Survival rules in a falling market: Seven paths from directional speculation to systematic profit

Author: CyrilXBT

Compiled by: Saoirse, Foresight News

Original Title: 7 Profit Paths for Professional Players in a Downward Market

When the market crashes, most people will only do one of the following two things:

• Panic selling and then completely exiting the market;
• Going all in with leverage, trying to “win the money back.”

However, the approach of professionals is completely different. They shift from “directional speculation” to “replicable cash flow and advantage building.”

Here are 7 strategies that can help you profit during a downtrend without having to accurately time the bottom.

Strategy 1: Let the assets you truly want to hold generate income

If you are ultimately going to hold Bitcoin, Ethereum, or other top mainstream cryptocurrencies, why not let these assets “work for you”.

Earn rewards in the following ways:

• Staking / Liquid Staking
• Blue-chip DeFi lending (such as Aave, Compound, and other platforms)
• Transparent Terms CEX Yield Products

Why is it effective in a market crash?

• As long as you are willing to hold the underlying asset, volatility will not cause you any substantial harm.
• You can earn profits by “waiting” instead of making emotional trades on every candlestick.

How to operate skillfully?

• Persist in choosing “top assets + top protocols”.
• Avoid suspicious tokens that promise double-digit or triple-digit annual percentage yields (APY).
• Treat earnings as “extra rewards” rather than the core reason for holding the asset.

The mindset of a professional is: “No matter what, I will hold onto it; the profits are just to offset the pain of the market downturn.”

Strategy Two: Points and Airdrop Farming (The Operation Method of Experienced Players)

Profit-making Farming players in the current market do not click on random projects casually; their targets are highly focused.

Earn non-token rewards such as points, scores, experience points (XP), etc. from protocols that meet the following criteria:

• Tokens may be issued;
• There are already practical application scenarios and financial support;
• Favor long-term active users rather than one-time “check-in” visitors.

Why is it effective in a bearish market?

• Even if the price drops, the protocol still requires user participation.
• Most people stop paying attention to the market, leading to a significant decrease in competitive pressure.
• A generous airdrop profit may exceed the total profit of several months of small trades.

How to operate cleverly?

• Focus on “infrastructure and core DeFi areas” (such as Layer2, perpetual contracts, cross-chain bridges, re-staking, wallets, etc.).
• Invest a small but consistent amount of effort: Stick to the same operation every week.
• Use a simple table to record the projects you are farming and the reasons.

Professionals view airdrops as a “stable source of income” rather than a “lottery ticket.”

Strategy Three: Request for Quotation (RFQ) / Arbitrage: Making Money from Market Inefficiencies

If you are just capturing pricing discrepancies, there is no need to predict market direction.

• Arbitrage: Buy low on one platform and sell high on another platform.
• Request for Quotation (RFQ): Execute large over-the-counter (OTC) orders with a certain spread.

The strategy includes both simple “CEX and DEX pricing deviation arbitrage” and more complex “cross-exchange arbitrage.”

Why is it effective in a market crash?

• Volatility = Frequent pricing errors.
• Panic fluctuations can lead to temporary price differences between different platforms and trading pairs.

How to operate (even with small scale funds)?

• Simplified version: Track several trading pairs on 2-3 major CEXes + 1-2 DEXes, paying attention to the recurring price differences of 0.5%-1% that can be profited from with low transaction fees.
• Advanced version: Use bots or tools that can alert price differences, maintain a reasonable trading scale, and focus on “execution speed and transaction fees.”

You don't need to guess whether it will “rise or fall” — you earn rewards by “narrowing the market price difference.”

Strategy 4: Provide Liquidity (Avoid Becoming the “Greater Fool”)

When liquidity providers (LPs) operate casually, they often incur huge losses; however, professionals see it as a “business.”

Provide liquidity to DEX liquidity pools, including:

• Uniswap-style Automated Market Maker (AMM)
• Concentrated Liquidity (e.g., Uniswap V3 style)
• Stablecoin trading pairs or highly correlated asset trading pairs

The profits you can obtain include:

• Transaction Fee
• Sometimes you can also receive incentives such as tokens / points.

Why is it effective in a bearish market?

• Even in a market crash, people will still trade, and trading volume may even surge.
• If you “strategically select trading pairs,” the fee income can offset losses from the decline in asset prices.

How to operate to avoid liquidation?

