- Many altcoins are performing below expectations in the crypto market.
- Traders are focusing on portfolio management and low-risk investment models.
- Analyst’s low-risk approach to make money in a bearish crypto market.
With the cryptocurrency market facing a predominantly bearish outlook, and with most altcoins underperforming, many crypto traders are seeking ways to minimize risk and stay in the green.
One analyst, in his latest podcast, addressed this very concern, noting the market’s recent zig-zag movement has caused panic among the crypto community. According to the analyst, the market has seen rampant corrections after every recent rally, a pattern that can trigger emotional decisions among traders, launching them into unorganized and chaotic decision-making processes.
What’s the Analyst’s Overall Advice?
Crucially, the analyst emphasized the importance of good risk management under the current market conditions.
According to him, adopting appropriate risk management procedures will help traders protect their portfolios and make a profit despite the crypto market’s chaotic nature.
Related: Bitcoin’s Sideways Slide: Is the Dip a Correction or Start of Bear Market?
Low-Risk Strategy #1: Earning from Idle Assets
The analyst highlighted a first approach that allows users to earn profits from their idle crypto assets.
According to his explanation, only a few crypto-trading platforms offer services allowing traders to explore that opportunity.
Low-Risk Strategy #2: The AMM Liquidity Pool Approach
He also identified a second profitable strategy involving the AMM liquidity pool approach, offering payment to crypto users that provide liquidity.
Comparing the Risk Levels
Breaking down the offerings, the crypto analyst explained that the first option does not require users to lock up their cryptocurrencies. Instead, they would categorize them on the trading platforms, enabling them to receive daily profits. This approach suits risk-averse investors who prioritize capital protection and making steady gains.
Related: XRP’s Correction Ends: Analysts Predict a Surge Beyond $5.85
For the second option, the analyst noted that the AMM liquidity pool is slightly riskier than the former option. However, it remains a relatively low-risk strategy from an overall crypto market perspective. Interested users for this strategy provide liquidity to trading pairs and earn a portion of trading fees every time traders swap between the trading pairs.
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