How to save and increase funds in the bear market: Coinex tips
An unstable macroeconomic situation and Terra collapse provoked a deep crisis in the cryptocurrency industry. Negative dynamics were strengthened by the problems of large companies that were on the verge of bankruptcy.
Coinex is an exchange that survived the cryptosim of 2018-2019 and became part of the Viabtc Group ecosystem. Together with the platform, we talk about three ways to make money in the bear market.
Short positions in the futures market
Short is a position on the sale of a financial instrument that allows you to make a profit even when the market is falling.
How it works? The user occupies an asset at the exchange and sells it at a market price. When the asset is getting cheaper, the trader buys it and returns the debt at a lower rate.
He earns on the difference in prices – sales in the open market and purchases to pay debt.
When opening a short position, always pay attention to potential losses: they are endless, and profit is limited by the zero price of the asset.
Losses can be minimized using a stop loss-a warrant that will automatically close the position when the price moves in a loss direction.
In addition, it should be taken into account:
- Funding rate – The difference between the prices of the spot and futures markets. Depending on it, users pay or receive a reward for their open positions: with a positive rate, Longs pay shorts, and with a negative – on the contrary. Mechanics is aimed at achieving the parity of market prices: so traders often close and open positions;
- The likelihood of a shortstage – rapid growth in price with an excess of short positions in the market. Their elimination creates additional demand and leads to a further price increase. Square-frequent phenomenon in low liquidity markets.
Historically, all markets, including cryptocurrency, are mostly growing. However, the absence of stop losses and trading with a high credit shoulder can lead to the elimination of the position after the bears departure from the market.
Passive income
If you do not want to risk money in the futures market, you can invest with a small stable profitability to accumulate cryptocurrency and prepare for a new bull cycle.
The most common tools for passive income:
- Flexible and fixed deposits. The platform uses the funds for issuing loans and accrues the owners with part of the profit as a remuneration. Yengage depends on the site and demand for lending services;
- liquidity pools on decentralized exchanges like OneSwap. Participants receive rewards for providing liquidity in the currency of the pool. The profitability can be very high, but the volatility and low liquidity of many tokens can reduce real profit in the long run.
Deposit services are widely represented in the cryptocurrency market. They are provided by landing platforms, crypto -financial companies and centralized exchanges.
Coinex users can borrow funds for marginal trade through a specialized financial account and add liquidity to the pool of an automated market maker (AMM).
In the first case, they receive a fixed income: at the time of publication, the 7-day APR Tether Landing Apr is 2.36%. In the second, they share 50% of AMM user trading commissions.
Ambassado programs
As a rule, they are launched by projects that want to create a community around their products and services.
The main requirement for participation is the presence of an audience in social networks. Ambassadors distribute information about the company and receive remuneration: some of the referral commissions, salaries or payments for content are training videos, explosions and memes.
“Ambassador programs are one of the reliable ways to make money in the bear market. You get money for sharing cryptocurrency trading experience, and your earnings depends not only on the number of attracted users. Many platforms pay users for the creation of useful content or assistance in organizing user events, ”comments the Coinex team.
Participants in the Ambassador Coinex program receive up to 50% of the trading commissions of the attracted users for an unlimited time. The size of the remuneration depends on the trade volumes of referrals.
In addition, until October 25, a futures program operates on the platform: Ambassadors receive up to 60% of the referral commissions, as well as the trial trade in futures and Merch Coinex.
Users with 3,000 social networks like Twitter, Tiktok, YouTube, Instagram or Telegram, as well as community administrators that have more than 500 followers can join it.
To participate in the futures program you need:
- register for Coinex;
- submit an application on the page of the Ambassador program;
- Fill out the form and enter the referral code Futures.
After the approval of the application, Coinex will send a letter with detailed instructions for the ambassadors.
conclusions
The crypto industry offers various ways of receiving income-from active trading in spot and futures markets to passive earnings in lending services and Defi protocols. The relevance of many of them will increase with the onset of the bear market.
Futures trading are suitable for more experienced traders, and investing in financial products and receive passive income and beginners will be from newcomers.
Influensers can monetize their influence in social networks – to participate in Ambassador programs and receive rewards for content.
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