• Start with “stablecoins - stablecoins” or “highly correlated trading pairs” (e.g., ETH-stETH).
• Only after understanding the “rebalancing mechanism” should the narrow liquidity range be used; otherwise, keep operations simple.
• Track the balance between “Impermanent Loss (IL)” and fees: If impermanent loss continues to exceed fee earnings, adjust strategy immediately.

Think like a market maker, not a gambler: “Is the reward I receive enough to cover the price risk I take?”

Strategy 5: Light Market Making for a Few Trading Pairs

You don't have to become a large market maker like Jump, just “systematic operation” is enough.

Place buy and sell orders around the current price to achieve:

• Capture the bid-ask spread
• Earn trading fees
• Provide depth for the market

Operating methods include:

• Manual operation (suitable for small accounts)
• Use Simple Bot / Grid Bot
• Focus on 1-3 trading pairs you are very familiar with

Why is it effective in a bearish market?

• A market with high volatility and light trading means wider bid-ask spreads.
• Whenever people chase prices due to “fear of missing out (FOMO)” or panic sell and “trade through the price gap,” you can profit.

How to operate cleverly?

• Choose “mainstream coins with sufficient liquidity” or large-cap tokens, and avoid “ghost coins” (tokens with extremely low trading volume).
• Determine your “inventory range”: the maximum amount of a certain asset that you are willing to hold.
• No need to overcomplicate: as long as the range and scale are reasonable, even a basic grid strategy can be profitable.

This is not a game of “predicting candlesticks,” but rather the logic of “selling shovels during a gold rush.”

Strategy Six: Content Creation: Make Money with Clear Thinking When Everyone is Panicking

Attention has never disappeared; it has just shifted from “the Meme that only goes up” to “what should I do now?”

Create the following content:

• Tweet threads, newsletters, in-depth analysis;
• Loom analysis video / YouTube short video;
• Spaces voice live streaming, podcasts, niche area updates.

And monetize through the following ways:

• Brand Sponsorship
• Affiliate marketing link
• Premium Membership Subscription
• Consultation Service Order

How can one profit in a market downturn?

• People urgently need “clear information” and “screening criteria.”
• When market enthusiasm wanes, projects still need content dissemination (customer acquisition / brand exposure).
• Your research is done for yourself — the content is just to “amplify” this value.

How to operate cleverly?

• Choose a niche (such as AI + crypto, Layer2, Real World Asset tokenization RWA, perpetual contracts, re-staking, etc.).
• Publish content at a fixed rhythm: for example, 2 tweet threads + 1 newsletter per week.
• Focus on “clear frameworks” and reject hype - this is your core distinction from “noisy content.”

In a bear market environment, “effective information” is more valuable than “emotional stimulation” — money will flow here.

Strategy Seven: Consulting Services and “Think Tank” Monthly Subscription Services

Once you can maintain a clear mind and express yourself well, people will pay for “getting your insights.”

Receive rewards through the following services:

• Assist the team in developing narrative strategies, designing token models, or go-to-market (GTM) plans;
• Provide industry and project analysis recommendations for funds / OTC trading platforms;
• Support founders in brand positioning, creating presentations (Deck), and planning community strategies.

Charging methods include:

• Monthly service fee
• Growth Sharing
• Token Distribution / Consulting Agreement

Why is it effective in a market crash?

• A quality team will not stop building due to market downturns.
• After retail investors exit, the team will place more emphasis on “narrative, research, and strategy” (rather than mere speculation).
• They prefer to pay “industry practitioners who are deeply rooted in the market” rather than random agencies.

How to position oneself?

• Use your content as a “portfolio of ideas” (to prove your professional competence).
• Clarify your core advantages (such as research, token economics, storytelling, business development, etc.).
• Start with “a few high-value projects”: 1-2 quality clients are far better than 10 time-wasting low-value clients.

You will transform from a “struggling trader” to an “industry participant paid by the bulls.”

Core Thinking of Professionals at This Stage (Global Perspective)

When the market crashes, professionals do not:

• Chase every K line
• Increase leverage by three times
• Pray for the “Miracle Bottom” to appear

They will tighten their strategies and consider the following questions:

• “How can I profit from 'market activities' rather than just relying on price direction?”
• “What skills can generate compound interest in the next cycle?”
• “How can I stop being a 'bag holder' and instead become part of the 'market infrastructure'?”

If you don't want to lose money like most people, choose 2-3 strategies from the above 7 options, and then:

1. Start with a small-scale investment;
2. Systematic operation;
3. Persist for months, not just a few days.

This is how you survive in the current phase and “seize the opportunity” when the real trend arrives in the next round.