intend to hold for a long time.
And if these coins had been pumping coin by market makers, they may never pump again, which leaves you with the only option to cut your losses and move on.
The charts below are examples of token launches you should avoid by all means.
When ImmutableX was launched, it continuously kept going up. One of the things that cause tokens launches to start like this is because they always have hype. Generally speaking, when the hype of a token is pumping it, this is not when to buy the token. ImmutableX didn’t see a new all-time high after this.
Most of the tokens I mentioned above did their launchpad in the 2021/2022 bull cycle.
Using a singular life event to validate your information is not enough to decide what is right or wrong.
However, I refer you to some 2017 ICOs that raised huge amounts of money. Today their tokens are not performing well. What we have today as launchpads were rebranded from ICO, so they are not different.
One thing is common between these two scenarios. After each launch, give these tokens a few weeks for the chart to form. To give you a line of action to act upon.
It is not a proper investment strategy to gamble investing in a token within the first and second days of launching. You could be someone else’s exit liquidity.
The Second Strategy
This strategy is about keeping a close eye on the chart of airdropped tokens.
Sometimes, when we get airdropped with a particular token, we may need more than the number of tokens we were given. Because the project has the potential to make us a lot of money, we have to buy more when the token launches.
I used this strategy with Juld and Trustwallet tokens.
Juld did an airdrop. According to my research results, it would be a good investment. I wanted more than the number of tokens I got during the airdrop. I had to wait for airdrop hunters to dump their tokens and move on before adding more Juld to my existing ones.
The strategy is simple. When airdrops with good hype like Optimism($OP) and Uniswap($UNI) launch, allow airdrop hunters to dump their tokens. Keep an eye on the chart for it to dump. When it dumps so low, according to the chart, you can begin to buy little by little and DCA(Dollar Cost Average) as it goes down.
Examples of charts you should look out for before investing in airdropped tokens.
The timing of the market is very important. Very few projects pump during the bear market. Even when they pump, it ranges between 2x-10x after dumping. From my experience, playing the airdrop and launchpad strategies during the bull cycle is more rewarding than the bear market, which is normal. However, you should know that the return on investment would be lower during the bear market. You can pick 2x-10x from these strategies during the bear cycle.
During the bear market, your research results should have the following answers about a project before investing in them.
- Are they solving a key problem in the crypto space?
- Who are their investors? Are they known to dump their holdings, buy more, or just hold?
- Do they have loyal community members?
- Who is the team behind the token, and what are the token use cases?
Example of Charts of Tokens to Avoid After the Airdrop Launches.
Why do Blockchain Projects do Airdrop?
It is no longer a piece of news that good crypto projects airdrop their tokens to their loyal community members. The consistency of airdropping tokens has allowed people to become airdrop hunters. I mentioned airdrop hunting as one of the ways to make money in crypto without money or little money, doing some tasks.
During the ICO craze in 2017, many were launching cash grabs projects, rebranding whitepapers, and relaunching. After a few months of launching, some rugpulled or silently became inactive in the crypto space. Some were requesting high monetary investments from the public without use cases. Telegram had to attempt launching its token where they were asking $1.7 billion.
This gave some people the impression that this speculative bubble may not end well. Which didn’t end well.
SEC had to step in to prevent this speculative bubble from ruining people’s lives.
One of the ways the SEC(Security & Exchange Commission) had to get involved was to ensure that these projects were not selling security tokens. At the same time, they were coated as utility tokens. SEC requires that securities should be registered before selling to the public.
Registering your project on SEC is time-consuming and expensive. By the time the paperwork was done, the hype in your project could have disappeared, or your competitor would take the first mover advantage.
SEC also made it clear that selling unregistered securities without an exemption was a violation that could lead to civil lawsuits or administrative actions.
With all these terms and conditions, you discover that prominent projects prefer raising capital through venture capital to doing an ICO. They would then airdrop their tokens to their community for the following reasons.
Build hype
When it is rumored that a good project will conduct an airdrop, it attracts more people to the project. Investors would like to use the blockchain protocol to get familiar with it and stand a chance to get an airdrop if it comes. Understand airdrop serves as a medium of marketing a project. Imagine, if I had the chance of getting an airdrop compared to investing money to buy a coin(ICO), it would be easier for referred 10 friends to participate than if they were to pay for it.
Build community
Airdrops help blockchain projects to build a strong community. Users, investors, influencers, etc., become part of your community because they feel included in your project and belong to your community. By distributing your tokens to many people, many users feel that they have skin in your project and that its success means their success. Therefore, they would do anything to support your project and even market it. Imagine more than one influencer consistently educating your project to their followers. Money does not get you this kind of marketing.
Decentralize community
Sharing airdrop equally amongst community members shows how decentralized a community is. No central authority gets more or lesser than any member of the community. Community members can participate in the process of distributing administrative authority, such as proposing changes in the network.
Bootstrapping liquidity
Blockchain projects that do airdrop do not have to bother themselves about providing liquidity for investors and traders to trade their tokens. Today, many traders and investors want to buy and sell a token after the airdrop. Investors that want to sell have people to buy their tokens, and investors that want to buy have people that want to sell. Blockchain projects no longer have to provide millions of dollars in liquidity to match the buy and sell orders of traders trading their tokens.
Conclusion
The crypto market has yet to become more interesting than it is now. The opportunities are enormous. It is easy to get overwhelmed trying to chase all the opportunities.
This has made many people not wait out on a strategy before quitting it or trying other strategies.
Because we are in the crypto space, it is assumed that successful business principles do not apply, which is false.
- Pick a working strategy.
- Learn the ropes very well.
- Exercise patience for your results to mature.
- Make more money.