How to make money in cryptocurrency bear market

If the crypto winter has placed your altcoin trading on ice, you were never a trader to begin. Any fool can make money in a bull market, but bear markets are where knowledge is gained and future profits are carved. Take up fishing; join a gym; kill some time until more favorable conditions return. Not so. Following the giddy euphoria of daily all-time highs, level-headedness returns. Clear thinking prevails when hype has been hustled out of town. While some of the following strategies call for experience, the majority require little more than a willingness to study. Any which way is good provided you can identify the trend. The shorter the time frame, the greater the risk of getting liquidated — but the quicker the mak. The likes of Bitmex and Okex offer futures as well as perpetual contracts that are funded every eight hours.

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)}Logic, not emotions. The recent bear market in crypto may seem like an eternity. So how do you make money in a bear market in crypto? We saw that recently from mid to early You are not. In fact below is a popular representation of investor psychology. It shows the emotional roller coaster that a typical investor goes through during a common market fluctuation. Is this just a random chart? In fact this pattern has been repeated over the years. Some past examples of such cycles are:. Cryptocurrencies are not immune to this pattern. Investor psychology plays a big part in this expansion and contraction cycle. Emotions lead us to buy when we have a fear of missing. Emotions then lead us to a euphoric phase where strong growth makes us believe we will continue to make huge gains. So we either invest more or continue to hold. Emotions then make us panic when the downturn accelerates.⓬

What is a market neutral strategy?

Follow us on Twitter or join our Telegram. Nonetheless, there are still traders who are making bank in the crypto asset markets despite the bear market. In this guide, you will discover how you can deploy a market neutral trading strategy to potentially generate a trading profit despite the difficult current market environment. A market neutral investment strategy aims to profit from both rising and declining prices while avoiding overall market risk. In this guide, we will focus on equity market neutral arbitrage and how it can be applied in the crypto asset markets. For example, a portfolio manager can go long tech stocks that he or she believes will outperform while going short comparable tech stocks within the same sector that he or she believes will underperform to benefit from the price differential of his long picks versus his short picks. Equity hedge funds and market neutral mutual funds have been deploying this investment since the s. Having said that, it is important to note that market neutral funds will generally not perform as well as funds that are highly correlated with the market during a bull market.

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It does not take a paid group or being a genius to profit from investing in cryptocurrency. That is not how investing works. Real investing is persistent and it takes having knowledge about the projects you invest in. Cryptocurrencies other than Bitcoin are referred to as Altcoins alternative coins.

Is it possible to make money in a bear market in crypto?

The cryptocurrency market has been showing some signs of life in the past few weeks. The price of Bitcoin and altcoins, both major and minor, have had positive movements in the market. However, compared to the end of and the start of , the cryptocurrency market is still in a decline. The market has passed through an aggressive bear market, and many token holders are improvising to find ways to increase their holdings and make up the loss from the declined price. After all, there are a few ways that one could stack their holdings while waiting for the bulls to return. Sapien is a decentralized social news platform built on the Ethereum blockchain. They are committed to upholding free speech, privacy, and democracy while aiming to combat current issues that plague traditional social media, such as:. This includes creating content, leaving comments, and voting on posts. This unique value proposition appeals to users who care about quality content and want to have a meaningful online social experience. Sapien just recently rolled out their Rewards Engine 2. Rewards in 1. However, now with 2. The more Charges a post receives, the more SPN the poster will earn. Tens of thousands of SPN have already been distributed to users on the Sapien platform as thanks for their social activity.

Make money even when the market is going down

It is all. You also feel like jumping on the bandwagon of the mystic world of cryptocurrencies and get your USD, EUR or GBP converted into Bitcoin or Altcoins, which seem to have a better future or future return.

Civilized man refused to adapt himself to his environment. Instead, he adapted his environment to suit. He built cities, roads, vehicles, machinery. And he put up power lines to run his labor-saving devices.

The more he improved his surroundings to make life easier the more complicated he made it. Now, his children are sentenced to 10 to 15 years of school, just to learn how to survive in this complex and hazardous habitat they were born. And civilized man, who refused to adapt to his surroundings, now finds he has to adapt and re-adapt every hour of the day to his self-created environment.

For instance, if the day is called Monday and the number comes up, you have to dis-adapt from your domestic surroundings and re-adapt yourself to an entirely different environment. And then, you have to look busy. But in the the Crypto world, there are no clocks or calendars tell you to do this or.

Or Sunday. What if I told you there is a revolution building out there, much beyond Bitcoin? A revolution happening right under our noses. Billions getting transferred from between latitudes without any government, or central body interference?

No barriers. The VEN you bought in the morning? All through an exchange in Hong Kong. And all of it is happening. Right now, as we speak. A world where investments are decided and controlled solely by youthe rightful owner of that amount of money. Never before in history has the transfer of money happened on this level, at this scale that involves the average person.

No complex, confusing terms courtesy of Wall Street anymore. Half of the words they use are made up to make you believe only they can do what they. All you need is a basic internet connection, a trading account at a crypto-exchange Binance is what I usea small sum of money to start with, blogs and traders whom you could follow and take cues from, and PATIENCE.

I am ready. I am ready to throwaway my job, trade for 4 hours a day, and go laughing to my bank to cash. I get shilled some beautiful sounding coins, with celebrities backing them, promising me a life of work-free living if I somehow buy it.

And oh, McAfee just posted about it on Twitter this morning. I am going to take out a mortgage, max out my credit card, and purchase all these coins. After all, these are the next bitcoins that will make me rich. So why am I reading this? Where is the secret potion that makes me millions overnight while I vacation in my private yacht anchored off the coast of Fiji Islands?

