Notwithstanding the decline in the value of crypto assets, the bear market still offers opportunities for individuals to profit from the crypto economy.
Over the past 12 months, non-fungible tokens have increased in value and given producers, traders, and other parties the chance to profit. Nonetheless, the recent slump has forced many investors to liquidate their cryptocurrency holdings, while others have given up on the space as projects fail.
Even though a bear market might be depressing for investors, it can also present a chance for profit, particularly in the NFT space.
We’ll look at how to profit in an NFT bear market in this piece. To help newcomers understand, let’s review non-fungible tokens and bear markets.
A Bear Market: What Is It?
The financial market term “bear market” refers to a decline in prices of typically less than 20%. The confidence of the market fell throughout this time.
The cryptocurrency market has seen bear markets in the past; the most recent one lasted more than two years before prices started to rise once more. This implies that a bear market can exist for any length of time. Older investors may have months or years of experience.
Averse risk-takers also view a bear market as an opportunity to buy low and sell high when the downturn ends. Purchasing during a bear market is known as “buying the dip.”
Non-Fungible Tokens [NFTs]: What Are They?
Blockchain-based tokens made of digital data are known as non-fungible tokens. These digital files are unchangeable since they are kept on a blockchain. On online markets like Opensea, these NFTs are available for purchase and exchange.
In contrast to cryptocurrencies, being non-fungible implies that it is distinct and cannot be substituted with anything else.
Digital files of any kind, including unique stuff like tweets, drawings, code, movies, and images, can be considered NFTs.
How to Use NFTs to Make Money During a Bear Market
There are numerous methods to profit from the current bear market in NFTs. Despite the fact that the downturn has left many investors counting their losses, there are still opportunities to make significant profits. They are talked about.
1. Generate your NFTs (non-fungible tokens).
Numerous initiatives have been introduced and have garnered attention, including Apecoin and others. They weren’t all launched overnight; rather, they all had to start at some point.
The bear run might be used to begin publishing and master the craft of making NFT tokens. The good news is that you might not have to wait for established creators for years on end. You may start making a lot of money today and take advantage of the next bull run. It’s possible that your first NFT collector is nearby.
2. Browse & Profit from Other People’s Work
Those that enjoy collecting NFTs can also profit from online searches on sites like Zora Finders Fee. as soon as you use your wallet to log in. By copying and pasting an NFT collection for sale, you can make money. For instance, when a transaction is made, you may receive a tiny portion in Ethereum.
3. Make a Free NFT Royalty Claim
There are currently efforts that enable NFT fans to obtain NFTs at no cost. Royalties from secondary sales might then be utilized by the owners.
The greatest time to search for these free NFT initiatives is during a bear market. Over time, owners may see amazing outcomes. Royalties from secondary sales are a means of generating income in the event that the project experiences a boom.
4. Produce & Generate NFT Content
The bear market presents an opportunity for creators to profit from their works. You can write, sing, or record worthwhile content on NFTs, just as we are learning in this essay how to profit from NFTs during a bear market.
Here, consistency is essential and can aid in creating a sense of belonging. You will probably profit from your work if your audience has found value in your content and has continued to visit your blog or channel.
5. Seize the Chance to Work with an NFT Startup
A large number of cryptocurrency fans and investors are giving up and leaving the market. Some cryptocurrency companies are also cutting off employees in tandem with this. Even with the downturn, new initiatives are being developed on a regular basis.
Those who would like to profit from NFTs can seize the chance provided by impending projects and become involved. Many NFT projects are looking for individuals with the necessary skill sets to assist in the project’s launch. Joining them now could have a significant positive impact on the project’s explosion.
In summary
Despite hitting an all-time high in November 2021, the cryptocurrency market has been negative for the majority of 2022. The cryptocurrency industry’s overall market capitalization has surpassed $1 trillion. Investors can still profit from NFTs in spite of this.
In a bear market, one can make money in a number of ways. People must participate in the market for the upcoming bull run in order to accomplish this. The NFT ecosystem is one of the most promising in the realm of blockchain technology, even though the next bullish market is uncertain.
