3 Ways To Survive a Bear Market with DeFi

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In the lead-up to 2020, the markets were in near-perfect conditions. All-time highs, a tech boom, and stocks that seemed to only go up. It’s safe to say that things have changed a little since then. After a worldwide pandemic, record-breaking inflation in countries all around the world, and more crashes than we can count, we’re most definitely in a bear market. 

With traditional finance failing investors, more users than ever before have started to look into alternative methods of investing. One that’s become increasingly popular and lucrative is the world of Decentralized Finance (DeFi). Yet, with cryptocurrency also experiencing a historic crash, falling from a market total of $3 trillion down to only $1 trillion, investing in assets doesn’t seem like the best way to go.

The fear that’s created by a bear market has made the traditional mechanism of investing in an asset and waiting until it goes up fairly difficult to achieve at present. While a few years ago, there was a very good chance that a stock or asset would increase in price, that’s no longer the case. 

Luckily, the world of DeFi has a range of solutions, with industry-wide methods that users are employing to gain passive income on their assets. If unable to sell without accepting an overall loss, these set-it-and-forget-it investment opportunities have become incredibly popular. In this article, we’ll be covering the main three, touching on lending, staking, and becoming a liquidity provider.

Let’s get right into it.

A large number of leading cryptocurrency and DeFi exchange platforms offer loans out to their audience