You can earn Bitcoin even in a downward market.
At present, the market is in a downward trend. However, there are still several ways to profit. Different people have different risk tolerance, some of them are gamblers who prefer to “show hand” on the market trend.
Others may concentrate on specific trends or hold their orders to make income passively. Each way has a tradeoff between profit and risk and traders may need to consider their strategy carefully.
1. Short Selling
Short selling, also called shorting, is a trading strategy in Bitcoin futures trading. It works in the opposite way to purchasing the token to chase the increasing price.
Short selling is for traders to lend money from an exchange or banker at the present or a specific price. When traders close the short orders, they return the token to the exchange or banker by purchasing the same amount of tokens at the current price. Traders open short orders at a high price at the beginning and close the orders at a low price.
In other words, successful traders sell high and buy low. In general, traders use this method to lower the risk in hedge portfolios.
It can also be a great tool in the bear market. For example, traders can profit if the bitcoin price falls from $4000 to $3000, where they would lose their capital in spot trading or long position in the same situation.
However, in a long position, the maximum of the traders’ loss is 0 - where they lose their total investment. In short sale, traders may face the risk that the loss will turn into debt as the price can go up without a limit.
(photo by https://www.investorsunderground.com/learn-short-selling-day-trading-guide/)
2. Swing Trading
Swing trading involves trying to make a profit from the price movements in the short-term period of the index rather than focusing on the macro market tendency.
In a stable uptrend or downtrend of the price, it will have some high point or low point of when it moves in a general direction. By observing the micro market trend, professional traders can catch the signal to earn money from buying in the valleys and selling in the peaks or shorting in the high and buying back in the peaks.
The market volatility of a bear market is the perfect situation to try this. To become professional traders, one must have experience in analyzing different forms of technical pattern formation and indicators, such as RSI or KDJ.
The swing trade is full of risk which is why its recommended that only traders who have high-risk tolerance and a lot experience trade using swing trading.
3. Passive Token Trading
For traders who do not have high-risk tolerance or who do not have significant trading experience, the best way for them is to hold their tokens regardless of market activity.
In this way, traders are supposed to be collectors who hope the token price will go up. At present, Bitcoin is considered as one of the safest digital assets in the world. Its proof-of-work and decentralized mechanism means it remains a relatively low risk. The privacy, fungibility, and scalability of bitcoin show the potential to become the newest currency or store of value.
Bexplus exchange provides shorting tools to all traders who are hoping to engage in short selling.
In addition, when short selling - traders do not need to worry about the debt situation. Bexplus has a negative clearing mechanism which clears out the negative value to control traders’ loss in the range of their investment. Traders can open shorting orders in Bitcoin, Ethereum and Litecoin, with more tokens coming in the future.
Bexplus has a professional trading system and offers chat with traders who can find the useful trading indicators. If you are trading professional, you will love with the Bexplus trading system.
Bitcoin is the only trading token in the platform. Traders do not need to transfer Bitcoin to altcoins to deposit, trade, or withdraw from Bexplus. It means that they can keep their bitcoin in their hand during trading without bearing the loss to exchange the tokens.
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To deposit BTC in the Bexplus account, you can earn a 100% BTC bonus, which can also be used to trade futures contracts. The more deposit, the more bonus you can get. You can get up to 10 BTC as a bonus!
Invite Friends to Register to Get 30% Commission
Invite friends to register and trade in Bexplus, you can get 30% of your invitees’ transaction fee. In addition, both you and your invitees can enjoy 10% OFF service charge.
Before cryptocurrency futures contracts, we suggest you understand more about them. You can also try it in the Bexplus trading simulator with 10 BTC preset and enjoy testing your trading abilities.
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Important information - please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.