Current cryptocurrency market circumstances force most traders to enter short positions. It now appears that using DeFi solutions can be rather lucrative in this regard.
One Reddit user has documented this entire process.
Using DeFi to Short Crypto Markets
By using the Dai stablecoin and Basic Attention Token, he netted a small profit when prices fell.
For those who are stuck in regular trading positions, it creates an innovative solution to make money regardless.
Making money during bearish market conditions is often more difficult than people anticipate.
While it is not always advised to short markets, it can be used to one’s advantage at all times.
Sometimes, holding one’s assets is not the best way to make a profit.
This method is also very different from the flash loan situation affecting bZX not that long ago.
Using these tools at one’s disposal is completely legal, albeit it is not a foolproof solution by any means.
Utilizing this method for bigger amounts will always carry significant risks.
Cryptocurrency markets are volatile and unpredictable first and foremost.
Doubling down on existing market conditions can work out well, but it can also be the worst possible solution.
Having different options to explore during bearish market conditions is never a bad thing, though.
Image(s): Shutterstock.com