Those blogs you read and Videos you saw? They know as much about it as you. Just like a scammy Indian Godman. You see, we are so lost in finding answers and attaching meaning to random outcomes, that we fail to understand the why. Causality states that worldly agencies, or phenomena through which one thing the cause under certain conditions gives rise to, causes something else the effect.

There are a different things that affect every increase in cent of a particular coin or token. Any one who tells you with conviction that X coin is going 2x in a month, is probably BSing, shilling, being overly optimistic, or driving the price up to dump it all when X reaches a favorable price.

A trader, at least the ones I know and speak with, would never state a particular price or be sure about where X would be in a few days.

You spend a day trading Coin X you picked over the past week. Followed the trends, completed a careful fundamental analysis, and since the market is bullish, invested all your funds into it because, it is only going up right?

You pour yourself the finest scotch, snuggled into the Thai silk pyjamas, and kiss your wife goodnight. That last Ripple rally went really.

You see right there there can be various political motivations and anti-monopolistic sentiments and so forth. One that you forgot to set the stop-losses on. Hearing this news, the Chinese quickly offload what they. Someone tweets about this development and the Koreans think the next country to ban crypto is theirs. The FUD spreads. The Ozzies watch the price going south and begin to sell-off, followed by the Indians, the Arabs not that they need crypto to get richand in a few hours, this thing hits Europe.

Reddit catches hold and the subreddits go crazy. Hackernoon articles are written. Eight hours later, you wake up to a bloodbath. Your beloved portfolio is red. The news is awash with crypto obituaries. Dejected, and to salvage any remaining profits you can to fund that Thailand trip you thought of in your head, you proceed to sell off your positions at a loss.

Why did I even get into this in the first place? The point is, such things happen, and no one can tell you where the price of X will be two days, two hours, two minutes later. No One. And hence, you should take such advice with a pinch of salt.

With experience and usage of trading indicators, you learnt to predetermine when the market is going south, and get out of the market safeguarding both your profit and crypto-dignity. What happens is, that you learn to pick up the fishing rod, attach the bait, and fish for. That way, you definitely know if the fish you caught is high quality Bluefin Tuna, or a sardine. Like I said.

Each type of currency has several different underlying factors which affect the price of it. Such news can happen all the time. But instead of losing all of your investment, you set stop-loss, identify a hedge, and in the event of such a catastrophe, DO NOT end up selling your position. The most powerful economies identify technology and how it helps them, and use it to their advantage to leapfrog in economic growth. Just like a self-fulfilling prophecy.

You Sell. You bring the price. For no other reason than FUD. Do you feel scared? Want to feel comforted? YouTube and Tron is probably the answer. S tarting at the very basic, there are two coins that form the backbone of this market. Both of them provide different use-cases for the investors, and are essential platforms over which a Token can be built and sold to the public. Determining the use-case is very, very important for investors to understand before they put their money into.

Bitcoin completely bypasses traditional banking institutions. It broadcasts transactions to the network the blockchain in a transparent way. Ethereum introduced the world to something called as a smart contract. It focuses on running the programming code of any decentralized application. What are smart contracts? A computer code which facilitates the exchange of money, data, cars, hookers, marijuana, property, planets.

Just like a self operating machine, a smart contract running on the blockchain will operate when all conditions are met from the specific list the programmer decided to give it. And just like Etheruem, we have several other platforms coming up, all with their unique offerings over which a developer can program a decentralized App dAppand hence grow the ecosystem.

Simple, by identifying and investing in a platformthat has a strong roadmap, a strong team, multiple dApps development lined up, and strong partnerships coming up, you get a chance to purchase it while the coin is still a few hundred, a hundred, a few dollars, or a even a few pennies cheap.

Always research and be on the lookout for valuable information that puts confidence in your investment. And that, is your first investment. The backbone of your trading portfolio. The backbone you believe in the most which creates the path you tread on. And just like our oceanic ecosystem, every specific cryptocurrency can have a million coins, or even a billion.

All this has to be taken into account while investing, after all, the market for Tuna is bigger than sardine, and the market for Alaskan Pollock is bigger than both of Tuna and Sardine. These coins, called altcoins, are typically what the second part of your investment should be.

The part you use to swing tradei. Any coin apart from Bitcoin or Ethereum, in the implied sense of the word. However, we look to include platform coins in our main holding, the shipinstead of using them to swing trade.

How To Make Money With Cryptocurrency (Even In A Bear Market!)

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Market neutral crypto funds have done well

)}Even when the market is in an overall downtrend, there are still several ways to emerge profitable. Depending how to make money in cryptocurrency bear market your level of risk tolerance, you may want to bet on the overall market trend, make guesses on micro-trends, or just hold and make passive income. In each of these methods, there is a tradeoff between risk and reward, and it is up to the individual to manage his or her personal ideal balance between the two. Shorting, or short selling, is effectively the opposite of buying a coin and hoping for the price to increase. In a short sale, you borrow coins from the exchange and sell at the current price. Once you close your short position, you then have to buy back the same number of coins at the current price in order to give the exchange back the same volume of coins. Therefore, in a short sale, the most desirable situation is one in which you initiate the short position at a high price, and close your position at a low price, thus selling high and buying low. This technique is typically used to hedge portfolios and reduce risk, but can be a powerful tool when facing an extended downturn in the market. One way of acquiring coins to short sell is by using a lending platform such as ETHLend. Within a confirmed upward or downward channel of price movement, there will always be small peaks and valleys in the price as it moves in that general direction.⓬