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How to make money from a bearish crypto market with low risk as a beginner

 

By Reel Coverage Apr 12, 2025

 

 

Image credit: cryptobary

 

Everyone says to buy when there's blood on the streets, even if it's yours, that way, you'll profit when the trend reverses, but what if you buy the wrong assets or buy too soon and lose money? 

 

The truth is, there's no guarantee you'll come out in profit when you simply buy because the markets are crashing. 

 

An alternative to buying when the markets crash is shorting the markets through perpetual contracts, but even that is high risk and can quickly lead to a total loss of all of your investable capital. 

 

So if buying the dip or shorting the trend is not the best strategy, how then do you outperform smart traders in a bearish crypto market? 

 

Trade the difference, not the asset

 

The best low-risk profits when it comes to trading digital assets are made by being in the middle, not by taking either side of the trade. 

 

This means that you can neither be bullish or bearish, you only seek for what stands between these two sides. 

 

In a more formal term, this is called arbitrage trading and while it's a known trading strategy, very few know that there are tools to effectively capitalize on it. 

 

In case you're reading this and don't know what arbitrage trading is, arbitrage trading is a low-risk trading strategy that involves buying and selling a specific asset across different trading pairs or exchanges within a very short period of time to profit from the price difference. 

 

To make money through arbitrage trading, you need to first find arbitrage opportunities. This means scanning various exchanges and trading pairs for price discrepancy. 

 

For instance, if Bitcoin is trading at $83,000 on exchange A but trading at $87,070 at exchange B, you can simply buy from exchange A and immediately sell on exchange B making $4,070 profits in one trade. 

 

By doing this, you're trading to profit from the price difference, not from any long or short term general performance of the asset. 

 

Certainly, it's not as easy as it sounds to find arbitrage opportunities that are worth chasing, and given the size of the cryptocurrency markets, it can take a whole day to scan multiple exchanges and pairs to find these opportunities. 

 

As a result, the best solution for beginners and smart traders is to use automated smart software or apps that can easily scan numerous crypto exchanges and trading pairs for arbitrage opportunities. 

 

The best smart tool in the market is ArbitrageScanner and it has a lot of tracking solutions that covers various blockchains for decentralized exchanges opportunities and also various centralized cryptocurrency exchanges and trading pairs. 

 

The good news is that it does not require connecting your wallet, so you retain control of your trading capital and assets while accessing smart trading data. 

 

Irrespective of if the cryptocurrencies are crashing or surging in value, both markets trend present an opportunity for price discrepancies as sharp volume surge in either direction often leads to some market price feeds and order books lagging behind, giving smart traders with smart tools like ArbitrageScanner an opportunity to make thousands of dollars in profit.