How to Earn Passive Crypto Income in a Bear Market?

For experienced investors, a bear market is not out of the ordinary. It has happened in the past and it will happen again, even in cryptocurrency.

The majority of new investors are in the midst of their first crypto winter, during which most digital assets have depreciated over 70% from their November 2021 highs. While a bear market is tough for everyone, it can be especially challenging for those who are new to the space and don't have much experience dealing with market volatility.

That said, there are still opportunities to earn passive income during a bear market – crypto traders just need to know where to look. In this article, we'll look at how Wall Street traders persevere and what simple things can be done to make money. Is it time to buy more assets? What are the easiest ways to generate cash in a recession? Are there any investing techniques that work during bear markets? What assets to invest in while Bitcoin (BTC) is in a bear market in 2022?

In traditional markets, a bear market is described as any time stock prices fall more than 20% from a previous high. In cryptocurrency, a bear market refers to an extended period where prices fall significantly and market confidence plummets.

How long are crypto winters? Although there is no set time period, most people agree that a cryptocurrency bear market lasts at least three months. The current crypto winter began in November 2021 and, as of this writing, shows no signs of slowing down. So how long will this bear market last?

It's impossible to say for sure, but based on past trends, it could take a while. The last cryptocurrency bear market lasted over two years, from 2017 to the end of 2020. If the current bear market follows a similar timeline, we could have a long winter.

Most often in a bear market, every asset loses value with only very brief deviations. Later, investors spot assets that are selling at bargain prices and buy them, ending bear markets for good.