7 Strategies for Earning in a Bull Market
In the last quarter of 2023, various altcoins witnessed a surge of 300-400%, and Bitcoin firmly held its ground above the $40,000 level. With indications of a bull market, crypto enthusiasts are now pondering the best ways to profit. Such phases often bring increased liquidity to the market, creating ample opportunities.
While investing in a variety of tokens appears to be a straightforward way to profit during the market's uptrend, it's not always the most effective strategy. Without in-depth analysis and the right conditions for a specific project, there's a risk of missing the bull cycle's peak, leaving investments dormant in underperforming tokens.
Duration of Bitcoin's Bull Run
Our website features an insightful article trying to gauge the authenticity and duration of the current bullish trend. It discusses the duration of past bull cycles, noting that previous upward trends in Bitcoin's chart generally lasted about 6–8 months.
As of press time, Bitcoin's significant growth has been ongoing for roughly two months, suggesting that the bullish phase could potentially continue for up to another six months.
Let’s explore 7 specific strategies for profiting in this current market situation.
Public Token Sales
Public token offerings are conducted on ICO, IDO, and IEO platforms. According to the data from the major ICO platform Coinlist, even projects that were initially unprofitable for investors at their TGE (Token Generation Event) are now trading at 200-400% higher than their initial offering price. This reflects a generally positive trend in token sales.
Similarly, data from Cryptorank shows that during December, several token sales on various launchpads turned out profitable. Projects such as 5Aire, Inspect, Gala Music, Finceptor, and Work X, among others, are notable examples.
The leading launchpads at present include Polkastarter, DaoMaker, Seedify, GameFi, Poolz Finance, and Red Kite. In a continued bull market, public token sales on these platforms are poised to yield positive outcomes.
Largest IDO Launchpads by Profit Margin. Source: cryptorank.io
Private Token Sales
Before going public, crypto projects often hold private sales rounds like seed and strategic rounds. Typically, tokens in these rounds are priced lower but come with longer lock-up periods.
Participants in private token sales generally include:
- Cryptocurrency companies;
- Small investment funds;
- Business angels and influencers.
We've explored the pros and cons of this investment approach in a specific article. A potential bull market can significantly mitigate the issue of liquidity, enabling well-prepared projects to show strong performance upon listing. With effective risk management, private sales can be a lucrative opportunity.
As of press time, crypto projects Starknet and LayerZero had announced retroactive drops for their early users, and the Jito platform even distributed tokens (up to $10,000 for active traders!). In a bull market, blockchain startups often find it optimal to launch their tokens, as the next market growth phase might be quite distant.
Projects like zkSync, Holograph, Arbitrum Nova, Orbiter Finance, Linea, Scroll, and Base are now seen as potential candidates for issuing their native tokens and possible retroactive airdrops.
Farming of Emerging Tokens
New tokens on exchanges frequently offer high yields in farming. This is due to:
- Increased user activity and trading volumes due to project hype;
- Poor liquidity in trading pairs;
- Direct support from exchanges or launchpads providing specific token rewards.
Placing these new assets in farming can yield returns of 400-1000% annually!
Yet, standard DeFi risks should be carefully considered, requiring close monitoring of asset dynamics, tokenomics, and market conditions.
Not all tokens traded on exchanges are listed on sites like CoinGecko or CoinMarketCap. Many can be found on analytical resources like DEX Tools and DEX Screener.
Assets with smaller market capitalizations have substantial growth potential, especially with strong marketing and a large audience. Traders engage in "sniping" by analyzing market data of various assets, buying them in hopes of profitable outcomes.
Token Sniping Platform Dexscreener. Source: dexscreener.com
This method comes with its risks, but with effective risk management and thorough analysis, sniping can be highly profitable.
Affiliate and Ambassador Programs
Influencers and bloggers, especially during a bull market, have the upper hand. Tokens grow rapidly, and affiliate or ambassador programs with crypto projects can yield significant income.
For those without a large audience, active participation in Discord channels, translations, articles, informational materials, and user engagement can lead to ambassador roles.
It's particularly in a bull market that these activities have the highest earning potential.
This approach is best suited for crypto bloggers and influencers. The bull market's increase in crypto interest means users are more inclined to purchase informational products like private group access, mentorship, trading courses, and guides.
With proper marketing and production, informational products can be lucrative, though considerations like market trends, competition, data relevance, and niche interest are crucial.